Mortgage Interest Relief (Tax Relief at Source - TRS)

What is a qualifying mortgage loan?

A qualifying mortgage loan is a loan secured by the mortgage of freehold or leasehold estate, or interest in a principal private residence. 

A qualifying mortgage loan may be:

  • a new mortgage
  • a top-up loan used to develop or improve the home
  • a separate home loan used to develop or improve the home
  • a re-mortgage or a consolidation of existing loans. 

Examples of qualifying mortgage loans

Qualifying mortgage loans are loans used for the purpose of:

  • purchasing your home
  • extensions or purchasing or constructing a
    • garage
    • garden shed
    • greenhouse
    • swimming pool
    • tennis court
  • constructing a driveway or path
  • conversions
  • installing central heating
  • rewiring and plumbing (including bathroom suites)
  • replacing windows and double glazing
  • purchasing and installing bedroom and kitchen units which are affixed to and become part of the building
  • purchasing and installing burglar or fire alarms
  • the installation and treatment for damp, dry rot and woodworm
  • landscaping gardens (including garden walls)
  • payments to group water and sewerage schemes
  • purchasing another person's part interest in the home
  • legal fees and other fees related to purchasing or developing your home
  • Stamp Duty on the purchase of your home. 

How is the relief granted on a qualifying mortgage loan?

Your lender grants tax relief for a qualifying mortgage loan directly through the Tax Relief at Source (TRS) scheme. The TRS system applies to secured home loans – these are loans secured by the mortgage of freehold or leasehold estate or interest in a principal private residence. The lender gives the relief by either reducing your monthly mortgage payment or as a credit back into your mortgage funding account.

How is the relief granted on other qualifying home loans?

You can claim tax relief through your Revenue Office for a home loan that is:

  • not secured on the title deeds of the home
  • secured on a property other than your home.

The relief, in this instance, is paid through the tax system by:

  • a review at the end of the tax year or
  • a relief shown on the certificate of tax credits during the tax year.

Next: Do you qualify for Mortgage Interest Relief?