Current Home Loan Rates Ireland: Compare Fixed & Variable
If you’re shopping for a home loan in Ireland right now, you’ve probably noticed that rates are higher than a few years ago, but there’s still plenty of movement. With fixed rates from as low as 3.25% and variable rates hovering between 3.75% and 4.15%, the choice between locking in or staying flexible is far from straightforward.
Lowest fixed rate: 3.25% (PTSB) ·
Variable rate range: 3.75% (AIB) – 4.15% (AIB) ·
Central Bank average fixed rate: 3.51% (Central Bank of Ireland) ·
Lenders compared: 4 (AIB, PTSB, EBS, Avant)
Quick snapshot
- AIB offers owner-occupier variable rates from 3.75% (≤50% LTV) to 4.15% (>80% LTV) (AIB).
- PTSB provides a 4-year fixed rate as low as 3.25% (LTV 60–80%) (PTSB).
- The weighted average fixed rate on new Irish mortgages was 3.51% in September 2025 (Central Bank of Ireland).
- The exact timing of ECB rate cuts in 2026 remains uncertain.
- Whether Irish mortgage rates will drop below 3% again is not yet confirmed.
- How quickly lenders will pass on ECB cuts to existing variable rate customers is unknown.
- Whether the weighted average fixed rate will fall below 3.5% in 2026 is uncertain.
- Rates rose sharply in 2022–2023 after ECB hikes, stabilised in mid-2024, and remain elevated as of October 2025 (Central Bank of Ireland).
- Analysts expect the ECB to cut rates in 2026, which could lower Irish mortgage rates (Avant Money rate update suggests ongoing market movement).
The table below summarises the latest rates from major lenders.
| Metric | Value | Source |
|---|---|---|
| Lowest fixed rate | 3.25% (PTSB 4-year fixed, 60–80% LTV) | PTSB |
| AIB variable (LTV ≤50%) | 3.75% | AIB |
| AIB variable (LTV >80%) | 4.15% | AIB |
| PTSB 3-year fixed (≤60% LTV) | 3.65% | PTSB |
| PTSB 5-year fixed (≤60% LTV) | 3.50% | PTSB |
| EBS 5-year fixed | 4.40% | EBS |
| Central Bank weighted average fixed rate (Sep 2025) | 3.51% | Central Bank of Ireland |
| Central Bank weighted average variable rate (Sep 2025) | 4.08% | Central Bank of Ireland |
The pattern: fixed rates are generally lower than variable rates, but the lowest deals require a substantial deposit.
What are current mortgage rates in Ireland?
Current fixed rates from major lenders
- PTSB offers a 3-year fixed at 3.65% (LTV ≤60%) and a 5-year fixed at 3.50% (LTV ≤60%) (PTSB).
- AIB has a 2-year fixed from 3.35% (≤50% LTV) per their rate sheet (AIB).
- EBS lists a 5-year fixed at 4.40% (EBS).
- Avant Money updated its mortgage products page in April 2025 (Avant Money).
Current variable rates from major lenders
- AIB variable rates: 3.75% (LTV ≤50%), 3.95% (LTV 50–80%), 4.15% (LTV >80%) (AIB).
- The Central Bank of Ireland reported that variable-rate new mortgages averaged 4.08% in September 2025 (Central Bank of Ireland).
How do rates compare to historical averages?
Before the ECB hiking cycle of 2022–2023, many Irish borrowers enjoyed fixed rates below 3%. The weighted average rate on new mortgages hit a low of around 2.5% in late 2021. Today’s national average of 3.59% (September 2025) is a full percentage point higher (Central Bank of Ireland). The implication: while today’s rates are elevated, they are not extreme compared to the 4–5% norms of a decade ago.
The takeaway: borrowers with a larger deposit can secure rates near 3.25%, while others face higher costs.
Will mortgage rates ever be 3% again?
Historical low rates
- In 2021, ECB rates were negative, and Irish fixed rates dipped below 2.5% for some products.
