There’s positive news for homebuyers. Mortgage interest rates in Ireland have dropped to their lowest level in three years.
According to the Central Bank of Ireland, the average mortgage rate in December 2025 stood at 3.50%, down from 3.53% in November and 3.80% a year earlier.
Across the eurozone, the December average was 3.32%, meaning Ireland still has the sixth highest rate in the bloc — but the downward trend is welcome for borrowers.
Big differences between lenders
Rates vary widely depending on the bank and the product.
Analysis by Bonkers.ie shows that for a first-time buyer borrowing €300,000 with a 10% deposit:
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Variable rates range from 3.35% to 4.70%
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Three-year fixed rates range from 3.20% to 4.85%
That gap can mean thousands of euros over the lifetime of a mortgage.
What this means for buyers
Here’s the key point: rates are falling, but not evenly. Some lenders remain significantly more expensive than others.
Mortgage seekers are strongly advised to:
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Compare multiple lenders
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Check both fixed and variable options
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Consider switching if already on a higher rate
With rates easing, this could be one of the more favourable entry points into the housing market in recent years — but only for those who shop around carefully.