Home Loan interest relief

Tax Relief at Source (TRS) on Secured loans

Tax relief for home mortgage interest (secured loans) is not given through the tax system but is instead granted at source (TRS). Mortgage repayments are reduced by the amount of the tax credit due. For example, if the interest element of your mortgage repayment per month is say €500, your mortgage lender will reduce your monthly mortgage payment by €100 per month. This reduction is the same as giving tax relief at the standard rate of tax (20%).

Any future adjustments in your tax relief will be made automatically by your mortgage lender. It is not necessary to claim relief on your annual tax return or to contact your local Revenue office.

If, however, you are making mortgage repayments and not receiving Tax Relief at Source, you should contact TRS Section, Collector-General’s Division at LoCall 1890 46 36 26 who will arrange for the relief to come into effect.

Relief for interest payments made on unsecured Home Loans used for qualifying purposes, i.e. repair or improvement of your sole or main residence can be claimed by review at the end of the tax year.

If, however, you are paying interest on a qualifying private residence mortgage in excess of the ceiling for relief, listed below, and you are receiving Tax Relief at Source on this interest then there will be no additional relief due in respect of a qualifying unsecured home loan.

» Back to TopAmount of Relief Available

Relief is due at the standard rate of tax (20%) in the tax years 2007 and 2008 subject to the following upper limits:

First Time Buyers:

* The period for which the relief is available is seven years.