- Deposit Assistance: The HTB scheme provides financial assistance to first-time buyers by helping them with the deposit required to purchase or self-build a new property. This can be a significant benefit as saving for a deposit is often one of the biggest challenges faced by first-time buyers.
- Affordable New Homes: The scheme is applicable to newly constructed properties with a value of €500,000 or less. This means that first-time buyers have access to a range of affordable housing options, making homeownership more achievable and realistic.
- Maximum Relief Amount: The HTB scheme offers a maximum relief amount that can be claimed. This amount is the lesser of €30,000 or 10% of the purchase value of a new home or 10% of the approved valuation in the case of self-builds. This relief can significantly reduce the financial burden on first-time buyers and make homeownership more affordable.
- Tax Relief: Another benefit of the HTB scheme is that it takes into account the income tax and Deposit Interest Retention Tax (DIRT) paid by the applicant in the four years prior to the mortgage application. This means that eligible individuals can receive additional relief based on their tax payments, further reducing the overall cost of purchasing a home.
Qualifying for the HTB Scheme:
- First-Time Buyer: To qualify for the HTB scheme, you must be a first-time buyer. This means that you have not previously purchased or owned a property.
- Purchase or Self-Build: The scheme is applicable to individuals purchasing or self-building a qualifying property between January 2017 and December 2024. This provides flexibility for those looking to buy or build their first home.
- Minimum Borrowing Requirement: To be eligible for the scheme, you must borrow at least 70% of the property value. This ensures that the HTB scheme is targeted towards those who need assistance with financing their home purchase.
- Owner Occupier: You must intend to live in the property as your main residence for at least five years after purchasing or self-building. If you move out before this time, the rebate received through the HTB scheme must be paid back.
- Tax Compliance: It is important to be tax compliant to qualify for the HTB scheme. If you are self-employed, you must have tax clearance to be eligible for the scheme.
- Approved Contractors: The contractor or developer from whom you are purchasing your home must be approved by Revenue. You can verify the list of approved developers and contractors directly on the Revenue website. However, for self-builds, you are not required to use a Revenue-approved contractor.
The Help to Buy (HTB) scheme offers valuable support to first-time buyers by assisting with the deposit and making homeownership more affordable. To learn more about the HTB scheme and how it can benefit you, contact our dedicated advisors at Ezfees Financial. We are here to provide guidance, advice, and ensure your peace of mind throughout the home buying process. Call us on 0818 910800 or email your query to firstname.lastname@example.org.