The Tax Committee's Reminder to Citizens Benefiting from Income Tax Refund

The Tax Committee has issued a statement directed at citizens who benefit from income tax refunds: "It should be noted that when acquiring a home through a mortgage loan or constructing an individual residential house, the borrower benefiting from the income tax refund is compensated for the amounts paid in interest on the mortgage loan. Depending on the chosen repayment method of the mortgage loan, predominantly, the borrower pays higher amounts of interest initially, while the amounts paid towards the principal increase over the years.

For example, if you have obtained a mortgage loan with a repayment term until 2044, you will be paying (repaying) the interest calculated on the remaining loan over a period of 20 years, along with partial repayment from the principal. You will receive the income tax refund corresponding to the amounts paid in interest. The calculated interest amounts will decrease over the years according to the schedule, while the monthly amounts repaid from the principal will increase.

To avoid financial difficulties during the loan repayment period, the Tax Committee reminds borrowers that they can plan their financial obligations regarding the loan repayment, taking into account the reduction in interest amounts and the resulting refunded income tax amounts. Moreover, borrowers can direct the refunded amounts towards the repayment of the principal of the mortgage loan, considering that the amounts repaid from the principal are generally increasing each subsequent month," the statement reads.