Cathoirleach of South and West Sligo municipal district Cllr Dara Mulvey has welcomed the rollout of the Help-to-Buy (HTB) Scheme which was announced by Minister for Finance Michael Noonan TD in the last budget.
As a result, first-time buyers now need a deposit of just 10% towards a home purchase.
Over one hundred first-time buyers applied for the Government’s new HTB scheme within the first few hours of been launched earlier this week January 3th stated Cllr Mulvey.
The home purchase incentive offers home buyers the chance to get up to €20,000 to put against their deposit on a new home.
Applications opened on the website of the Revenue Commissioners on Tuesday morning and, by 1pm, well over 100 people had applied, according to a spokesperson.
That number is likely to rise significantly in the next few days as people looking to avail of the scheme have first to register for the Revenue’s online tax affairs portals and, in the case of PAYE workers, complete up to four tax return forms as part of their application.Contracts
The scheme is open to first-time buyers who have signed contracts since July 19th last year or will do before the end of 2019 on newly-built homes, or properties they are building themselves worth less than €500,000.
It provides a payment equal to 5 per cent of the property value up to a maximum of €20,000 by way of a rebate of income tax and DIRT paid by the homebuyers in the four years before the year they buy their first home.
The scheme was designed to help people who were having trouble saving a deposit of between 10 and 20% of the property value under tighter Central Bank mortgage lending rules introduced in February 2015.
However, the Central Bank eased those rules in November 2016 , just weeks after Minister for Finance Michael Noonan announced details of the Help-to-Buy scheme in the budget. As a result, first-time buyers now need a deposit of just 10%, and half of that will come from the Help-to-Buy programme.
More details on the scheme are available on www.revenue.ie