The European Central Bank (ECB) has implemented its fifth interest rate cut since June, reducing lending rates by 0.25 percentage points, with the possibility of further cuts ahead.
The decision will provide direct relief to around 130,000 homeowners with tracker mortgages.
A couple with €200,000 remaining on their tracker over 10 or 15 years will see their monthly repayments drop by approximately €25 as a result of the latest cut, Irish Independent reported.
Including the previous four reductions and a special refinancing rate adjustment in September, most tracker mortgage holders will now be paying over €150 less per month compared to last year.
The new rates—2.75 per cent for the deposit facility, 2.90 per cent for main refinancing operations, and 3.15 per cent for the marginal lending facility—will take effect from 5 February 2025.