Boost for Irish homeowners as mortgage rates fall to lowest rate in 2 years as further cuts expected before end of year
HOME SAVINGS Boost for Irish homeowners as mortgage rates fall to lowest rate in 2 years as further cuts expected before end of year
IRISH mortgage rates have fallen for the fifth month in a row - and have now reached their lowest level since March 2023.
The gap between the average rate in Ireland and that of the Eurozone also continues to narrow.
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Mortgage rates have dropped for the fifth month in a row
Credit: Getty
The average Irish mortgage rate is now 3.60 per cent, down from 4.11 per cent in June of 2024, according to the Central Bank of Ireland today.
This compares to the Eurozone average of 3.29 per cent.
However rates in Ireland varied hugely across the currency bloc as they have done for years.
For the average first-time buyer borrowing €300,000 with a 10 per cent deposit, variable rates range from 3.18 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.
Money experts are urging first-time buyers and switchers to shop around.
Head of Communications at Bonkers.ie, Daragh Cassidy, said it's likely rates will be cut further.
He said: "Mortgage rates are now at their lowest level since March 2023, which is obviously good news for prospective first-time buyers and those looking to switch their mortgage over the coming months.
"At present, there's still a likelihood the ECB will cut rates once more before the end of the year, meaning mortgage rates should creep slightly lower over the coming months.
"But the 3.60 per cent average rate really is just that — an average.'
5 things to check before applying for a mortgage
The money pro explained there are 10 lenders in the Irish mortgage market at present and there's a 'wide variation in rates across them all'.
Mr Cassidy said: 'Different lenders offer different cashback deals and incentives, which also need to be taken into account.
"For example, a variable rate as low as 3.18 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. For someone borrowing €300,000 over 30 years, that's a difference of over €164 a month or almost €2,000 over just one year.
'And if you went with the most expensive variable rate on the market, which is 4.70 per cent with ICS Mortgages, you'd end up paying over €261 more each month. It's a huge difference.'
Those who are buying a new-build property, it's just as important to shop around.
Mr Cassidy explained: 'If you're buying a new-build property, you could get a three-year fixed rate of 3.20 per cent with AIB.
"Whereas choosing Núa Money would get you a rate of 4.85 per cent.
"That's a difference of over €285 a month or almost €10,300 over the three years. "
Mr Cassidy stressed that a "good broker" will help you find the best rates for your particular circumstances.
He added: "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."
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