The Government extended a mortgage tax break despite officials advising it had no clear policy rationale and it risked pushing up house prices. A pre-budget submission warned continuing the scheme could discourage banks from lowering interest rates and simply boost their profitability. Despite the advice, then-minister for finance Paschal Donohoe approved a two-year extension of mortgage interest tax relief in last year’s budget. The submission detailed how the tax break was introduced at a “unique time” of rising mortgage rates and widespread inflation. It concluded the relief, which applied to the tax years 2023 and 2024, should not be extended any further.

Source: Irish Examiner March 17, 2026 13:54 UTC