Jacob Law Articles

Help-To-Buy Incentive for First Time Buyers

The Help-to-Buy Incentive for First Time Buyers is a state scheme to provide First Time Buyers with assistance to purchase their first home. It is an inventive state scheme in that, assuming you meet the criteria, you receive a rebate on the Income Tax that you paid in the previous 4 years. Furthermore, this rebate includes D.I.R.T. (Deposit Interest Retention Tax). D.I.R.T. is the tax you pay on the interest your deposit savings earns. The maximum you can claim on the Help-To-Buy Incentive Scheme is €30,000 or 10% of the value of the house.

Important things to consider in relation to the Help-To-Buy Incentive for First Time Buyers:

Are you eligible for the Help-To-Buy Incentive?

YES if you are a FIRST TIME BUYER and buying a qualifying property before 31st December 2022. You must live in this property for 5 years and you must be tax compliant (self-employed must have tax clearance). In addition, you must take out a Mortgage on the property with a Lender who is recognised by the scheme. Also, the Mortgage must be a minimum of 70% of the value of the property or 70% of the confirmed valuation if it is a self-build home. All parties purchasing the property must be First time Buyers.

Are all housing developers/contractors part of the Help-To-Buy Incentive?

Not everyone is the straight answer. Although, many are now part of the Scheme and classified as “Qualifying Contractors”. Accordingly, if you are considering purchasing your first home and feel you may need assistance of the Help-To-Buy Scheme, be sure to first check the list of approved property developers in your area so you will know where to start your property search. In order for a property developer/contractor to get approval, they must apply to Revenue by submitting a Form-HTB1 along with the required supplementary documentation. Once the Revenue are happy with the Contractor’s application they will register them and confirm they are now a “Qualifying Contractor”. Further, their name will be published on the list of approved developers on the revenue website.

Check out the list of approved contractors here.

Are all types of property included in the Help-To-Buy Incentive?

For the property to qualify for the scheme, you must use the property as your home. Likewise, it must be a new build type property and the building of same being subject to VAT (value added tax). However, there are some instances where an existing property might meet approval.

For example, if it was originally a commercial type building but is now being converted to a residential type building, Revenue may approve it. The price of the property cannot be over €500,000. Similarly, in the situation of a self-build home, the mortgage lender must confirm the valuation to be €500,000 or less. Furthermore, the mortgage must be no less than 70% of the purchase price.

So, What Are You Entitled To under the Help-To-Buy Incentive for First Time Buyers?

The sum you can apply for is the lesser of the following:

€30,000 (€30,000 is in fact the maximum you can claim)
10% of the purchase value of the new property
the total sum of the Income Tax and D.I.R.T you paid in the 4 years previous.

How do you receive the money?

Once you buy a qualifying property from a qualifying contractor, the Revenue pays the relevant amount to the Contractor in question. This sum is then a partial payment towards the property you are buying.

Once your get approved by Revenue for the Help to buy incentive, and you make a decision on the Lender, get in touch with Jacob Law solicitors. We offer the most competitive legal costs on the market.

With fully transparent and automated processes, and unrivalled experience in buying and selling properties, Jacob Law solicitors will make the process of purchase and/or selling a property as easy as possible for you. Our legal services are specifically tailored to your needs. We provide a nationwide service and you can meet us online from the comfort of your home.

Visit Jacob Law Property Purchase Page and get in touch with us for a quote.

Help-To-Buy Incentive for First Time Buyers