Chapter 3 of 10 · Rates, lenders and switching · 5 of 10
Mortgage cashback in Ireland: is it worth it?
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
Cashback offers from Irish lenders compared with a lower rate: how it's paid, clawback if you switch, and the maths over five years.
Written in plain English for the person buying, selling or switching. This guide covers the Republic of Ireland only.
Cashback is money a lender pays you for taking its mortgage. It can be thousands of euro, and it arrives soon after you draw down the loan. It also usually comes with a higher rate than the lender's lowest offer. This guide explains how cashback is paid, when you have to give it back, and how to compare it with a lower rate over five years.
How cashback is paid
A cashback offer is a percentage of the loan, paid into your current account. In 2026 the usual figure is 1% to 3%. On a €300,000 mortgage, 2% is €6,000.
The money arrives within weeks of drawdown. Drawdown is the day the lender pays out the loan. Some lenders pay a second amount after a set number of years, often a smaller percentage, as long as you are still with them.
You can spend it on anything. Many people use it to cover the solicitor, the valuation, furniture, or the first months of bills. Our guide on the cost of switching sets out what a switch costs.
Who offers it
In the indicative figures on our rates pages in October 2026, three lenders pay 2% cashback at drawdown on some products, and two others pay a contribution towards legal fees instead, of €1,500 to €2,000. Others pay nothing and offer a lower rate instead. Our switcher rates page shows each lender's offer beside its rate. Those figures are placeholders until the weekly check replaces them.
The clawback
Cashback is not free money with no strings. Most offers have a clawback. If you switch to another lender within a set period, you repay some or all of the cashback. The period is often five years. The amount can be the whole sum or a share that falls each year.
The terms are in your loan offer. Read them before you sign. Ask your solicitor (check the Law Society's register) to point them out. See what a conveyancing solicitor does.
A clawback matters because a cashback offer usually comes with a short fixed period, of 1 to 5 years. When the fixed period ends, you may want to switch. If the clawback still runs, switching costs you the cashback as well as the usual fees.
The maths over five years
The right way to compare a cashback offer with a lower rate is to add up what each costs you over the period you plan to stay. Five years is a common fixed period and a common clawback period, so we use it here.
The example
Say you borrow €300,000 over 30 years. Lender A offers a 5-year fixed rate at 3.45% with 2% cashback. Lender B offers 3.25% with no cashback. The gap is 0.2 of a percentage point.
| Lender A: 3.45% with cashback | Lender B: 3.25%, no cashback | |
|---|---|---|
| Cashback | €6,000 | €0 |
| Monthly payment | €1,339 | €1,306 |
| Paid over 5 years | €80,340 | €78,360 |
| Balance left after 5 years | About €268,860 | About €267,920 |
| Position after 5 years | €6,000 in, €1,980 more paid, €940 more owed |
Over five years, Lender A leaves you about €3,080 better off: €6,000 of cashback less €1,980 in higher payments less €940 in extra balance. The cashback wins at this gap.
A bigger gap
Now say Lender B offers 2.75%, a gap of 0.7 of a point. The monthly payment at 2.75% is €1,225, which is €114 a month less than Lender A. Over five years that is €6,840, before the extra balance. The lower rate wins.
The gap at which the two match depends on the loan size and the term. On €300,000 over 30 years with 2% cashback, the match is at about 0.5 of a point. Below that gap, cashback wins over five years. Above it, the rate wins.
| Gap between the rates | Extra paid over 5 years on €300,000 | Against €6,000 cashback |
|---|---|---|
| 0.2 of a point | About €1,980 | Cashback ahead |
| 0.5 of a point | About €5,030 | Close, after the extra balance |
| 0.7 of a point | About €6,840 | Lower rate ahead |
The switching calculator runs this for your own loan, with and without cashback, and includes the extra balance.
Beyond five years
The figures above stop at five years. Over 30 years, a rate 0.2 of a point higher costs about €12,000 more on €300,000. That is only true if you stay on the higher rate for the whole term. Most people do not. They fix again, or switch, when the fixed period ends.
So the honest comparison is over the period you plan to stay. If you take the cashback, plan to compare rates again when the fixed period and the clawback both end. Our fixed rate reminder emails you 90 and 30 days before the date.
What else to check
- The rate after the fixed period. Cashback products sometimes roll to a higher variable rate. Our guide on a fixed rate ending explains the options at that point.
- The APRC. The APRC is the yearly cost of the loan including fees, which lets you compare offers that charge differently. Cashback is not in the APRC, so compare it separately.
- Whether the cashback is on the whole loan. Some offers cap the cashback, or pay it on the mortgage only and not on a top-up.
- Whether the cashback counts towards your deposit. It does not. The lender pays it after drawdown, and the Central Bank's 10% deposit must come from your own funds.
- Whether a green rate applies. If your home has a BER of B3 or better, a green rate may be lower again. See our green mortgage guide.
Cashback and the lender's duty to show the saving
Since 24 March 2026, under the Consumer Protection Code 2025, your lender must tell you what you could save on a lower rate it offers. That letter compares rates. It does not weigh any cashback you received or any clawback that still runs. Do that sum yourself before you act on it. Our changes page logs the rule.
Where this leaves you
Take the two offers you are looking at and put both into the switching calculator, once with the cashback and once without. The result shows which leaves you ahead over the fixed period after every cost. The switching journey sets out the rest, and get quotes finds the solicitor the switch needs.
Questions people ask
How does mortgage cashback work in Ireland?
The lender pays a percentage of the loan, usually 1% to 3%, into your current account within weeks of drawdown. On a €300,000 mortgage, 2% cashback is €6,000. Some lenders pay a second, smaller amount after a few years.
Is mortgage cashback taxable?
Cashback on a loan for your own home is generally not treated as income. Check Revenue's guidance, or ask a tax adviser, if the home is let or used for a business.
Do I have to pay cashback back if I switch?
Often, yes. Most cashback offers have a clawback: if you switch lender within a set period, usually the first five years, you repay some or all of the cashback. The period and the amount are in your loan offer.
Is cashback better than a lower rate?
It depends on the gap between the rates and how long you stay. In our example, €6,000 of cashback beats a rate 0.2 of a point lower over five years, but a rate 0.5 of a point lower comes close to matching it. Run your own figures in the switching calculator.
Can switchers get cashback?
Yes. Several lenders pay cashback to people switching from another lender, and some pay a contribution towards legal fees instead. Our switcher rates page shows each lender's offer.