Mortgage interest relief has had several lives in Ireland. Most homeowners know the original scheme ended years ago, but fewer are aware of the temporary tax credit introduced in Budget 2024 that may entitle them to a refund for 2023 and 2024 interest payments. Here is the complete picture.
The Original Mortgage Interest Relief (TRS)
Mortgage interest relief — formally called Tax Relief at Source (TRS) — was a tax incentive that allowed homeowners to claim back a portion of the interest paid on their mortgage. Rather than claiming a deduction at year end, relief was given at source, meaning it was automatically deducted from your monthly mortgage payment by the lender on behalf of Revenue.
How TRS Worked
The relief reduced the gross interest portion of your monthly repayment. If your monthly interest charge was €800 and you qualified for relief at 15%, your effective interest payment was reduced to €680 — the bank collected the lower amount and Revenue compensated the bank for the difference. You benefited automatically without filing a claim.
Who Qualified
TRS applied to:
- Mortgages drawn down between 1 January 2004 and 31 December 2012
- Owner-occupied principal private residences only — buy-to-let and investment properties did not qualify
- Both first-time buyers and non-first-time buyers, with different rates
Historical Relief Rates
Relief rates depended on whether you were a first-time buyer, how many years you had held the mortgage, and your marital status. First-time buyers received higher relief for the first seven years. Non-first-time buyers received a lower flat rate.
The scheme was phased down over time and fully discontinued:
- New applicants: Scheme closed from 1 January 2013
- Existing recipients: Relief continued (at reduced rates) until 31 December 2020, when it ended completely for everyone
Who Still Qualifies for Original TRS?
Nobody — TRS has fully ended. The final payments were made in December 2020. If you purchased between 2004 and 2012 and were receiving TRS, it stopped over four years ago. There is no mechanism to claim it retrospectively.
The Temporary Mortgage Interest Tax Credit (2023 and 2024)
This is the relief that many homeowners are currently unaware of, and it is worth checking carefully.
In Budget 2024 (announced October 2023), the government introduced a once-off temporary mortgage interest tax credit for the 2023 tax year. It was subsequently extended to cover the 2024 tax year in Budget 2025.
Who Qualifies
To qualify for the temporary credit, all of the following must apply:
- The property is your principal private residence
- Your outstanding mortgage balance was between €80,000 and €500,000 on 31 December 2022
- You paid more mortgage interest in 2023 than in 2022 (i.e. your rate rose — which it did for almost all variable-rate and tracker borrowers as the ECB raised rates)
How Much Can You Claim?
The relief is calculated as 20% of the increase in interest you paid compared to the previous year, capped at a maximum of €1,250 per property (€2,500 for jointly assessed couples sharing one mortgage).
Example: If you paid €6,000 interest in 2022 and €8,500 in 2023, the increase is €2,500. Relief at 20% = €500 tax credit.
Example at the cap: If you paid €5,000 interest in 2022 and €12,500 in 2023, the increase is €7,500. 20% of €7,500 = €1,500 — but capped at €1,250, so you claim €1,250.
This is a tax credit, not a deduction, so it reduces your tax bill euro for euro rather than reducing your taxable income.
How to Claim
- Gather your mortgage interest certificates from your lender for both 2022 and 2023 (and 2024 for the extended credit). Lenders issue these annually — if you haven’t received one, contact your lender’s mortgage department.
- Log in to myAccount on Revenue.ie
- Go to PAYE Services → Review your tax 2022–2025
- Select the relevant tax year and claim the Mortgage Interest Relief credit under the credits section
- Revenue will calculate the credit and issue a refund or reduce any underpayment
The process takes approximately 5–10 minutes online. Refunds are typically processed within 5 working days.
The 2024 Extension
Budget 2025 extended the same credit to the 2024 tax year under the same qualifying conditions (outstanding balance between €80,000 and €500,000 on 31 December 2022, higher interest in 2024 than in 2022). Claims for 2024 can be submitted from January 2025 onward through myAccount.
There is no confirmed extension beyond 2024 — this is explicitly a temporary measure tied to the ECB rate-rise cycle.
Current Alternatives: Reducing Your Mortgage Costs Today
If you do not qualify for TRS and want to reduce what you are paying, the most impactful options are:
Switch Lender or Rate
The single biggest opportunity for most Irish homeowners is switching to a better rate. Irish variable rates have been among the highest in Europe. If you are sitting on a lender’s standard variable rate:
- Get quotes from AIB, Bank of Ireland, Haven, ICS, Avant Money, and Permanent TSB
- Use a mortgage broker to compare the full market
- Moving from 4.5% variable to 3.5% fixed on a €250,000 balance saves approximately €125/month
Switching costs are modest (legal fees typically €1,000–€1,500) and most lenders offer cashback of €1,500–€2,000 to cover them.
Overpay Your Mortgage
Extra capital payments reduce your balance and, therefore, the interest charged on future months. Even €200–€300 extra per month compounded over 15–20 years saves tens of thousands in interest. Confirm with your lender that overpayments are applied directly to principal and that there is no penalty.
Review Your Fixed Rate at Rollover
When a fixed rate expires, you revert to the lender’s standard variable rate unless you actively refix. This rollover moment is your opportunity to negotiate or switch. Do not let it pass without comparing the market.
Government Schemes for New Buyers
If you are buying rather than on an existing mortgage:
- Help to Buy (HTB): Tax rebate of up to €30,000 on new builds for first-time buyers
- First Home Scheme: Shared equity to bridge the deposit gap on new builds
- Local Authority Home Loan: Fixed-rate government-backed lending for those who cannot get a commercial mortgage
Key Takeaways
| Original TRS | Temporary 2023–2024 Credit | |
|---|---|---|
| Mortgages covered | Drawn down 2004–2012 | Outstanding balance €80k–€500k on 31 Dec 2022 |
| Property type | Owner-occupied only | Principal private residence only |
| Status | Fully ended December 2020 | 2023 and 2024 tax years — claim via myAccount |
| Maximum relief | Varied by year and status | €1,250/year (€2,500 jointly assessed) |
| How to claim | Automatic (TRS) — now closed | Self-service via Revenue myAccount |
The temporary 2023–2024 credit is the actionable item for most current homeowners. If your mortgage rate rose between 2022 and 2024 and your balance was in the qualifying range, it is worth 15 minutes on Revenue’s myAccount to check your entitlement.
See also: How Mortgage Interest is Calculated | Mortgage Rates Ireland 2026 | Switching Your Mortgage in Ireland | Mortgage Overpayment Ireland | Fixed vs Variable Rate Mortgage