Barry Ward (Dún Laoghaire, Fine Gael)
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172. To ask the Minister for Finance if any consideration has been given to carrying out a review of the help-to-buy scheme that would allow couples (details supplied) to qualify for supports; and if he will make a statement on the matter. [7049/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.

The legislation governing the HTB scheme is set out in section 477C of the Taxes Consolidation Act 1997 and outlines the definitions and conditions that apply to the HTB scheme.

Section 477C (6) provides that prior to making a claim, an individual must make an application confirming he or she meets various conditions specified in the legislation, including that he or she is a first-time purchaser.

Section 477C (1) defines the term “first-time purchaser” for the purposes of the HTB scheme as being “an individual who, at the time of making a claim under the scheme, has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling”.

Furthermore, the loan-to-value ratio test provided for by section 477C(11) and the definition of a qualifying loan both provide that, where more than one individual is involved in purchasing or building a qualifying residence, all of the individuals must be first-time buyers.

The loan-to-value ratio in respect of a HTB claim shall not be less than 70 per cent and is calculated with reference to the “qualifying loan” amount associated with the purchase of the qualifying residence or self-build qualifying residence. Section 477C(1) states that a “qualifying loan” is a loan which “is entered into solely between a first-time purchaser and a qualifying lender (but this does not exclude a loan to which a guarantor is a party).”

In the circumstances of the details provided, where a married couple obtain a mortgage in relation to a qualifying residence or a qualifying self-build residence, it is not possible under current legislation for a spouse who fulfils the definition of a first time buyer to claim HTB where the other spouse is not a first time buyer.

However, there is an exception to this criteria where a first-time buyer is required to have a guarantor on the mortgage (who is not a first-time buyer), the first-time buyer will still be eligible for HTB where all the other conditions are met.