Budget 2025: Mortgage holders to get €1,250 back if tax relief scheme is extended
Extend 2025 Into Wishes Interest Jack Relief Istock Mortgage To Finance Chambers Picture: Minister
Mortgage holders are in line for up to €1,250 back in their pockets, as Finance Minister Jack Chambers is due to bring forward proposals to extend interest relief for a further year in Budget 2025.
Fianna Fáil is pressing to continue the relief into next year, with the party aiming to assist families who have faced higher mortgage repayments due to the series of interest rate hikes in a short space of time.
A Fianna Fáil source said: “This has been an important measure for thousands of households struggling with sky-high interest rates while at the same time juggling other cost of living challenges.
“Inflation is coming down but interest rates have remained elevated this year compared with 2022 so this is an effective measure for many households who faced steep increases in their mortgage repayments in recent times.”
The source added that it is “important” for the measure to be continued, due to the ongoing issues surrounding the cost of living.
Mortgage interest relief was initially introduced last year by then finance minister Michael McGrath as a one-year measure.
Mr Chambers is set to recommend to the three coalition leaders that the measure be extended for a further year, with relief due to be based on the increase in interest paid in 2024 compared to the interest paid in 2022.
The relief is provided at the standard rate of income tax with mortgage holders required to file an income tax return as well as proof of interest rate increases.
Since being introduced, more than 25,000 mortgage holders have claimed the relief, but it is understood that there are many households eligible who are yet to submit a claim.
Households eligible for the scheme must have an outstanding mortgage balance of between €80,000 and €500,000 as of December 31, 2022.
It is expected that many of the key items in the budget will be hammered out on Thursday when both Mr Chambers and Public Expenditure Minister Paschal Donohoe hold a series of meetings with their Cabinet colleagues who each has a wish list of demands.