3 Ways for Homeowners and Renters in Ireland to Save BIG in 2023!

Taxback has launched a new mortgage switcher sevice to help you to save even more money this year!

With the cost of living on the rise, we could all use a little extra money in our pocket.

Well the good news is that there are a number of quick wins that taxpayers can avail of in order to improve their financial situation in 2023.

Below we share our top three financial tips for homeowners and renters.

1 – €500 waiting for renters!

A new Rent Tax Credit was introduced in October’s Budget announcement. Under the scheme, people that pay for rented accommodation will be entitled to benefit. So, if you pay to rent your home you can claim €500 per tax year. Meanwhile, married couples are due €1,000.

You can also claim this credit if you are paying rent on behalf your child so that they can attend college.

This credit will be available for the 2022 to 2025 tax years inclusive. Meaning, if you paid rent last year, you can up 500 euro by simply claiming back this credit today!

Learn more about the Rent Tax Credit here.

2 – Home workers are leaving money on the table!

If you work from home, it’s likely that you will be entitled to tax back on your utility bills. In fact, this tax relief (also known as e-worker tax relief) is available on heating, electricity and broadband bills.

So how much tax can you claim?

The first thing you need to do is calculate the percentage of the business year that you spent working from home. Next, you must divide your total utility (heating, electricity and broadband) bills by this percentage.

You will then be able to claim tax relief at your marginal rate (20% or 40%) on 30% of the remaining figure.

3 – Switch your mortgage!

How would you like to knock €20,000 off your mortgage?

Taxback have partnered with a leading mortgage provider to help you do just that!

Below we take a look at everything you need to know to save money on your mortgage repayments.

Why is it so important to shop around with your mortgage?

In short, it’s important to consider switching your mortgage provider because you may be able to save a lot of money.

And yet, the Irish are often reluctant to change their mortgage – switching approximately 50% less frequently than other Europeans.

This is primarily because of a lack of awareness around the process of switching, who can save and how much can be clawed back.

So how much money are we talking about here?

Well, believe it or not, most eligible homeowners can expect to save between €5,000 - €25,000.

Who can switch their mortgage in Ireland?

If you have taken out a mortgage after 2008 and you are no longer on an introductory rate and it is likely you will be able to save as much as €20,000 by switching.  

Meanwhile, more than half of all mortgage holders are entitled to save at least €5,000. 

However, it’s important to keep in mind that each bank has its own rules for accepting mortgage switchers. If your financial situation has disimproved since you secured your initial mortgage, you may encounter issues.

Although this is rare.

In most cases, your home will have increased in value and your loan value will have decreased – so even if your personal finances are not as strong as you would like them to be, you may still be able to save on your mortgage. 

Besides, even if your application is not accepted, you will not face any penalties from your current provider for attempting to switch… so there is nothing to lose by shopping around! 

You’ll probably also need to have roughly €40,000 left on your mortgage for a new bank to feel that switching is worth their while. The same logic applies if you only have a couple of years left on your mortgage. 

What’s more, if you have a fixed-rate agreement with your bank, you may incur a penalty charge if you switch out of your mortgage early. In other words, you may need to wait until the end of the agreed term before you switch.

On the other hand, the penalty you would be due to pay could be far less than the potential savings and this is worth considering too. 

How difficult is it to switch my mortgage?

Switching is nowhere near as taxing as the initial process of applying for a mortgage.

In fact, it's all very straightforward! Taxback has partnered with a leading independent mortgage broker specifically to help you switch your mortgage easily online.

And the best part? By using our new service, you can switch to a lower mortgage rate for free!

So why not let us handle all the paperwork and ensure you enjoy a stress-free switch?

What do I need to switch my mortgage?

When you are switching your mortgage, you will need to have a number of important documents/ pieces of information close on hand.

• Proof of identity (such as a passport or driving license
• Proof of address (a recent bill in your name will do the trick!)
• Your employment details
• You mortgage details – what do you owe on your existing mortgage? How many years remain in the term? And what is your current rate of interest? You will find all of this information on a recent mortgage statement
• The value of your home 
• You will also need to provide six months of statements for your current and savings accounts. If you have any loans or credit cards, you’ll need to provide statements for these also 

 Finally, it’s important to remember that when you switch your mortgage, you may need to make some adjustments to your mortgage protection policy.

How does it work?

With borrowing interest rates and tracker mortgages on the rise, now is the ideal time to shop around.

Ready to take the first step?

Schedule a call with Lisa from the Taxback team for a consultation. Lisa will walk you through the steps and confirm your eligibility before continuing with the process.

Book a call with Lisa

Once your eligibility is confirmed, the team will get to work to find you the best value on the market. They manage all the paperwork at no cost to you!

Banks that are eager for new business will often pay for home valuations and for homeowners to use the services of a broker or switching platform.

Why not check how much you could save on your mortgage?

Register for a free phone consultation here to get started!