Question 1

What Is The Help To Buy Scheme?

Accepted Answer

Simply put, this gem of a scheme gives first-time buyers a refund of some of the income tax and DIRT (Deposit Income Retention Tax) that they have been paying in Ireland over the last four years./ rant beginsOr less simply put, it’s a harebrained scheme that the Government is using as a sop to first-time buyers instead of dealing with the crisis by building more houses./ rant endsOf course, to get your mitts on any cash from the HTB scheme, there are conditions to satisfy, the big ones being:You must be a First-time BuyerYou have to buy a new build or a self-buildThe latter is a bit of a crappy condition as most new builds are far pricier than a house built in the ’70s

Question 2

What Do I Need To Have To Qualify For The HTB Scheme?

Accepted Answer

OK, you so have cleared the first hurdles.Smooth!Now let’s get deep into the nitty-gritty and determine whether this scheme is right for you.More obstacles:You must have never owned a home in the Republic of Ireland before (even with someone else)Your desired home must cost less than 500,000 smackeroos.Your mortgage must be at least 70% of the house value to qualify, e.g. the house is €300,000, so your mortgage must be at least €210,000You must be tax compliant.The developer must be on the Approved List of Qualifying ContractorsYou must live in your prospective home for a minimum of 5 years after purchase

Question 3

How much money can you get from Help to Buy?

Accepted Answer

If you were to replace a boat piece by piece, is it the same boat?I do not know the answer to either question.But I know the amount of HTB Benjamins you can get depends on the years you’ve worked over the last four and how much Income Tax and DIRT you have paid.Remember, the Government hasn’t gone all Willy Wonka here, handing out Golden tickets and everlasting gobstoppers.It’s just refunding what you have already paid.So they’ve gone with three distinct ways of working how much cash they’re willing to hand back, and they go like this.A maximum of €30,000 (regardless of the number of buyers)10% of the purchase price of your new home or the completion value of your self-buildThe total amount of Income Tax and DIRT you have paid over the last four years.So how do they decide which one to go with for you?Go on, have a guess.You would be right on the money if you said whichever one gives you the smallest amount.And this can be a real kicker if you haven’t worked every hour God sent in the last four years and paid a fair whack of Income Tax and DIRT.It’s pretty clear how to make the most of the HTB scheme:Don’t apply until you have worked and paid taxes for the full four years before applying, or the Help To Buy Scheme might not be that helpful.

Question 4

If you have paid a boat load of tax, how does the HTB scheme work in practice?

Accepted Answer

OK, let’s say you spot a new build for €310,000 (good luck trying to find one of these in Dublin).In the last four years, you have paid €50,000 in income tax or DIRT.So you will qualify for the maximum of €30,000, leaving you with a mortgage of €280,000.

Question 5

I’m self-employed. Can I qualify for the HTB Scheme?

Accepted Answer

When researching this article, I fully expected there to be some sort of exclusion or limitation for the self-employed because the Government think all self-employed people are gazillionaires, paying zero in tax and living it large on their offshore islands.For once, though, being self-employed won’t affect your eligibility under the HTB Scheme.As long as you are fully tax compliant, you can join the party (what do you mean you pay zero in tax?)So all annual tax returns need to be filed on time, with no underpayments, and it might make sense to get yourself an accountant to sign off on your tax certificates too.So keep everything above board, and you, my self employed friend, will be ready to rock.

Mortgage Protection Insurance

How Does the Help to Buy Scheme Work in 2022?

Does Genetic Testing Affect The Cost of Life Insurance?

Get in touch

Don’t know where to start?

Life Insurance Quotes - Free and Easy!