Chapter 3 of 10 · Rates, lenders and switching · 6 of 10
Mortgage rates in Ireland in 2026: what is moving them
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
Irish average mortgage rates in 2026 from Central Bank data, how they compare with the euro area, and what drives the next move. No guesses.
Written in plain English for the person buying, selling or switching. This guide covers the Republic of Ireland only.
Mortgage rates decide what a home costs you each month for years. This guide gives you the Irish figures for 2026 from the Central Bank, shows how they compare with the rest of the euro area, and explains what pushes rates up or down. It does not say where rates are going next. Nobody knows that.
The figures for 2026
The Central Bank of Ireland publishes the average interest rate on new mortgages every month. These are the figures for August 2026, the latest when we checked on 21 October 2026.
| Measure | Rate |
|---|---|
| Average rate on all new Irish mortgages | 3.53% |
| Average new fixed rate | 3.49% |
| Average new variable rate | 4.16% |
| Euro area average on new mortgages | 3.62% |
An average is not a rate you can get. It mixes every loan drawn down that month: first-time buyers, movers, switchers, big deposits and small ones. The rates on offer from each lender in October 2026 run from about 3% to a little over 4%. You can see them, lender by lender, on our rates comparison.
The rates on that page are indicative at launch. A weekly check replaces them with each lender's published rate. The page says so until then.
What a quarter of a point means
A difference of 0.25 of a percentage point sounds small. On €300,000 over 30 years it is about €42 a month, or about €500 a year. A difference of 0.5 of a point is about €85 a month. Our repayment calculator shows your own figure.
Ireland against the euro area
In August 2026 the Irish average, 3.53%, was below the euro area average of 3.62%. In earlier years the Irish figure often sat above the euro area figure. The gap opens and closes from month to month, and the Central Bank's page shows both series.
Why can Ireland differ from the rest of the euro area when the ECB rate is the same everywhere?
- Irish lenders hold more capital against each mortgage than many European lenders, because of past losses.
- It is slower to take back a home in Ireland when a loan fails, which raises the cost of lending.
- There are fewer lenders here, so there is less competition.
- Many Irish loans are fixed for short periods, and short fixed rates were lower than long ones in 2026.
What moves mortgage rates
Four things decide the rates lenders offer. The ECB is only one of them.
The ECB rate
The European Central Bank (the ECB) sets the rate at which banks borrow from it and lend to each other. The ECB deposit rate is 2.50% since 16 September 2026. It was 2.25% from 17 June 2026 and 2.00% from 11 June 2025. Trackers follow it at once, variables follow when the lender decides, and fixed rates move ahead of it. Our ECB guide explains the mechanism. The glossary explains the terms.
Funding costs
A lender has to get the money it lends. Banks use their customers' deposits, which cost them little when savings rates are low. Non-bank lenders borrow on the markets, which costs more. For a fixed rate, the lender's cost is the market rate for borrowing over the same number of years. That is why a 5-year fixed rate and a 1-year fixed rate can differ.
Competition
When a new lender enters, or an existing one wants a bigger share, it lowers its rates to win borrowers. Others often follow. When lenders have enough business, rates drift up. Cashback offers are part of the same contest. Our cashback guide shows how to weigh one against a lower rate.
Risk
Lenders charge more where the loan is a bigger share of the home's value. A loan at 90% of the price usually costs more than a loan at 60%. A home with a BER (a Building Energy Rating) of B3 or better usually gets a lower rate, which our green mortgage guide explains.
The market in 2026
The Banking and Payments Federation Ireland (the BPFI) reports mortgage approvals each month. In August 2026 lenders approved 5,083 mortgages worth €1.68 billion. That was up 12.1% in number and 15.3% in value on August 2025. July 2026 was a record month, with 6,253 approvals. Over the twelve months to August 2026 there were 55,850 approvals worth €18.1 billion.
More approvals mean more competition for each borrower. They say nothing about where rates go next.
Who lends in Ireland
The lenders, and how you reach them:
| Lender | How to apply |
|---|---|
| AIB, Bank of Ireland, PTSB | Directly, or through a broker |
| EBS | Directly |
| Haven Mortgages | Through a broker only |
| Avant Money, ICS Mortgages, MoCo, Nua Money | Through a broker only |
| Credit unions | Directly, from a credit union that offers mortgages |
A broker (on the Central Bank's register) can apply to several lenders for you and is usually paid by the lender. See what a mortgage advisor does. Check any broker or lender on the Central Bank's register before you deal with them.
Where to compare
The Competition and Consumer Protection Commission (the CCPC) runs the official comparison tool for Irish mortgages. It is free and independent. Our rates page lists every lender too, sorted the way you choose, and links to the CCPC's tool.
When you compare, look at the APRC as well as the rate. The APRC is the yearly cost including fees, which lets you compare offers with different charges. Look at the fixed period, the overpayment allowance and any cashback, and at what the rate becomes when the fixed period ends.
What this means if you are switching
Switching is outside the Central Bank's lending limits, so the 4 times and 3.5 times income rules do not apply. Since 24 March 2026 your lender must tell you what you could save on a lower rate it offers. Our switching guide sets out the steps, and our changes page logs every rule change.
Where this leaves you
Open the rates comparison, sort by the rate or the fixed period, and note the two or three offers that fit your deposit and your home's BER. Then put each into the repayment calculator. If you already have a mortgage, the switching journey takes you from there to a decision.
Questions people ask
What is the average mortgage rate in Ireland in 2026?
The Central Bank's latest figure is 3.53% for new mortgages in August 2026. The average new fixed rate was 3.49% and the average new variable rate was 4.16%.
Are Irish mortgage rates higher than the rest of Europe?
Not in August 2026. The Irish average for new mortgages was 3.53%, against a euro area average of 3.62%. The gap changes from month to month, and the Central Bank publishes both figures.
Will mortgage rates go down in 2026?
Nobody knows, and this site does not guess. The ECB raised its rates twice in 2026. Fixed rates on offer reflect what lenders pay to borrow for the same period. Compare the rates on offer today and decide on what you can afford.
Which lenders offer mortgages in Ireland?
AIB, Bank of Ireland and PTSB directly and through brokers; EBS directly; Haven, Avant Money, ICS Mortgages, MoCo and Nua Money through brokers; and some credit unions. Our lenders page lists each one.
Where can I compare mortgage rates in Ireland?
The CCPC runs the official comparison tool. Our rates page lists every lender's rates with a link to the CCPC on every page.