Catherine Murphy (Kildare North, Independent)
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Question 37: To ask the Minister for Finance the rationale behind limiting the 30% mortgage or qualifying loan interest relief package included in the Finance Bill 2012, to mortgages or loans purchased between 2004 and 2008; if figures pertaining to the cost to the State of extending the facility beyond the period specified are available and if he will provide them to Dáil Éireann; if alternative, graduated rates were considered by him prior to announcing the increased rate in December 2011; and if he will make a statement on the matter. [9885/12]

Michael Noonan (Limerick City, Fine Gael)
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The position is as I stated in my Budget day speech, that the Government has now fulfilled its commitment contained in the Programme for Government to increase the rate of mortgage interest relief to 30 per cent for first-time buyers who took out their first mortgage in the period 2004 to 2008. Statistics from the Department of Environment, Community and Local Government show that national average house prices (including apartments) rose significantly in the period 2004 to 2008, reaching a peak in the second quarter of 2007. I believe that people who purchased during this period would most benefit from an increase in mortgage interest relief. I have sought to be as flexible as possible within the constraints pertaining. Under the current tax legislation mortgage interest relief is granted from the date the first mortgage interest payment is made. The legislation is being amended in the Finance Bill for this particular measure to also include mortgage draw-down as a qualifying event for the rate increase. This means that a mortgage holder will qualify for the increased rate if they made their first mortgage interest payment in the period 2004 to 2008 or if they drew down their mortgage in that period.

Therefore, an individual who drew down their mortgage in December 2003 but made their first mortgage interest repayment in 2004 will qualify for the increased relief. Also, an individual who drew down their mortgage in December 2008 but did not make their first mortgage repayment until 2009 will also qualify.

I do not have costs available for extending the period beyond the period 2004-2008 set out in the Programme for Government. In advance of the Budget I considered the rates which were outlined in the Programme for Government.