Qualifying Mortgage Loans are loans acquired by the mortgage of leasehold or freehold estate, or interest in a private principal residence.
These loans can be:
- a consolidation of existing loans or re-mortgage
- A separate home loan used to improve or develop a home
- A new mortgage
- A top-up loan used to improve or develop a home
Examples of Qualifying Mortgage Loans
Some examples of purposes a qualifying mortgage loan might be used for are:
- Purchasing a new home
- Purchasing alarms for installation in the event of fires and carbon monoxide poisoning
- Legal fees related to developing your home
- Purchasing new units such as kitchen and bedrooms which are affixed to the building and become a part of it
- Extensions made to a new home such as
- Swimming pools
- Tennis courts
- Tools sheds
- Replacing windows
- Constructing a path or driveway
- The installation of central heating
Do I qualify for tax relief?
Your loan may qualify for relief in the event it was taken out between the years 2004 and 2012. In order to qualify the loan needed to have been for:
- Your own home
- The home of a separated or former spouse or civil partner
- The home of a relative who you claim as a dependent relative tax credit
Even if you work in the United Kingdom you can still claim relief so long as you live in Ireland, assuming you have a Personal Public Service Number (PPSN).
In this case a home can be defined as a flat, a house, or a mobile home established at a permanent site, all of which need to have water services being supplied to it.
What if my loan was taken out after 2012?
There are special circumstances in which you may qualify for the tax relief even after the year 2012. These circumstances include:
- A loan taken to improve, repair, or develop your home assuming:
- The balance of the loan was used in 2013
- Part of the loan was used in 2012
- Loan approval was in place in 2012
- A loan taken in the year 2013 for the construction of a home on land that was purchased using a loan taken out prior in 2012.
Require planning permissions must have been received in order to qualify relief before the 31st of December 2012.
If the following conditions have been met then the loan is deemed to have been taken out in 2012 and you may qualify for the mortgage interest tax relief.