A typical mortgage switcher in Ireland could save around €2,400 within a year of switching, according to the Irish Mortgage Advisors.
The group, which represents mortgage brokers, urged borrowers "to make the most" of new Central Bank switching rules which come into force on 24th March.
The change is introduced as part of the Consumer Protection Code and is "designed to make switching faster, more transparent and easier," the chairperson of Irish Mortgage Advisors said.
Speaking on RTÉ's Morning Ireland, Trevor Grant explained that according to the updated code a lender will have to release title documents within ten days if a customer is considering switching.
A bank or lender will also be required to be "very transparent" in explaining all switching options available to borrowers, as well as explaining how incentives like cashback could impact the cost of mortgage.
"What cashback can do in combination with a good rate is cover any cost of switching, potentially give you some cashback into your pocket, but ultimately help you obtain a lower mortgage rate, meaning cheaper payments and less interest on your mortgage," Mr Grant noted.
However, a lower interest rate on a mortgage may be more valuable than a bonus on a more expensive mortgage, so "cashback and switching bonuses should never be a reason to switch".
According to the Irish Mortgage Advisors, those likely to save considerable amounts by switching mortgage include customers with fixed rates that are about to expire in the coming months - in particular, mortgage holders who are currently on ultra-low fixed rates which they locked into prior to 2022.
"The interest rate they face on expiry of these rates is likely to be much higher than the fixed rate they secured prior to 2022, meaning it is crucial these borrowers shop around for the best deal," he stated.
Customers who gave an energy upgrade to their home or bought an energy-efficient home could also benefit from switching to a lender that offers a green mortgage, IMA notes.
In its analysis, Irish Mortgage Advisors found that a borrower with a €300,178 mortgage (the average value of switcher mortgages being drawn down today) could save €199.94 a month or €2,399.28 a year by switching from a mortgage with a 4.4% interest rate to one of the cheapest mortgage deals available today - a 3.12% variable rate.
If the same borrower qualified for a green mortgage, they could save up to €218.13 a month or €2,617.56 a year, IMA said.
When it comes to possible "break fees" associated with switching, they can be "hefty", Mr Grant noted.
The break fee is not applicable to customers on a variable rate but could be substantial on a fixed-rate.
"Sometimes the penalty for breaking a fixed-rate may be far less than the savings you'd make by switching," IMA advises.
As the European Central Bank is all but certain to keep interest rates steady at 2% for now, Trevor Grant warned the importance of "understanding you current rate" and other options available with existing lender "when we are facing into a period of uncertainty."
"Don't be playing a game trying to beat the markets because very few people are smart enough to do that," he advised.
