The average interest rate on new Irish mortgage loans remains amongst the highest in Europe despite a drop of 52 basis points in the past year.
New data from the Central Bank shows the average mortgage rate now stands at 3.72%, down from 3.77% in March. The rate in Ireland exceeds the euro area average by 38 basis points with Ireland climbing one place to fifth in the euro area ahead of Germany, the Netherlands, Greece and Luxembourg.
The Central Bank said the average rate on fixed-rate mortgages, which constitute 81% of the volume of new loans, was 3.55% in April, three basis points lower than March 2025 and 58 basis points lower than in April 2024.
Trevor Grant, chairperson of the Association of Irish Mortgage Advisors, said Ireland remains expensive for mortgages despite the recent falls, but said there may be hope of average rates dropping below 3%.
“The ECB rate cut earlier this month could see average mortgage interest rates continue to fall in Ireland in the coming months, meaning sub-3% mortgage rates could become more widely available in Ireland. Earlier this month, Avant Money became the first lender to start offering sub-3% mortgage rates here,” he said.
“This marks the first time mortgage rates have dipped below the 3% threshold since 2022, marking a significant milestone for Irish borrowers. We’d expect more lenders to follow suit, with homeowners and house buyers set to enjoy substantial savings on their mortgages as a result.”