Joe Costello (Dublin Central, Labour)
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Question 115: To ask the Tánaiste and Minister for Finance the cost of mortgage relief given by way of tax relief at source in 2004, 2005 and 2006; the number of properties to which this applied; the cost of mortgage relief given by way of tax relief at source in the first five months of 2007; and the estimated cost of mortgage relief given by way of tax relief at source for 2007 as a whole. [29562/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the cost of mortgage interest relief by way of tax relief at source for the years in question was as follows: 2004, € 232 million; 2005, € 279 million; 2006, € 352 million and from January to May 2007 inclusive, €211 million.

On the basis of trends to date the cost of mortgage interest relief given through the tax relief at source system for 2007 is estimated at about €560 million. This cost takes account of the increased ceilings introduced on 1st January 2007 for first time buyers and also takes account of applications for mortgage interest relief for prior qualifying years. It should be noted that in 2007, there was an increase of 25% in the number of applications for mortgage interest relief which included applications for relief in respect of previous years.

The Revenue Commissioners are not in a position to estimate how many properties currently qualify for mortgage interest relief, as a property may be the subject of more than one loan or a claimant may claim mortgage tax relief in respect of a mortgage paid by them for a separated/ divorced spouse, and/or a dependent relative (i.e. widowed parent, elderly relative) for whom they are claiming a dependent relative tax credit. However, there are currently 570,000 qualifying loans in respect of which tax relief at source is applied. This compares to 550,000 qualifying loans at the end of 2006; 527,000 qualifying loans at the end of 2005 and 445,000 qualifying loans at the end of 2004.