Mortgage interest relief

You are entitled to claim tax relief on the interest you pay on your home mortgage over a given tax year, provided you took out your mortgage prior to December 2012. A tax year means the period from 1 January to 31 December.

New mortgages, top-up loans, home improvement or extension loans and re-mortgages taken out prior to December 2012, qualify for this tax relief. These loans must be used to purchase, repair or improve your main or sole residence, provided this is situated in the state. If you work and pay taxes in the UK or Northern Ireland, with your home in Ireland, you still qualify for this relief.

How do you claim your benefit?

With effect from January 2014, all lenders are obliged under law to pay Tax Relief at Source (TRS), based on the amount of interest paid by the borrower within the tax year. Generally your mortgage repayment will be reduced by the amount of tax relief you are due, or the amount of money will be paid directly to your account. You will need to have your Personal Public Security Number (PPSN) and your mortgage account number as provided by your bank, to benefit from this relief.

Your tax relief is subject to certain limits which will be based on your personal situation or whether or not you are a first time buyer, so you may need to check this out at revenue.ie.

Your entitlement to tax relief also largely depends on the date you started repaying your mortgage. If you started repaying your mortgage in 2003 or earlier, unfortunately your entitlement to this relief expired in 2009. If you took your mortgage out between 1 January 2004 and 31 December 2012, you can receive tax relief up until December 2017. If you took your mortgage out after 31 December 2012, unfortunately you no longer qualify for tax relief.

You can apply by:

  • Downloading the TRS1 form from revenue.ie
  • Getting the TRS1 form from your mortgage lender
  • Ringing the TRS Helpline on 1890 46 36 26

You may need to re-apply to Revenue for tax relief in certain circumstances. For example, if you switch or top up your mortgage.

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