New figures show that the average new mortgage drawn down has surged by 82% over the past decade.
The latest doddl.ie Mortgage Switching Index shows that mortgage drawdowns have soared from €189,940 in 2015 to €341,078 in the first three months of this year.
Doddl.ie said the jump reflects an equivalent increase in the country's escalating property prices and it also means that any shift in interest rates is now having a dramatic financial impact on borrowers.
The online broker noted that for switchers, the gap between the market's highest and lowest rates now exceeds €7,300 and the gap between the highest and lowest mortgage rates in the market now stands at 3.15%.
For a borrower with the average mortgage of €341,078, this equates to a saving of €611 per month - or over €7,338 per year by switching from the highest to the lowest rate.
Doddl.ie also noted that despite a rebound in switching, which was up 77% year on year in March, activity remains well below 2022 levels.
Martina Hennessy, the CEO of doddl.ie, said that mortgage holders who remain loyal to their original lender - often one of the main pillar banks - could be missing out on tens of thousands of euro in savings by not exploring more competitive alternatives.
"There has been a lot of change in the mortgage market over the last 18 months, competitiveness has improved with two new lenders entering the market and significant rate cuts," she said.
Today's index also highlights a shift in borrower behaviour, with over 20% of new mortgages in 2024 drawn down on variable rates, compared to under 10% in 2022, which the online broker said reflected greater confidence that rates will remain stable or fall further.
An average variable rate on the Irish market is 4.15%, but they range from 3.75% up to 5.65%
"As a result of this shift, we have seen real product innovation this year with the introduction of a new benchmarked variable product," Ms Hennessy said.
"Avant Money's Flex Mortgage product is benchmarked to the 12-month Euribor rate and currently starts from 3.04%, and offers a huge opportunity for mortgage holders who have a preference for a variable rate to switch and save," she noted.
She said that Finance Ireland recently announced that they are stopping new mortgage lending, meaning many of its existing customers are now rolling off low fixed rates onto some of the highest rates in the market.
"Mortgage holders rolling out of fixed rates with Finance Ireland certainly need to assess market options. With no new mortgage lending proposition in place and servicing transferred to a third party, there is little incentive for rate competitiveness," Ms Hennessy cautioned.
She also noted that Bank of Ireland and AIB are focused on the green mortgage space with their most favourable rates offered to those with A energy ratings.
But Martina Hennessy said that the majority of homes in Ireland do not meet the BER threshold to avail of lower green rates.
She also said that the market has become more competitive for those who are not eligible for a green rate but who have built up equity in their home and they can still secure the lowest market rate, which is currently 3%.
Ms Hennessy said that with nearly 700,000 home mortgage in Ireland and large numbers still on uncompetitive rates, the opportunity for mortgage holders to save by switching remains substantial.
