ConsumerValue: Tax Reliefs and Tax Credits
6. Mortgage Interest Relief
In the past, Mortgage Interest Relief was given directly to you by the Revenue Commissioners. Since 2002, your mortgage lender gives you the benefit of tax relief on mortgage interest paid.
This means your mortgage lender reduces your mortgage repayment by the amount of tax relief you are entitled to. Your mortgage lender then in turn claims this tax relief from the Revenue Commissioners.
Any amendments in this tax relief - for example, if there is a change in interest rates - are made automatically by your lender on behalf of the Revenue Commissioners.
You do not claim Mortgage Interest Relief in an annual tax return, because it is given directly to you by your mortgage lender.
Tax relief can still be claimed from your tax office for interest paid on "non-secured" loans used for qualifying purposes.
To qualify for tax relief on mortgage interest repayments the interest must relate to money that you have borrowed to purchase, repair or improve your sole or main residence. Relief is also subject to upper limits, which will depend on your personal situation and whether you are a first time buyer.