- The current lowest fixed rate (3.25% from PTSB) is within striking distance of 3% but still above.
Expert forecasts
Analysts are split. Some expect ECB cuts to bring eurozone rates down gradually, but few predict a return to pre‑2022 lows quickly. The ECB itself has signalled a cautious approach. According to Central Bank of Ireland data, the weighted average fixed rate is 3.51% — a far cry from 3% (Central Bank of Ireland). The trade-off: fixing now locks in a rate near 3.25%, while waiting for 3% could mean paying 3.75%+ if cuts don’t materialise.
What this means: returning to 3% is unlikely in the near term, so locking in today’s best rates may be prudent.
Will Irish mortgage rates go down in 2026?
ECB rate outlook
The European Central Bank is widely expected to begin cutting its benchmark rate in early 2026, after a series of holds in late 2024 and 2025. Lower ECB rates typically flow through to variable and new fixed-rate mortgages in Ireland (AIB’s rate sheet responds to ECB moves).
Lender competition
Irish lenders are already competing aggressively for new business. PTSB’s 3.25% 4-year fix and AIB’s 3.35% 2-year fix (AIB) suggest that lenders are pricing in expected ECB cuts. The pattern: when lenders anticipate cuts, they lower fixed rates preemptively to attract borrowers.
What homeowners should expect
If the ECB cuts by 0.5–1.0% in 2026, new fixed rates could fall into the 2.75%–3.25% range. But existing variable rate borrowers may see reductions more slowly. The key takeaway: waiting for 2026 could pay off for variable rate borrowers, but those who lock now at 3.25% or 3.35% are unlikely to be worse off significantly.
The catch: if cuts are smaller than expected, variable-rate borrowers may face prolonged higher payments.
Is 3.75 a good interest rate?
Comparing 3.75% to current market
At 3.75%, a borrower is paying more than the cheapest fixed rate of 3.25% (PTSB) and slightly above the Central Bank average fixed rate of 3.51% (Central Bank of Ireland). So 3.75% is above average for fixed deals.
Fixed vs variable at 3.75%
If you can get a variable rate of 3.75% (AIB’s rate for ≤50% LTV), that is below the weighted average variable rate of 4.08%. On a €250,000 mortgage, 3.75% costs about €1,247 per month over 25 years vs. €1,322 at 4.08% — a saving of €75 per month (AIB rate). The catch: variable rates can rise if the ECB surprises with hikes.
What LTV matters
At lower LTVs (≤60%), borrowers qualify for PTSB’s 3.65% 3-year fix or even 3.25% 4-year fix. At higher LTVs, 3.75% is more typical (PTSB).
The pattern: loan-to-value ratio is the key driver of rate differences.
Should I fix for 2 or 5 years now?
Pros and cons of 2-year fix
Upsides
- Lower rate today (AIB 2-year fixed from 3.35%) (AIB).
- Flexibility to refinance in 2027 when rates could be lower.
- No long-term commitment if your circumstances change.
Downsides
- If rates don’t drop, you may face higher payments after 2 years.
- Potential exit fees or re‑fixing costs.
Pros and cons of 5-year fix
Upsides
- Certainty of payments for 5 years (PTSB 5-year fixed at 3.50%) (PTSB).
- Protection against rate rises if ECB surprises with hikes.
- Peace of mind for budgeting.
Downsides
- You miss out if rates drop sharply in 2026–2027.
- Higher break fees if you want to switch lender early.
The trade-off: a 2-year fix is a bet that rates will fall; a 5-year fix is a bet that they won’t fall far enough to outweigh the cost of waiting.
The implication: the decision hinges on your outlook for ECB policy and your personal risk tolerance.
Timeline: how we got here
| Period | Event | Source |
|---|---|---|
| 2022–2023 | ECB rate hikes push Irish mortgage rates up from historic lows | Central Bank of Ireland |
| Mid-2024 | Rates stabilise at elevated levels; lenders begin offering competitive fixed deals | Avant Money |
| October 2025 | Current rates as shown in lender tables: PTSB 3.25% 4-year fixed, AIB variable 3.75% | PTSB, AIB |
| 2026 (predicted) | ECB expected to cut rates, possibly lowering Irish mortgage rates | Analyst consensus (not a single sourced claim) |
The pattern: each phase reflects ECB policy, with lenders reacting quickly to market expectations.
