Budget 2027 Ireland: 7 Key Changes for Homebuyers Copy
Budget 2027 Ireland brings several important changes for first-time buyers, existing homeowners and people considering switching their mortgage. From an increase in the Help to Buy scheme to changes in rental tax credits and mortgage interest relief, there are a number of updates worth knowing about.
Whether you’re buying your first home, planning your next move or reviewing your current mortgage, here’s what Budget 2027 could mean for you.
Budget 2027: Help to Buy Increases to €35,000
One of the biggest changes for first-time buyers is an increase to the Help to Buy scheme, with the maximum refund rising from €30,000 to €35,000 for qualifying purchases from 7 October 2026.
That means eligible first-time buyers could receive an additional €5,000 towards their deposit.
The amount you can claim is still limited to the lowest of:
- €35,000
- 10% of the property purchase price
- The amount of Income Tax and DIRT you have paid over the previous four years
To receive the full €35,000, you would therefore need to be purchasing a property worth at least €350,000 and have paid enough qualifying tax during the previous four years.
The main eligibility conditions remain unchanged. The property must be a new build or self-build, the maximum qualifying property value remains €500,000 and you generally need a mortgage of at least 70% of the purchase price.
For buyers in Dublin and other areas where new-build prices can exceed €500,000, the existing property price cap may still limit access to the scheme.
If Help to Buy does not work for the property you are considering, there may be other supports available, including the First Home Scheme.
You can find full eligibility information on Revenue’s Help to Buy scheme page.
If you’re starting your homebuying journey, our mortgage advisors at Halpin Wealth and Mortgages can help you understand the supports available and guide you through the mortgage process.
Rent Tax Credit Increases for 2027
There is also some extra support for people who are currently renting while saving towards a deposit.
From January 2027, the maximum Rent Tax Credit increases from:
- €1,000 to €1,150 per year for a single person
- €2,000 to €2,300 per year for a jointly assessed couple
That means an additional €150 per year for an individual or €300 for a jointly assessed couple.
While it may not dramatically change the cost of renting, every additional saving can help when you are trying to build a deposit.
If you are eligible and are not already claiming the Rent Tax Credit, it can be claimed through Revenue’s myAccount.
Mortgage Interest Tax Credit Ends After 2026
For existing mortgage holders, one important change is that the temporary Mortgage Interest Tax Credit has not been extended.
Based on the Budget 2027 measures announced, 2026 will be the final tax year covered by the credit, with eligible homeowners able to claim the 2026 credit in 2027.
The credit applied to qualifying mortgages with a balance of between €80,000 and €500,000 on 31 December 2022.
With this support coming to an end, it may be a good time to review your mortgage rate.
If your fixed mortgage rate is due to expire soon, or you are currently on a standard variable rate, there may be value in comparing your existing mortgage with the rates available from other lenders.
Depending on your mortgage balance and current interest rate, switching could potentially result in savings that are greater than the value of the tax credit.
At Halpin Wealth and Mortgages, we can help you explore your mortgage switching and refinancing options and assess whether a different mortgage could be suitable for your circumstances.
Rent-a-Room Relief Rises to €16,000
Budget 2027 also increases the amount homeowners can earn under Rent-a-Room Relief.
From January 2027, the annual limit rises from €14,000 to €16,000, equivalent to approximately €1,333 per month.
Qualifying homeowners can earn up to this amount from renting a room in their own home without paying Income Tax, USC or PRSI on the rental income.
For people who have recently purchased a home, this additional income could potentially help with mortgage repayments during the early years of homeownership.
Some mortgage lenders may also take rental income into consideration when assessing affordability, depending on the lender and circumstances.
Garden Rooms Can Now Qualify
Another change is the inclusion of certain detached garden accommodation under Rent-a-Room Relief.
Qualifying designated auxiliary dwellings measuring between 32 and 45 square metres can now fall within the relief, with the eligibility change backdated to 27 July 2026.
For homeowners with suitable space, this could provide an additional source of income, although the relevant planning and eligibility requirements must be met.
It is also important to keep an eye on the €16,000 Rent-a-Room Relief limit. If your qualifying rental income exceeds the limit, even by a small amount, the entire amount will generally become taxable rather than only the amount above €16,000.
No Stamp Duty Exemption for First-Time Buyers
Despite discussion ahead of Budget 2027 about a potential reduction or removal of stamp duty for first-time buyers, no exemption was introduced.
First-time buyers will therefore still need to factor stamp duty into the overall cost of purchasing a home.
Stamp duty is generally charged at 1% of the purchase price for residential properties valued at up to €1 million.
Alongside your deposit, it is important to budget for stamp duty, legal fees and the other costs associated with buying a property.
Other Budget 2027 Changes for Homeowners
There are a couple of other changes that could affect the wider housing market and household costs.
New 7% Derelict Property Tax
A new 7% Derelict Property Tax has been announced with the aim of encouraging owners of derelict properties to redevelop them or sell them.
Preliminary registers of derelict properties are expected from 1 September 2027, with the first payments due in 2028.
Over time, the measure is intended to help bring more unused properties back into the housing market.
Carbon Tax on Home Heating Reduced
Budget 2027 also includes a reduction in carbon tax on home heating oil and natural gas.
The rate is being reduced from €63.50 to €48.50 per tonne of CO₂, rather than increasing as previously planned.
The Government has also announced that these reduced rates will be maintained for its lifetime.
For households that rely on oil or natural gas for heating, this should provide some relief on household energy costs.
What Does Budget 2027 Mean for You?
The impact of Budget 2027 will depend on whether you’re purchasing your first home, moving property or reviewing an existing mortgage.
For first-time buyers
The increased Help to Buy refund and higher Rent Tax Credit provide some additional support. However, the €500,000 Help to Buy property cap remains unchanged and there is no new stamp duty exemption.
If you’re unsure where to start, you can also watch our free Mortgages Made Simple webinar, where Brian Cantwell, Head of Mortgages at HWM, explains the first-time buyer mortgage process, deposits, borrowing and available supports.
For second-time buyers and movers
The increase in Rent-a-Room Relief could provide an opportunity to generate additional tax-free income after purchasing a property, including through certain qualifying garden accommodation.
For existing homeowners and mortgage switchers
The end of the Mortgage Interest Tax Credit makes reviewing your mortgage rate increasingly important. If your fixed rate is coming to an end or you have not reviewed your mortgage in some time, it may be worth checking what alternatives are available.
Get Mortgage-Ready for 2027
Whether you’re buying your first home, moving to your next property or considering switching your mortgage, understanding your options can make a real difference.
At Halpin Wealth and Mortgages, our team can help you explore the mortgage options available to you, understand the buying process and make informed decisions about your next steps.
Thinking about buying or switching your mortgage?
Book a free mortgage consultation with our team today to discuss your circumstances and find out what options may be available to you.
This article is for general information only and is based on the Budget 2027 measures as announced. Details may change as legislation is finalised. Please speak to us for advice specific to your circumstances.
Halpin Wealth Management Ltd. t/a Halpin Wealth and Mortgages is regulated by the Central Bank of Ireland.