Michael McGrath was warned not to introduce mortgage interest relief in Budget 2024

Department of Finance said it could exacerbate housing supply issues, and the Central Bank said it would most likely benefit those who least needed it

Budget 2024 included a €125m mortgage relief package that will save around 150,000 homeowners up to €1,250 per year in cases where their repayments had risen sharply. Picture: Gareth Chaney/Collins

Finance Minister Michael McGrath was strongly advised by Department of Finance officials and the Central Bank not to introduce any mortgage interest relief measures in this year’s budget.

He was told there was no “evidence base” to support any general measure, that it could worsen housing supply issues, would give rise to deadweight, and have the potential to be extremely costly.