A new standard mortgage product has been launched by credit unions aimed at new home buyers and switchers.
Mortgages have been available through some credit unions around the country, but until today, each credit union set its own interest rate at a local level.
The 'Credit Union Mortgage' offers a single variable interest rate of 3.85%, which is among the lowest varibale rates currently available in the market.
The rate will be capped at 4.4% for the first three years.
The League of Credit Unions said the new product "provides borrowers with a certainty of repayment, while also delivering the benefits of a variable offering."
It will be available to "new home buyers and those looking to switch lenders" in around 30 credit unions across the country this month.
The new standard mortgage will also be available through a further 40 credit unions next year.
The move comes after the Central Bank announced in August that it was increasing the lending capacity of credit unions.
The new limits for mortgage and business lending, which came into effect at the end of September, resulted in more than a tripling of the capacity from €2.9 billion to €9.9 billion.
The Minister of State for Financial Services, Credit Unions, and Insurance said the Central Bank's recent decision to increase the lending limits "is welcome as it supports more competition in the market."
Robert Troy said the introduction of "innovative credit union mortgage products will be welcomed both by those looking to purchase a first home, and by those looking to switch lenders."
"Broader mortgage infrastructure and competition will be important in the years ahead, ensuring first time buyers and those trading up or down have access to competitive financing," he added.
The new mortgage product was developed by CU Mortgage Services, which was established this year "to develop standardised mortgage products and related processes" for credit unions.
The Head of CU Mortgage Services said credit unions have "a long track record in lending and their members are crying out for more choice in the mortgage market."
Seamus Beirne said they are "pleased to support the ambitions of credit unions to become serious players in the mortgage market, with plans to introduce new products and to increase their availability through more credit unions, in the months ahead."
