Mortgage rates in Ireland are the highest in the 19-country Eurozone, according to data released by the Central Bank.
At 2.79%, the average interest rate on a new mortgage in Ireland is joint highest along with Greece.
Despite a drop of 0.11% compared to this time last year, it’s well above what’s being charged elsewhere.
The average rate on a new mortgage in the Eurozone is just 1.31%.
The average first-time buyer mortgage in Ireland is around €225,000, according to Banking and Payments Federation Ireland.
This means someone borrowing this amount over 30 years is paying more than €167 extra a month or just over €2,000 a year compared to our European neighbours.
Head of Communications at comparison and switching website bonkers.ie Daragh Cassidy said: “The fall in mortgage rates over the past year is obviously welcome and the overall trend does appear to be downward, albeit very, very slowly.
“Yet while there are some valid reasons as to why mortgage rates are higher in Ireland than they are in the rest of Europe, it’s tough to accept that rates here should be over double the Eurozone average, and it’s hugely frustrating that they haven’t fallen further.
"The recent arrival of Avant Money into the market doesn’t seem to be impacting much on rates yet either.”
Mr Cassidy urged people to shop around for the best rate.
He explained: “There’s now a huge variation in interest rates and cashback incentives across all the different lenders so find out who’s offering the best deal for you.
“And while the average new mortgage rate in Ireland is still close to 3%, there are now rates as low as 2.30% on offer for standard first-time buyers with a 10% deposit – even lower if you have more equity to stump up.
“If you already have a mortgage, then look into switching. In recent times Irish mortgage holders have been reluctant to switch, which is crazy given the potential savings involved.”
Chairperson of the Association of Irish Mortgage Advisors Trevor Grant said there is “clearly scope for further reductions” in mortgage rates.
He added: “However, the good news is that the rates offered to new mortgage applicants continue to drop, with PTSB being the latest to introduce new rates this week.
“The arrival of Avant Money before Christmas into the mortgage broker market has driven increased competition, which is good news for consumers."
