Are you a first-time buyer in Ireland looking to purchase your own home? If yes, then the Help to Buy scheme is the perfect opportunity for you! This article will explain everything to you about the Help to Buy scheme.
What is the Help to Buy Scheme?
The Help to Buy scheme was introduced by the Irish government in 2016 to help first-time buyers to purchase their own homes. The scheme provides a tax rebate of up to 10% of the property value or €30,000, whichever is the lower amount. The Help to Buy scheme is only applicable to new builds and self-builds and is aimed at helping people to get onto the property ladder
How Does the Help to Buy Scheme Work?
To be eligible for this scheme, you must be a first-time buyer, purchasing a new build or self-build property, and be able to provide evidence of tax paid in the previous four years. You must also take out a mortgage of at least 70% of the purchase price. The scheme applies to properties with a maximum value of €500,000.
Once you have purchased your property, you can apply for the HTB scheme through the Revenue Commissioners. You must provide evidence of the tax paid in the previous four years and complete the online application form. If your application is approved, the tax rebate will be paid directly to you, and you can use it as a deposit on your new home.
Benefits of the Help to Buy Scheme
The HTB scheme has many benefits for first-time buyers. The tax rebate can be used as a deposit, which can reduce your mortgage repayments and make it easier to get a mortgage. The scheme can also help you to afford a better-quality home or a more desirable location.
Additionally, the Help to Buy scheme can help to stimulate the construction industry, as it encourages developers to build new homes. This can help to increase the supply of affordable homes, which can benefit everyone in the housing market.
Potential Drawbacks of the Help to Buy Scheme
While the this scheme has many benefits, there are also few potential drawbacks to consider. One of the main drawbacks is that the scheme is only applicable to new builds and self-builds. This means that buyers may not have access to a wider range of properties, and there may be limited choice in terms of location.
Another potential drawback is that the scheme may lead to an increase in property prices, as it encourages demand for new builds. This could make it more difficult for first-time buyers to get onto the property ladder in the long run.
How to apply for the Help to Buy scheme?
If you’re interested in applying for the Help to Buy scheme in Ireland, it’s important to know the steps involved. Here’s a quick overview to help you get started.
You’ll need to follow these steps:
- Make sure you’re eligible for the scheme. You must be a first-time buyer who is purchasing a new build or self-build property, and you must be able to provide evidence of tax paid in the previous four years.
- Find a property that is eligible for this scheme. Remember that the scheme only applies to new builds and self-builds with a maximum value of €500,000.
- Make sure you qualify for a mortgage of at least 70% of the property value. Some study might be needed here to make sure you “pass the tests” before applying for a mortgage. A good mortgage broker can set the tone quickly for you here.
- If you are a PAYE employee you can apply from Revenue’s myAccount service. If you are a self-assessed taxpayer, you can apply through Revenue’s Online Service (ROS). You’ll need to provide evidence of the tax paid in the previous four years and complete the online application form.
- Wait for your application to be processed. It typically takes around four to eight weeks to receive the tax rebate after your application has been approved.
- Receive your tax rebate and use it as a deposit on your new home.
Our Advice
Overall, the application process is straightforward and easy to navigate. If you’re a first-time buyer in Ireland who is looking to purchase a new build or self-build property, the Help to Buy scheme is definitely worth considering. It can provide a much-needed boost to your finances and help you to get onto the property ladder. However, it is important to consider the potential drawbacks before making a decision.
FAQs
Q. Who is eligible for the Help to Buy scheme?
First-time buyers who are purchasing a new build or self-build property.
Q. How much tax rebate can I get through the Help to Buy scheme?
You can get up to 10% of the property value or €30,000, whichever is the lower amount.
Q. Can I use the tax rebate as a deposit on my new home?
Yes, the tax rebate can be used as a deposit, which can reduce your mortgage repayments.
Q. Does the Help to Buy scheme apply to all properties?
No, the scheme is only applicable to new builds and self-builds with a maximum value of €500,000.
Q. Is the Help to Buy scheme available in Northern Ireland?
No, the scheme is only available in the Republic of Ireland.
Q. Can I still apply for the Help to Buy scheme if I have already purchased a property?
No, the scheme is only applicable for first-time buyers who are purchasing a new build or self-build property.
Q. Can I use the tax rebate for anything else other than a deposit on my new home?
No, the tax rebate can only be used as a deposit on your new home.
Q. How long does it take to receive the tax rebate after applying for the Help to Buy scheme?
It typically takes around four to eight weeks to receive the tax rebate after your application has been approved.
Q. Can I apply for the Help to Buy scheme if I am self-employed?
Yes, you can apply if you are self-employed, as long as you can provide evidence of tax paid in the previous four years.
Q. Is the Help to Buy scheme available for properties of all values?
No, the scheme is only applicable to new builds and self-builds with a maximum value of €500,000. This is to ensure that the scheme is targeted towards first-time buyers who may struggle to afford a home in the current market. However, there are many affordable new builds and self-builds available within this price range, so there are still plenty of options for those looking to take advantage of this scheme.
We hope that this blog has helped you to understand everything you need to know about the first time buyer scheme in Ireland. If you need any assistance regarding HTB scheme, don’t hesitate to contact us.
