Róisín Shortall (Dublin North West, Labour)
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Question 188: To ask the Minister for Finance the entitlement to mortgage interest relief and the relevant thresholds and rates of relief that apply in the circumstances in which a couple are purchasing an apartment that they will occupy themselves when one is a first-time buyer and the other a second-time buyer with eight years expired on their first property; and if different rates apply if the second-time buyer trades up or if they retain the property. [18059/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As announced in my Budget Statement on 7 April last, from 1 May 2009 all mortgage holders are eligible for mortgage interest relief for a period of 7 years on any new loan taken out to purchase, repair, develop or improve their sole or main residence in the State. In the circumstances described, the couple will individually receive mortgage interest relief through the tax relief at source (TRS) system for 7 years on their portion of the new mortgage taken out to purchase the apartment where it is to be their sole or main residence.

From 1st January 2009, the rate of relief applicable to a first time buyer is 25% for the first two years. This falls to 22.5% for the next 3 years and to 20% for years 6 and 7. The rate for non first time buyers is 15%. The ceiling or maximum amount of interest eligible for TRS will be €10,000 for the first time buyer and €3,000 for the non first time buyer. If the non first time buyer is retaining their first property, they will have no entitlement to mortgage interest relief in respect of that property because the newly purchased apartment is now their principal private residence. A decision to retain their first property or not, as the case may be, will not impact on the rate of relief that will apply to their new apartment.