Irish mortgage rates have reached their lowest level in almost three years, according to new data from the Central Bank of Ireland.
The average mortgage rate fell to 3.53 percent in November, down from 3.56 percent in October and 3.59 percent in September. This represents the lowest level since February 2023, though Irish rates remain the sixth highest in the Eurozone, where the average stands at 3.33 percent.
Mortgage rates continue to vary widely across the currency bloc, ranging from as low as 1.96 percent in Malta to as high as 3.78 percent in Latvia.
Significant variations also exist within Ireland’s mortgage market. An analysis by bonkers.ie shows that for the average first-time buyer borrowing €300,000 with a 10 percent deposit, variable rates range from 3.45 percent to 4.70 percent, while three-year fixed mortgage rates range from 3.20 percent to 4.85 percent.
Daragh Cassidy, head of communications at bonkers.ie, said: “As expected, mortgage rates moved lower again in November as recent rate decreases from PTSB and AIB have fed through into the figures. Although Irish rates may still be the sixth highest in the Eurozone, the gap is now relatively modest at just 0.20 percentage points.”
Cassidy noted that Irish banks don’t charge fees or commissions for issuing mortgages, unlike many other countries where arrangement fees of €1,000 or more are common, making Irish rates more competitive than they may initially appear.
“Looking forward, the ECB appears done with cutting interest rates for now and indeed rates could remain on hold for all of 2026. So it’s unlikely mortgage rates will change much over the coming months,” Cassidy said. “However Revolut is expected to enter the Irish mortgage market later this year so depending on how competitive its offering is, that could push rates down a bit.”
Cassidy emphasized that the 3.53 percent average rate masks significant variation among lenders. “There are ten lenders in the Irish mortgage market at present when you include the credit unions and there’s a wide variation in rates across them all. And different lenders offer different cashback deals and incentives, which also need to be taken into account.”
He highlighted that variable rates as low as 3.45 percent are currently available with Avant Money’s new tracker-like mortgage product for standard first-time buyers, compared to 4.15 percent with AIB and 4.70 percent with PTSB.
“I’d really encourage consumers to compare the market and shop around when applying for a mortgage — either as a first-time buyer or switcher. A good broker will help you find the best rates for your particular circumstances,” Cassidy said. “And remember, you don’t have to have a current account or any type of relationship with a mortgage provider in order to apply for a mortgage with them. So don’t just ‘go with what you know’.”
The falling mortgage rates provide some relief for homebuyers in Ireland’s challenging property market, where high house prices and limited supply continue to create affordability pressures despite the improving interest rate environment.