What’s confirmed, what’s unclear
Confirmed facts
- As of October 2025, AIB offers variable rates ranging from 3.75% to 4.15% depending on LTV (AIB).
- PTSB offers a 4-year fixed rate of 3.25% for LTV 60–80% (PTSB).
- The Central Bank of Ireland reported a weighted average fixed rate of 3.51% in September 2025 (Central Bank of Ireland).
- EBS offers a 5-year fixed rate of 4.40% (EBS).
What’s unclear
- The exact timing and magnitude of ECB rate cuts in 2026.
- Whether Irish mortgage rates will fall to 3% or below again.
- How quickly lenders will pass on ECB cuts to existing variable rate customers.
- Whether the weighted average fixed rate will dip below 3.5% in 2026.
The takeaway: confirmed facts are current, but the future path remains uncertain.
Expert perspectives
The weighted average rate on new fixed-rate mortgage agreements was 3.51% in September 2025.
— Central Bank of Ireland (Retail Interest Rate Statistics)
Our 3-year fixed rate for new business at LTV up to 60% is 3.65%.
— PTSB (Mortgage Interest Rates page)
These two perspectives — one from Ireland’s central bank and one from a major lender — illustrate the gap between the market average and the best available rates.
Summary
For Irish home buyers and switchers, the current market offers the best fixed rates since mid‑2024, with PTSB’s 3.25% 4-year fix leading the pack. If you’re confident rates will fall in 2026, a 2-year fix or variable rate may give you lower payments soon. But if peace of mind and budget certainty matter more, locking in a 3.35%–3.50% fixed rate today removes the risk of higher payments if the ECB moves slowly. For borrowers with a 40% deposit, the choice is clear: take the shortest competitive fix that aligns with your timeline, or go variable and monitor ECB signals closely.
aib.ie, mortgagewatch.ie, ozbrief.org, mfcu.ie, parkfinancial.ie, propertydata.ie, irishpropertyguide.ie
For a detailed breakdown of the latest offers, including Avant’s competitive 2.98% rate, check out this guide to current home loan rates in Ireland.
Frequently asked questions
What is the best mortgage rate in Ireland today?
The lowest rate among major lenders is PTSB’s 4-year fixed at 3.25% (LTV 60–80%). For lower deposits, AIB’s 2-year fixed at 3.35% (≤50% LTV) is also competitive.
How often do mortgage rates change?
Lenders update rates periodically in response to ECB decisions, market conditions, and competition. Fixed rates can change weekly, while variable rates typically move after ECB announcements.
Do I need a high deposit to get the best rates?
Yes. The best rates (3.25%–3.50%) are available to borrowers with LTVs of 60% or lower. Higher LTVs (80%+) attract rates around 4.15% or more.
What is the difference between fixed and variable rates?
A fixed rate stays the same for a set period (e.g., 2 or 5 years). A variable rate can go up or down, typically tracking ECB changes. Fixed rates offer certainty; variable rates offer flexibility.
Can I switch mortgage lender to get a better rate?
Yes. Switching lenders is common in Ireland. Many borrowers move to a new lender for a lower rate, often with cashback offers. Check for break fees on your existing fixed rate first.
How do I apply for a mortgage with AIB?
You can apply online at aib.ie or visit a branch. You’ll need proof of income, deposits, and property details. AIB’s current rates are listed on their official interest rates PDF (AIB).
What is the current ECB interest rate?
The ECB’s deposit rate (as of late 2025) is 3.25%. The next decision is expected in early 2026, with potential cuts on the horizon.
Related reading
- Bank lowers mortgage rates: Irish 2026 guide for borrowers
- BNZ Mortgage Rates NZ: Current Rates & 2026 Predictions
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