First-time buyers are paying almost €157 more for their mortgage each month compared to the European average.
Latest figures from the Central Bank today show that first-time buyers continue to pay higher interest rates than customers in any other country in the Eurozone.
According to the latest figures from the Central Bank, the average interest rate issued on a new mortgage in August was 3.15%, which is a slight decrease from 3.21% in July.
This compares to an average rate of 1.77% across Europe despite being low for Ireland by historical standards.
The average first-time buyer mortgage is now €218,702, according to the Banking & Payments Federation Ireland.
This means a typical first-time buyer who is borrowing that amount over 30 years will pay €156.40 a month more for their mortgage compared to the European average, or almost €1,900 a year.
Fixed rates remain the most popular type of borrowing, with these accounting for 65% of new mortgage lending in the three months to August.
However, this is still low by European standards where over 80% of mortgages are fixed.
Daragh Cassidy, Head of Communications at price comparison and switching website bonkers.ie, said: “Despite the recent rate reductions from some of the main banks, first-time buyers in Ireland continue to pay far more for their mortgage than buyers in any other country in the Eurozone, which is incredibly frustrating.
Mr Cassidy advises: “If you’re a first-time buyer who’s at the start of the mortgage journey, make sure you do your research and shop around. There’s now a large variation in interest rates and cashback incentives across all the different lenders so find out who’s offering the best deal for you."
He says that people who already have a mortgage should consider switching.
"While there are costs associated with switching mortgage, in many cases banks will provide a cashback incentive to those who switch or a contribution towards the legal fees," he said.