What Is Mortgage Interest Relief?

Mortgage Interest Relief is an annual tax relief which can be obtained on the amount of interest paid on qualifying mortgages and loans used to improve, purchase, or repair homes.

Which Mortgage Loans Qualified for Mortgage Interest Relief?

Loans must have been for a principal private residence and taken between 2004–2012 (inclusive). Qualifying purposes included:

  1. Developing or improving the residence (top-up mortgages)
  2. Separate loans for developing or improving the residence
  3. Remortgaging the principal residence
  4. Consolidation of existing loans

Examples of qualifying improvements include extensions, garages, greenhouses, driveways, upgrading insulation and windows, and installing alarms.

How Does Mortgage Interest Relief Work?

Tax relief can be claimed through the TRS scheme, with credit applied against monthly payments or added as a mortgage account credit. For loans (not mortgages), applicants must contact their local Revenue Office.

What is the TRS scheme? The TRS Scheme is also known as the Tax Relief at Source scheme. The scheme allows mortgage holders to apply online for Mortgage Interest Relief to be directly applied to their mortgage, rather than having to wait until the end of the tax year.

Who Can Claim Mortgage Interest Relief?

Mortgage Interest Relief can be claimed if, between 2004–2012 (inclusive), a mortgage or loan was taken out to improve, repair, or purchase a house which is or was your primary residence. Special cases include loans made for previous spouses' or civil partners' homes or dependent relatives' properties.

When Does the Mortgage Interest Relief Scheme End?

Applications for the scheme stopped in December 2020. Homeowners renting properties may explore mortgage interest tax deductions. Under certain circumstances, some people qualified for mortgage relief for loans taken out between 2013–2020.

How to Claim Mortgage Interest Relief?

Relief can only be claimed through Revenue's online form. Applicants need their PPSN and details of all previous property loans. For joint borrowings, separate applications are required (except married couples or civil partners filing jointly). Relief does not require annual renewal.

Need Help Setting Up Your New Home?

Moving house? Our experts at Selectra can set up your energy, broadband, and utilities in one free call — saving you time and money.

Ad - Selectra Service
This is a free call from Ireland. Selectra agents can assist you with comparing and switching energy providers on weekdays between 9 am and 5.30 pm.

Can I Receive Interest Relief if I Move Homes?

Homeowners must notify Revenue immediately when moving. Those transferring mortgages to new properties may still qualify. Eligibility ceases if homeowners no longer occupy the property, never intended to live there, or used loans for unrelated expenses.

Can I Deduct Mortgage Interest for Rental Properties?

Those benefiting from the Mortgage Interest Relief Scheme cannot continue receiving it if renting the property. Revenue must be notified immediately to avoid penalties.

However, those not receiving the scheme may deduct up to 75% of their mortgage interest paid on rental properties.

Is There Mortgage Relief for the Remaining 25% Interest?

Yes! The Irish Government added a special provision to help with the housing crisis in the country. An additional 25% deduction is available under specific conditions.

Renting to a Qualified Tenant

To qualify for the additional deduction, the tenant must meet these requirements:

  1. Housing authorities deem the tenant qualified for social housing support
  2. The tenant is entitled to rent supplement from the Department of Social Protection
Properties must be rented for a minimum three-year period. The 25% deduction only applies after this period expires.

Frequently Asked Questions About Mortgage Interest Relief in Ireland

No, applications for the scheme stopped in December 2020. However, homeowners who qualified before this date may still be receiving payments. For other financial supports, see our Help to Buy Scheme guide.
Loans taken between 2004 and 2012 for a principal private residence qualified. This included mortgages for purchasing, developing, or improving a home, as well as remortgaging and loan consolidation.
If you are not receiving the Mortgage Interest Relief Scheme, you may deduct up to 75% of your mortgage interest paid on rental properties. An additional 25% deduction may be available if you rent to a qualified tenant for social housing support.
You must notify Revenue immediately when moving. If you transfer your mortgage to a new property, you may still qualify. Eligibility ceases if you no longer occupy the property or never intended to live there. Failure to notify Revenue could result in fines.

Related guides