Mortgage Interest Supplement

Information

Mortgage Interest Supplement provides short-term support to help you pay your mortgage interest repayments. Your interest is assessed as your gross monthly interest less mortgage interest relief and any mortgage allowance or mortgage subsidy payable towards the interest part of your mortgage by the local authority.

You will only get assistance with the interest portion of your mortgage repayments. You will not get help with the portion that pays off the actual loan and house insurance. You should contact your lender to discuss repaying the actual loan. Our document on mortgage debt describes what you can do if you are faced with arrears on your mortgage.

If you have a consolidated loan, only the interest portion of your loan that relates to the essential purchase, repair or maintenance of your home will be taken into account.

Budget 2012

It was announced in Budget 2012 that the minimum contribution towards Mortgage Interest Supplement will increase.

The minimum contribution for the purposes of the Mortgage Interest Supplement scheme increased by €6 to €30 per week for a single person from 1 January 2012. The minimum contribution payable by couples is €35 per week.

People getting Mortgage Interest Supplement may qualify for a waiver from the €100 Household Charge. To be eligible for the waiver you must be getting MIS on the liability date, which is 1 January each year.

Payment of Mortgage Interest Supplement will be deferred for 12 months while the person engages with the Mortgage Arrears Resolution Process under the Central Bank’s Code of Conduct on Mortgage Arrears. This approach is consistent with the reports of the Mortgage Arrears and Personal Debt Group and the Inter-Departmental Working Group on Mortgage Arrears. This provision is not yet in force.

Rules

To get Mortgage Interest Supplement you must meet the following conditions:

  • When you began your mortgage, you could afford the repayments
  • Your house is not up for sale
  • The amount of your mortgage interest payable is not more than an amount considered reasonable to meet your residential and other needs
  • Only the portion of your loan that relates to the essential purchase, repair or maintenance of your home is taken into account
  • It is reasonable to award mortgage interest supplement having regard to any arrears on the loan
  • You are habitually resident in this State

You won’t qualify for Mortgage Interest Supplement if:

  • You or your spouse/civil partner/cohabitant works more than 30 hours a week (for exceptions to this rule - see ‘Employment and Mortgage Interest Supplement' below)
  • You are involved in a trade dispute
  • You are attending full-time education (for exceptions to this rule - see 'Education and Mortgage Interest Supplement' below)
  • You are unlawfully in the State
  • You have made an application for asylum under the Refugee Act, 1996 and such application is awaiting final decision by the Minister for Justice and Equality
  • You have made an application under the Aliens Act, 1935 to remain in the State and such application has not been determined
  • You are admitted to an institution (for example, a hospital) for a period of in excess of 13 weeks

Employment and Mortgage Interest Supplement

You will not qualify for Mortgage Interest Supplement if you are in full-time employment. That is, employment for 30 hours per week or more. (In the case of couples, if one of a couple is in full time employment, both are excluded from claiming Mortgage Interest Supplement). However, there are special retention arrangements that may allow you to keep a proportion of your Mortgage Interest Supplement.

For example, if you are participating in a Community Employment Scheme or getting a Back to Work Allowance or Back to Work Enterprise Allowance. Your gross household income must not exceed €317.43 per week.

Back to Work Allowance, Back to Work Enterprise Allowance, Family Income Supplement (FIS), PRSI, reasonable travel expenses and any childcare allowance payable on certain FÁS training courses is not taken into account in the assessment of your gross household income.

Under these special retention arrangements you will continue to get 75% of your Mortgage Interest Supplement rate during your first year in employment, 50% in the second year and 25% in the third and fourth year. After the fourth year you will no longer be entitled to Mortgage Interest Supplement if you are in employment.

These retention arrangements also apply to people who have been unemployed for 12 months or more and who return to full-time employment and sign off their social welfare payment. In these cases gross household income must not exceed €317.43 per week.

Education and Mortgage Interest Supplement

You won’t qualify for Mortgage Interest Supplement if you are attending full-time education. However, if you are getting Mortgage Interest Supplement and qualify for the Back to Education Allowance (BTEA), you will keep an entitlement to Mortgage Interest Supplement. You will be means-tested and if you changed from a reduced social welfare payment to the standard BTEA rate it will affect the amount of supplement you get.

Means test for Mortgage Interest Supplement

When you apply for Mortgage Interest Supplement your means will be assessed. This will show how much of the mortgage interest you are able to pay. A means test examines all your sources of income. However, some income is not taken into account in the calculation of your means. You may qualify for Mortgage Interest Supplement if your income is below a certain amount and you meet the other conditions - see 'Rules' above.

