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Explainer: Changes to mortgage interest relief

Finance Minister Michael Noonan has introduced changes to the mortgage interest relief available to buyers and home owners as part of next year’s Budget – but what does it mean?

READERS OF TheJournal.ie have raised questions about the Government’s alterations to mortgage interest relief offered to home owners – so we’ve put together and easy-to-read guide to fill you in on the changes.

Earlier this week, Finance Minister Michael Noonan announced plans to boost mortgage interest relief for both existing home owners and first-time buyers.

The changes will mean that:

  • Home owners who entered the property market between 2004 and 2008, at the height of the property bubble, will see interest relief on their mortgage payments rise to 30 per cent from the existing rate of between 20 and 22.5 per cent
  • Buyers entering the market for the first time in 2012 will receive 25 per cent interest relief on their payments
  • Non-first time buyers can secure interest relief of 15 per cent when purchasing a property next year

However, Noonan has warned that all mortgage interest relief will start to be phased out from the end of 2012 – and abolished entirely by 2018.

Noonan also introduced changes to capital gains tax in relation to any property purchased after between 9 December 2011 and the end of 2013: the gains on such properties will be exempt from the tax, providing they are held for seven years.

Read: Budget 2012: Help for first-time buyers – but it ‘won’t solve real problems’

In full: TheJournal.ie’s full coverage of Budget 2012

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11 Comments
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    Mute mrmeade
    Favourite mrmeade
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    Jan 1st 2017, 4:40 PM

    The world is going to wait until it’s too late to tackle this maniac.

    69
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    Mute Tweety McTweeter
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    Jan 1st 2017, 5:11 PM

    Something tells me that the international community doesn’t believe he is capable of what he says he is

    49
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    Mute B9xiRspG
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    Jan 1st 2017, 7:38 PM

    No oil so…..

    14
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    Mute Jason Culligan
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    Jan 1st 2017, 8:02 PM

    It has nothing to do with oil. America already sacrificed thousands of their own to protect South Korea. The issue is China and the fact that they’ve shown to be willing to fight to protect the North and their egomaniac leaders.

    10
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    Mute B9xiRspG
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    Jan 1st 2017, 8:27 PM

    @Jason Culligan: You are correct the North has China behind them but you still aren’t seeing the US doing much about the WOMD that the North has but it invaded Iraqi with obvious no proof of any WOMD but plenty of oil.

    17
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    Mute Hugh Mannatee
    Favourite Hugh Mannatee
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    Jan 1st 2017, 5:19 PM

    2nd lad in, first row from left. foot too low. Family shot.

    55
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    Mute David Thomas
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    Jan 1st 2017, 4:54 PM

    He’s obviously spent the army’s rifle money on nukes then.

    53
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    Mute Jason Culligan
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    Jan 1st 2017, 8:00 PM

    Under normal conditions I’d say that they’re parade rifles, much like the Americans who still use M1 and M14 rifles for marching. In North Korea though, where they have 1 million more soldiers than rifles, you’re probably spot on.

    11
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    Mute Samoa Snow
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    Jan 1st 2017, 4:17 PM

    Delighted, just the news we were waiting for

    31
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    Mute RJ.Fallon
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    Jan 1st 2017, 4:46 PM

    Look at all those robots dressed up as soldiers,wow.

    23
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    Mute O Swetenham
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    Jan 1st 2017, 5:23 PM

    I’d say they all blink in unison.

    15
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    Mute John Jones
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    Jan 1st 2017, 5:13 PM

    He’s only a mount like his auld fella

    18
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    Mute Paddy Lions
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    Jan 1st 2017, 5:42 PM

    Another loony state supported by SF/IRA.

    13
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    Mute Alois Irlmaier
    Favourite Alois Irlmaier
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    Jan 1st 2017, 7:00 PM

    @Paddy Lions: Why do you stick SF and IRA into everything you don’t like? If you hated Guinness, do you put SF or IRA into that as well?

    15
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    Mute eastsmer #IRExit
    Favourite eastsmer #IRExit
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    Jan 1st 2017, 7:55 PM

    @Paddy Lions: It’s 2017, make a resolution to grow up, PLEASE

    9
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    Mute Paddy Lions
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    Jan 1st 2017, 8:53 PM

    In 1986, the Sinn Fein Foreign Affairs Bureau sent a message of solidarity to the North Korean regime. The message, signed by Sile ni Dhara, stated clearly: “We offer our support to the Workers’ Party of Korea in its fight for the establishment of the Democratic Confederated Republic of Korea.” (“Sinn Fein Letter to Korea,” Ireland’s War, issue 18 (June 1986) p.7). Also, during a visit to Scandinavian countries in 1987, Gerry Adams attended a reception at the embassy of the Democratic People’s Republic of Korea on the occasion of the 75th birthday of Kim Il Sung. (“Gerry Adams visits Scandinavia”, Ireland’s War, issue 23 (July 1987), p.7) In 1989, an official Sinn Fein delegation including Gerry MacLochlainn, Sheena Campbell (later murdered in 1992 by loyalists) and John Doyle attended the World Youth Festival in Pyongyang (cfr “Sinn Fein Delegation at World Youth Festival”, An Phoblacht-Republican News, (vol.11 number 26), 29 June 1989 p.14).Alois Irlmaier:

    5
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    Mute HOTBank
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    Jan 1st 2017, 4:49 PM

    DPRK is the perfect socialist state form which we can learn

    11
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    Mute Roibeard O Beachain
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    Jan 1st 2017, 5:42 PM

    Yep. Were the masses starve, are interned or executed while the leader gourges on cheese, meat and booze

    28
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    Mute Eamonn O'Regan
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    Jan 1st 2017, 5:29 PM

    Kim has nukes on the brain,the poor lad. That’s what must have caused the hair loss.

    11
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    Mute winston smith
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    Jan 1st 2017, 5:46 PM

    Why do I think the Yanks must have this guy covered?…Can China pull Kim’s chain in at any moment but use him as a counter against the yanks especially since Trump is sabre rattling over Taiwan.

    9
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    Mute Eamonn O'Regan
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    Jan 1st 2017, 5:31 PM

    Kim has nukes on the brain,the poor lad. I bet that’s what caused his catastrophic hair loss.

    7
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    Mute Alois Irlmaier
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    Jan 1st 2017, 6:58 PM

    Kim is storing his farts now to power it? That is why it is taking so long?

    4
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    Mute John Brendan Mullen
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    Jan 1st 2017, 7:01 PM

    No harm. The threat of mutual annihilation seems to be the best way to stop the deployment of nuclear weapons. Let’s hope Iran gets there too asap to negate the imbalance created by Israeli nuclear capability. Maybe then they will start to act like a civilised nation

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    Mute Jason Culligan
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    Jan 1st 2017, 8:04 PM

    The problem is that North Korea seem incapable of understanding that point. They already picked a fight with the US once when America had nukes and their guardian angels the Chinese still hadn’t developed nuclear weapons of their own. North Korea is also constantly close to collapsing in on itself. The last thing you want is a civil war in a nuclear capable state.

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    Mute Marcus Bale
    Favourite Marcus Bale
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    Jan 1st 2017, 8:04 PM

    Some jowls on him the little fooker . Destroyed with the gout at this stage . Him and Donald J Trump be arm and arm skipping down the yellow brick road shortly .. soon as Donald builds one

    1
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