First Time Buyer Stamp Duty Exemption

If you are a first time buyer and you are lucky enough to secure a mortgage, you are exempted from paying any stamp duty on your house, whether you bought it from new or second hand.

If you have previously owned a property, even if it was abroad, or you have built your own house in the past, you will not qualify for stamp duty exemption.

The rate of stamp duty liable for non first time buyers purchasing second hand properties is 7 percent of the price over 125,000 euros, up to 875,000 euro and then the stamp duty rate rises to 9 percent on any excess above 1,000,00 euros.

If the property is being purchased by more than one person, stamp duty exemption will not apply unless each of them is a first time buyer.

Lenders may take into account overtime payments and/or bonuses, but an applicants basic salary is a crucial factor in the mortgages lenders decision to grant a loan.

Also the banks and mortgage providers may be likely to refuse applications from anybody not in the most secure sector of the job market, that is a government or semi state job. Ironically, those employed in the property sector, especially construction, are the most likely to be refused.

Currently however, some mortgage brokers are reporting a small rise in applications and enquiries about mortgages, as some potential buyers want to take advantage of low interest rates and lowered property prices. In mid 2009 both Allied Irish Banks and Bank of Ireland started a willingness to provide an extra 30 percent capacity for first time buyers.

It may be that many applications for mortgages from first time buyers are exploratory affairs, with first time buyers checking out what the mortgages lenders will and won’t offer them and also allowing first time buyers to get some experience of the mortgage process.

This article is only intended as a basic general summary and you should always seek professional advice where necessary.