Income taken into account for Mortgage Interest Supplement

  • Net income from employment (this is gross income less PRSI and reasonable travel expenses. A child dependant aged 17 and under in full-time education will not have their income from employment taken into account for Mortgage Interest Supplement.)
  • Social welfare payments (there are some exceptions - see 'Income not taken into account' below)
  • Family Income Supplement
  • Cash income (for example, maintenance)
  • All income and the value of all property of which you may have deprived yourself in order to qualify
  • Capital (for example, savings, investments and property but not your own home)

The capital value of property (except your own home), savings and investments are assessed on a weekly basis as follows:

Capital Weekly means assessed as
First €5,000 Nil
Next €10,000 €1 per €1,000
Next €25,000 €2 per €1,000
Any capital over €40,000 €4 per €1,000

Redundancy payments

A redundancy or lump sum payment will be assessed as capital, unless it has been used to reduce the balance of your mortgage or other outstanding loans.

Income not taken into account when calculating Mortgage Interest Supplement

When calculating your Mortgage Interest Supplement,the following income is not taken into account:

  • An amount equal to the Supplementary Welfare Allowance (SWA) rate for your household circumstances
  • Child Benefit
  • Mobility Allowance
  • Foster care payments from the Health Service Executive (HSE)
  • Payments for accommodating children under the Child Care Act
  • Income from Gaeltacht students
  • Grants or allowances from schemes promoting the welfare of blind people
  • Money received from charitable organisations, for example, St Vincent de Paul
  • Compensation awarded by the Compensation Tribunal in respect of Hepatitis C contracted from certain blood products, to those who have disabilities caused by Thalidomide and to those receiving compensation under the Residential Institutions Redress Board
  • Maintenance grants paid by VECs or local authorities for educational purposes (now replaced by the Student Grant Scheme)
  • Domiciliary Care Allowance
  • Respite Care Grant
  • Guardian's Payment (Contributory) and Guardian's Payment (Non-Contributory)
  • Fuel Allowance and the Living Alone Allowance
  • Pensioners: If you are aged 65 or over (or where one of a couple is of pensionable age) and have a combined household income greater than the rate of SWA appropriate to your household circumstances, the difference between the maximum rate of State Pension (Contributory) appropriate to your circumstance and the rate of SWA appropriate to your circumstances is not taken into account.
  • Carers' payments: The half-rate Carer's Allowance is never taken into account.
  • If you are getting Carer's Allowance, the amount of Carer's Allowance above the appropriate SWA rate for your situation (either the qualified adult rate for a couple or the personal rate of SWA) is not taken into account. So if you are one of a couple and getting Carer's Allowance the amount of Carer's Allowance being paid less the SWA qualified adult rate is not taken into account and if you are single or a lone parent the amount disregarded is the rate of Carer's Allowance being paid less the personal rate of SWA.
  • Any amount of Carer's Benefit in excess of the basic SWA rate for your situation (either the qualified adult rate or the personal rate of SWA) is not taken into account.
  • Rehabilitative earnings disregard: A certain amount of your income from rehabilitative work is not taken into account. If you are getting Disability Allowance or Blind Pension, €120 from rehabilitative training or employment is not taken into account in the assessment for Mortgage Interest Supplement. Any earnings over €120 from rehabilitative training or employment will affect your Mortgage Interest Supplement. If you are earning above €120 you can be assessed using whichever disregard is most in your interest - either the Rehabilitative earnings disregard or the Household income disregard (but not both).
  • Household income disregard: A certain amount of your household income is not taken into account. €75 of any additional household income* is not taken into account. Also, 25% of additional household income over €75 is not taken into account. There is no upper limit on the amount that can be disregarded.

*Additional household income is income from part-time employment or part-time self-employment, Family Income Supplement, Community Employment (CE), Back to Work Allowance, Back to Enterprise Allowance or FÁS course. Maintenance is also assessed as additional household income (see below).

Maintenance and Mortgage Interest Supplement

Maintenance is assessed as additional household income (see above) and maintenance payments up to €95.23 per week are assessed in full. The household income disregard (see above) applies to maintenance payments above this amount. For example, if your only additional household income is maintenance, all of your maintenance payment up to €95.23 per week is assessed in full. The household income disregard of €75 applies to sums above this, so that any maintenance between €95.23 and €170.23 is not taken into account. 25% of all maintenance over €170.23 is also not taken into account.

Your contribution to mortgage interest (Household Contribution)

You must pay at least €30 towards your mortgage interest. You may pay more than €30 because you must also contribute any means you have towards your mortgage interest. If you are one of a couple and are claiming Mortgage Interest Supplement you must pay at least €35 towards your mortgage interest.

Rates

Calculating Mortgage Interest Supplement

Calculating your Mortgage Interest Supplement can be difficult. The Department of Social Protection's representative (formerly known as the Community Welfare Officer) in your local health centre decides whether you are eligible for Mortgage Interest Supplement and calculates the amount you get.

