The gap between the average rate in Ireland and that of the Eurozone also continues to narrow.
People taking out a new mortgage are now paying 3.66pc, according to Central Bank of Ireland data.
The rate has fallen over the past two months. It was 4.17pc in May.
Current new borrower mortgage rates of 3.66pc here compare with a rate of 3.32pc on average across the Eurozone.
However, rates varied hugely across the currency bloc as they have done for years.
They are as low as 1.80pc in Malta and as high as 4.29pc in Latvia.
And wide variations also exist within Ireland.
For the average first-time buyer, borrowing €300,000 with a 10pc deposit, variable rates range from 3.18pc to 4.70pc, according to an analysis by Bonkers.ie, a brokerage and price comparison site.
Rates for a three-year fixed mortgage range from 3.20pc to 4.85pc.
Prospective first-time buyers and switchers need to shop around when applying for a mortgage, said Daragh Cassidy of Bonkers.ie.
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“Mortgage rates are now at their lowest level in over two years, which is obviously good news for prospective first-time buyers and those looking to switch their mortgage over the coming months,” he said.
The European Central Bank (ECB) is expected to keep rates on hold at its next monetary policy meeting on July 24.
But it will likely cut rates one more time before the end of the year, meaning mortgage rates should creep slightly lower over the coming months.
There have been eight ECB rate cuts in little over a year.
Mr Cassidy warned new buyers, switchers and those coming to the end of a fixed rate that the 3.66pc “average rate really is just that, an average”.
He said there are 10 lenders in the Irish mortgage market at present and there’s a wide variation in rates across them all.
And different lenders offer different cashback deals and incentives, which also need to be taken into account, he said.
Mr Cassidy said a variable rate as low as 3.18pc is available for a standard first-time buyer with Avant Money’s new tracker-like mortgage product.
He said AIB’s variable rate is 4.15pc.
“For someone borrowing €300,000 over 30 years, that’s a difference of over €164 a month or almost €2,000 over just one year,” he said.
“And if you went with the most expensive variable rate on the market, which is 4.70pc, you end up paying over €261 more each month. It’s a huge difference.”
He encouraged consumers to compare the market and shop around when applying for a mortgage, either as a first-time buyer or switcher.
“A good broker will help you find the best rates for your particular circumstances,” he said.
He said borrowers do not have to have a current account or any type of relationship with a mortgage provider in order to apply for a mortgage with them.
Mr Cassidy said borrowers should not “go with what you know”.
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