Qualifying Home Loans

qualifying home loans A qualifying home loan is a loan from an employee’s employer which is used to purchase, repair, develop or improve the employee’s principal private residence or for paying off another loan used for that purpose. If the employee received the loan with no interest charged at all or for a rate lower than the normal commercial rate, this gives rise to a taxable Benefit In Kind (BIK). The value of the BIK is the difference between the interest rate charged by the employer and the rate specified by Revenue. Currently the Revenue specified Qualifying Home Loan rate is 4%. The principal private residence now includes any residence situated in the EEA state which includes the EU Member States and Iceland, Norway, Liechtenstein and Switzerland.

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