The Department's representative adds together any income taken into account in the means test for Mortgage Interest Supplement. They then subtract any income not taken into account. Your remaining income and Household Contribution are added together to find your contribution to your mortgage interest - see 'Means test' above. Find out more about Calculating Mortgage Interest Supplement.

The Mortgage Interest Supplement payable to you is the difference between your actual mortgage interest and your contribution to mortgage interest, as long as the difference between the two is a reasonable amount to meet your residential needs. The maximum rent limits set out for Rent Supplement may be used as a guide to decide what a reasonable amount is.

Generally the Department's representative will ensure that your income after paying the interest on your mortgage does not fall below a minimum level. This level is the Supplementary Welfare Allowance minus €30 (€35 for couples).

How to apply

To apply, fill in an application form for Mortgage Interest Supplement (pdf). Part of the form will need to be filled in by your lending agency. You will also need to fill in a separate Supplementary Welfare Allowance application form (pdf). This form is used to gather extra details relevant to your application.The Department of Social Protection's representative (formerly known as the Community Welfare Officer) or your local Citizens Information Service can help you fill in these forms.

The type of documents you need to bring include:

  • Identity documents for you and your dependents, such as full Birth Certificates, passports, driving license, work permit, immigration (GNIB) card
  • Documents to show your income and financial situation, such as pay slips, P45, P35, P60, bank statements
  • Documents to prove where you live, such as electricity, gas or phone bills
  • Documents to prove you have a mortgage and your ownership of the property, such as loan application, loan offer, solicitors letter and other documents that may be requested.

You can get a complete list of the documents you may need when applying for Mortgage Interest Supplement. The Department's representative will usually visit you to confirm your circumstances.

Appealing a decision

If you are not satisfied with a decision made in relation to Mortgage Interest Supplement, first find out why the decision was made by asking the Department of Social Protection's representative (formerly known as the Community Welfare Officer), who will give you the reasons in writing. You should provide any extra documentation to back up your case.

If the decision is not changed, ask for an appeal form. Put in as much detail as possible and keep photocopies of everything. If your appeal is not successful, you are entitled to have the appeal referred to the Social Welfare Appeals Office. You can ask for a face-to-face hearing and you can bring along a representative to help you argue your case.

Where to apply

To apply for Mortgage Interest Supplement contact the Department of Social Protection's representative (formerly known as the Community Welfare Officer) at your local health centre.

Further information

The new income disregards came into effect on 5 June 2007. Claims made before 5 June 2007 were assessed using the old income disregards (see below).

All existing Mortgage Interest Supplement claims in payment on 5 June 2007 will be reviewed and assessed using both the current income diregards and the old income disregards. If you would get more Mortgage Interest Supplement using the old income disregards, you will continue to be assessed using the old rules until a change in circumstances triggers a review. A change in circumstances would include, for example a change in household income or a break in your claim for more than 13 weeks.

Income disregards for Mortgage Interest Supplement claims before 5 June 2007.

Income from the following sources was not taken into account in the assessment of Mortgage Interest Supplement claims made before 5 June 2007:

  • Family Income Supplement
  • Child Benefit
  • Mobility Allowance
  • Foster care payments from the Health Service Executive
  • Payments for accommodating children under the Child Care Act
  • Income from Gaeltacht students
  • Grants or allowances from schemes promoting the welfare of blind people
  • Money received from charitable organizations, for example, St Vincent de Paul
  • Compensation awarded by the Compensation Tribunal in respect of Hepatitis C contracted from certain blood products, to those who have disabilities caused by Thalidomide and to those receiving compensation under the Residential Institutions Redress Board
  • Maintenance grants paid by Local Authorities for Higher Education
  • €60 of additional income from part-time employment, including Community Employment Schemes. If your earnings from employment are between €60 and €90 only half of your earnings between €60 and €90 is taken into account. (For example, if you are earning €90 only €15 is taken into account)
  • €60 of additional income from participation in approved training courses, for example, FÁS skills training courses. If your earnings are between €60 and €90 only half of your earnings between €60 and €90 is taken into account. For example, if you are earning €90 only €15 is taken into account
  • €120 from rehabilitative training or employment if you are in receipt of Disability Allowance. Any earnings over €120 from rehabilitative training or employment will affect your Rent Supplement
  • If you are on a One-Parent Family Payment, up to €95.23 of maintenance payments is deemed to be for rent. Half of any amount above this is taken into account as means, and will affect your One-Parent Family Payment. The first €95.23 of any maintenance you receive is taken into account when calculating your Rent Supplement, but maintenance above €95.23 euro up to a limit of €155.23 is disregarded. Half of any maintenance you get between €155.23 and €185.23 is taken into account. All maintenance above €185.23 is taken into account when calculating your Rent Supplement.
  • Income from employment with the HSE as a Home-Help
  • Domiciliary Care Allowance
Page updated: 8 May 2012

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