Jack Chambers (Dublin West, Fianna Fail)
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163. To ask the Minister for Finance if the new first time buyers scheme announced in budget 2017 is to be made applicable to persons who signed contracts on new homes before 19 July 2016 but only close the sale after 19 July 2016; the position on this matter; and if he will make a statement on the matter. [31620/16]

Michael McGrath (Cork South Central, Fianna Fail)
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176. To ask the Minister for Finance to outline the way the help-to-buy tax rebate for first time buyers will be reckoned in full in the calculation of the deposit required in view of the fact that one of the requirements laid down by the Revenue Commissioners is that mortgage approval details are made available, including loan-to-value ratio, in order to obtain the rebate; and if he will make a statement on the matter. [31746/16]

Michael McGrath (Cork South Central, Fianna Fail)
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177. To ask the Minister for Finance when, in the process of buying a newly built house, a first time buyer will receive the help-to-buy tax rebate; if it will be when the deposit is placed or when the contract to buy the home is signed; and if he will make a statement on the matter. [31747/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 163, 176 and 177 together.

To be eligible for the Help to Buy scheme, a first-time buyer must sign a contract to purchase a new residence on or after 19 July 2016 and on or before 31 December 2019.  In the case of a person constructing a new residence on their own behalf (self-build), the first-time buyer must draw down the first tranche of the relevant mortgage loan on or after 19 July 2016 and on or before 31 December 2019.  The date of 19 July was chosen as it was the date of the launch of 'Rebuilding Ireland: Action Plan for Housing and Homelessness'.  The backdating of the incentive was announced at that time with a view to avoiding any potential interruption in the housing market while purchasers waited for details of the scheme.

I am advised by Revenue that the process for a first-time purchaser will involve two stages. There will be an initial Application, followed subsequently by a Claim for Rebate. In making the initial Application, it is anticipated that a person who intends to avail of the scheme may not yet have made his or her final decision regarding the particular residence he or she wishes to purchase or the choice of lending institution. In order to facilitate first-time buyers in making those decisions, Revenue will, following receipt of an Application, and subject to the applicant satisfying the terms of the scheme, notify the applicant of the maximum tax rebate that may be available to them. The prospective purchaser will then be able to share this information with a lending institution when negotiating a loan.

When the purchaser has determined the choice of residence and negotiated their mortgage, they can complete their Claim for Rebate.  At that stage, they will be in a position to provide Revenue with details of the property, the purchase price and the mortgage approval.  A key requirement is that the minimum loan-to-value ratio of 70% must be observed. As part of the Claim for Rebate process, the vendor will be required to confirm to Revenue the details of the contract to enable the payment of the rebate to be made.  In the case of a self-build, the solicitor acting on behalf of the first-time buyer will be required to make the necessary confirmation to Revenue.

I am further advised by Revenue that the payment process for the tax rebate will vary depending on the circumstances of the first-time purchaser as set out hereunder:

- In the case of contracts to purchase a newly built residence entered into in the period from 19 July 2016 to 31 December 2016, the tax rebate will be paid directly to the first-time buyer after the Revenue online system comes on stream in January 2017.

- In all other cases involving contracts for the purchase of a newly built residence, the tax rebate will be paid directly to the vendor and will form part of the deposit required from the purchaser.  This will be treated by the vendor as a credit against the purchase price of the residence.

- In the case of a self-builds, the tax rebate will available to the first-time buyer after he/she or they draw down the first tranche of the mortgage loan entered into to finance the construction of the residence. Where this occurs in the period from 19 July 2016 to 31 December 2016, the rebate will become available once the Revenue online system comes on stream in January 2017.