Joe Carey (Clare, Fine Gael)
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138. To ask the Minister for Finance the way in which his Department defines "drawdown" for the purposes of the help to buy incentive; and if he will make a statement on the matter. [38129/16]

Michael Noonan (Limerick City, Fine Gael)
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To be eligible to apply for the Help to Buy incentive, a first-time buyer must have signed a contract to purchase a new build property on or after the 19th July 2016. In the case of a self-build home, they must have drawn down the first tranche of the relevant mortgage on or after that date. The full conditions of the scheme and its commencement remain subject to the approval of Finance Bill 2016 by the Oireachtas.

The date of 19 July was chosen as this was the date of the launch of 'Rebuilding Ireland: Action Plan for Housing and Homelessness' when the introduction of the incentive was initially announced. The backdating of this incentive was announced at that time with a view to avoiding any potential interruption in house sales, by purchasers who may otherwise have deferred purchases, pending the announcement of full details of the incentive.

In relation to the use of the word drawdown, the Revenue Commissioners will follow the standard meaning of mortgage drawdown as it is applied by the financial lending institutions. As transfers of mortgage funds are conducted electronically, a mortgage is deemed to have been drawn down as soon as the relevant funds are debited from the individual's mortgage account. This is also the point from which the financial institution begins to calculate interest repayments on the loan. These principles are the ones that will be followed by the Revenue Commissioners with regard to calculating the relevant date for eligibility for a rebate of income tax under the Help to Buy incentive.