Róisín Shortall (Dublin North West, Labour)
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Question 93: To ask the Minister for Finance, further to his budget announcement regarding the extension of mortgage interest for home owners in negative equity, the basis and the person by whom it is determined that a home owner has negative equity status. [48209/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As I announced in my Budget, mortgage interest tax relief will be extended until 2017 for those who took out a qualifying home loan in 2004 or after. Tax relief at current rates for the first seven years will be available for qualifying loans taken out up to 1 July 2011 and at a reduced level once the seven years is complete, until 2017. Transitional tax relief, also at a reduced level, will be available from 1 July 2011 for qualifying loans for the following 18 months up to end 2012. There will be no relief for interest paid on home loans taken out after that date and the entire scheme will terminate in 2017. Full details will be provided in the Finance Bill.

Many of those who purchased homes from 2004 onwards, when house prices were at their peak, may now find themselves in negative equity, depending on the particular circumstances of the purchase. However, qualification for the extension of mortgage interest tax relief is based on the commencement date of a qualifying home loan and not the equity status of the mortgage holder's home. Put simply, negative equity will not be a criterion for eligibility for tax relief on the interest payable on qualifying home loans.