Mortgage interest relief for first-time buyers is unlikely to be abolished in June as proposed in the Programme for Government.
This means that first-time buyers will have until the end of the year to claim the relief, which is worth around €30,000 over the first seven years of the mortgage.
The Programme for Government included a plan to scrap mortgage interest relief for first time buyers from June and target the money towards those who bought at the height of the boom.
Any changes to mortgage interest relief would have to be introduced in a Finance Bill and while the government is planning a jobs mini-budget after its first 100 days, it's understood this proposal will be pushed out until the end of the year.
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A spokesman for the department of finance said no decision had been made yet.
Any decision to defer the abolition of the interest relief will be welcomed by first time buyers who over a seven year period could receive a maximum of €31,500 in mortgage interest relief.
"While the decision to purchase a home should not be based on availing of this relief, receiving it can make life a little easier." said Mr. Frank Conway, Director with moneycoach.ie.
The first time buyer market currently accounts for approximately 40% of all mortgages drawn down according to the Irish Banking Federation).
