AIB says it has dropped the margins on its mortgage tracker rates, which shadow the European Central Bank's main interest rate.
For owner-occupier mortgages, margins now range from 0.6 points above the ECB rate to 1.1 points. Discount rates for the first year range from 0.45 points to 0.6 points.
AIB said the rates would not be restricted to customers switching from another bank and would not oblige customers to open any other type of account with the bank.
The Irish Mortgage Corporation said the AIB offer is in response to greater competition among lenders for existing homeowner mortgage business.
Director Frank Conway said the lender is providing homeowners a competitive rate for the "lifetime" of their new loan, and consumers are not required to have their current account with AIB, as is the case with some other lenders.
