The number of homes in mortgage arrears for more than 90 days fell to a five-year low of 7.4% in the fourth quarter of 2016.
This was down from 7.6% in the previous three months, new Central Bank figures show.
Today's figures also showed that the number of buy-to-let mortgages in arrears fell to 15.7% at the end of December from 16.2% at the end of September.
The number of home mortgage accounts in arrears fell for the 14th quarter in a row in the last three months of 2016 to stand at a total of 77,493 - or 11% of all mortgage accounts.
Today's figures show the number of home mortgages in arrears up to 90 days actually increased in the fourth quarter - the first increase since the end of September 2012.
But the Central Bank said the increase in early arrears was offset by "significant" reductions in longer-term arrears.
It noted that the number of mortgages in arrears for more than 360 days fell to 42,031, a reduction of 1,612 from the third quarter.
Meanwhile, the number of home accounts in arrears over 720 days also fell by 1,104 (or 3.2%) during the three month period - the sixth quarterly decline in a row and the biggest decrease to date.
Today's figures also show that the number of mortgages for principal dwelling houses that were classified as restructured at the end of December stood at 120,944, down 196 on the third quarter's total.
Of these restructured accounts, 87% were deemed to be meeting the terms of their current restructure arrangement, down slightly from the previous three month period.
The Central Bank also noted that about 41% of home mortgages held by unregulated loan owners are in arrears of over 720 says, compared to 18% of accounts held by retail credit firms.
Commenting on the figures, Fianna Fáil Spokesperson on Finance Michael McGrath said a greater number of sustainable long-term restructuring options need to be put in place in order to tackle the mortgage arrears problem.
He said: "Perhaps the most alarming aspect of today's results is the number of mortgages owned by so-called 'vulture funds'.
"In excess of 12,000 family home mortgages, with a total value of €2.4 billion, are now owned and managed by unregulated 'vulture funds' with over half of these in arrears by more than 90 days.
"The Government must act urgently to treat these funds like any other lender and bring them fully within the ambit of regulation."
