Irish mortgage rates reach lowest level in almost three years

James Cox

Irish mortgage rates inched lower again in November, according to new data from the Central Bank of Ireland today.

The average mortgage rate was 3.53 per cent, down from 3.56 per cent in October and 3.59 per cent the month before.

The Eurozone average was 3.33 per cent.

This leaves Irish mortgage rates at their lowest level since February 2023 and the sixth highest in the Eurozone.

Though narrowing, rates continued to vary widely across the currency bloc — from as low as 1.96 per cent in Malta to as high as 3.78 per cent in Latvia.

Wide variations also exist within Ireland. An analysis by bonkers.ie shows that for the average first-time buyer borrowing €300,000 with a 10 per cent deposit, variable rates range from 3.45 per cent to 4.70 per cent. While rates for a three-year fixed mortgage range from 3.20 per cent to 4.85 per cent.

Prospective first-time buyers and switchers are being reminded of the importance of shopping around when applying for a mortgage.

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. It’s also worth remembering that banks here don’t charge fees or commissions for issuing a mortgage — unlike in many other countries where arrangement fees of €1,000 or more are common. So this makes Irish rates a tad more competitive than they may first 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. 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.

"But the current 3.53 per cent average rate really is just that — an average."

Mr Cassidy added: "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.

"For example, a variable rate as low as 3.45 per cent is available right now for a standard first-time buyer with Avant Money’s new tracker-like mortgage product. But it’s 4.15 per cent with AIB and 4.70 per cent with PTSB. It’s a big difference.

"It’s similar for fixed rates. So 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.

"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'."