Mortgage Allowance Scheme

 SUMMARY  

Grant / Support Name: Mortgage Allowance Scheme   

Provider: Irish Government via local authorities nationwide   

Value: Up to €11,450 over a 5-year period  

Overview: The Mortgage Allowance Scheme was introduced to offer financial help if you are a tenant or tenant purchaser of a local authority house and want to buy a different home to live in instead.  The money will be paid directly to your mortgage provider over a period of 5 years and your mortgage value must be at least €38,092.14.  

Eligibility:  

• You may be eligible if you are a local authority tenant or tenant purchaser and you want to buy or build a private house and return your present house to the local authority. 

or  

• If you are a housing association tenant for more than one year in housing provided under the Rental Subsidy Scheme, and you are giving up your tenancy and taking out a mortgage to buy or build a private house. 

• You will not be eligible If you bought your home  under the Shared Ownership Scheme. 

 Special Conditions:   

• The home you are planning to buy must be suitable for your needs, meet certain minimum standards and be acceptable to the local authority. 

• You must continue to live in your new home throughout the five-year period to which the allowance relates. 

Tax Implications: There are no tax implications.  

ARTICLE   

The Mortgage Allowance Scheme was introduced to provide financial assistance to tenants or tenant purchasers of local authority houses who wish to purchase a different home to live in. To avail of the scheme, the home you are planning to buy must be suitable for your needs, meet certain minimum standards and be acceptable to the local authority. Payments under this scheme are made directly to your mortgage provider over a five-year period, and your mortgage must be for at least €38,092.14. 

Under the Mortgage Allowance Scheme, you could receive an allowance of up to €11,450 paid directly to your mortgage provider over the first five years of your mortgage term. This reduces your repayments during the initial five years of your mortgage. Your mortgage can be with a commercial lender or a local authority. 

You might qualify if: 

• You're currently a local authority tenant or a tenant purchaser looking to buy a private house and return your current house to the local authority. Note, however, that if you're purchasing a house under the Shared Ownership Scheme, you won't be eligible for the Mortgage Allowance Scheme. 

• You've been a tenant of a housing association for over a year under the Rental Subsidy Scheme, and you're giving up your tenancy to take out a mortgage for buying or building a private house. 

The amount of the allowance is €11,450, payable over five years as follows: 

• Year 1 = €3,560 

• Year 2 = €2,800 

• Year 3 = €2,040 

• Year 4 = €1,780 

• Year 5 = €1,270 

The allowance or the allowance plus income tax relief on mortgage interest cannot, in any year, exceed the amount of the loan charges due. 

You must continue to occupy your new home as your place of residence throughout the five-year period to which the allowance relates. 

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