Mortgage Interest Relief (Tax Relief at Source - TRS)

What is a qualifying mortgage loan?

A qualifying mortgage loan is a loan secured by the mortgage of freehold or leasehold estate, or interest in a principal private residence.

A qualifying mortgage loan may be:

• a new mortgage
• a top-up loan used to develop or improve the home
• a separate home loan used to develop or improve the home
• or
• a re-mortgage or a consolidation of existing loans.

Examples of qualifying mortgage loans

Qualifying mortgage loans are loans used for the purpose of:

• purchasing your home
• extensions or purchasing or constructing a
  • garage
  • garden shed
  • greenhouse
  • swimming pool
  • tennis court
• constructing a driveway or path
• conversions
• installing central heating
• rewiring and plumbing (including bathroom suites)
• replacing windows and double glazing
• purchasing and installing bedroom and kitchen units which are affixed to and become part of the building
• purchasing and installing burglar or fire alarms
• the installation and treatment for damp, dry rot and woodworm
• landscaping gardens (including garden walls)
• payments to group water and sewerage schemes
• purchasing another person's part interest in the home
• legal fees and other fees related to purchasing or developing your home
• Stamp Duty on the purchase of your home.

How is the relief granted on a qualifying mortgage loan?

Your lender grants tax relief for a qualifying mortgage loan directly through the Tax Relief at Source (TRS) scheme. The TRS system applies to secured home loans. These are loans secured by the mortgage of freehold or leasehold estate or interest in a principal private residence. The lender gives the relief by either reducing your monthly mortgage payment or as a credit back into your mortgage funding account.

How is the relief granted on other qualifying home loans?

You can claim tax relief through your Revenue Office for a home loan that is:

• not secured on the title deeds of the home
• or
• secured on a property other than your home.

The relief, in this instance, is paid through the tax system by:

• a review at the end of the tax year
• or
• a relief shown on the certificate of tax credits during the tax year.

Next: Do you qualify for Mortgage Interest Relief?