Daniel Behan (LIB QFA APA)

If recent headlines about ECB rate rises, housing supply and changing property prices have left you wondering what to do next, this update is for you.

The third quarter of 2026 brought a mixed picture for Irish borrowers and buyers. The housing market is showing signs of cooling, mortgage approvals remain strong and the ECB has raised rates for the second time this year. For first-time buyers, movers, switchers and investors, the right next step will depend on your individual circumstances but staying informed has never been more important.

The housing market is becoming more negotiable

Ireland’s housing market entered a cooler phase during Q3. Prices are still rising overall, but at a much slower pace than in recent years.

National asking prices were 3% higher year-on-year in September, while early transaction data showed completed sale prices up just 0.8%, the slowest annual increase since 2020. The average asking price nationally was just under €445,000.

Perhaps most notably, the gap between asking prices and achieved sale prices narrowed from 6.8% a year ago to 2.6%. This suggests buyers may have more room to negotiate than they did during the recent period of intense competition.

The picture varies by region:

Dublin is showing the clearest slowdown, with asking prices up 2.7% year-on-year and reported transaction prices falling 5.2%.
Leinster outside Dublin recorded asking-price growth of 2.1%, its lowest growth rate since 2020.
Regional cities have remained more resilient, although growth is moderating.
Munster outside the cities has seen stronger transaction-price growth, though supply remains limited.
Connacht and Ulster have also seen slower asking-price growth and softer transaction-price trends.

Housing supply has improved, with stock up 12.5% year-on-year, but it remains well below pre-Covid levels. This means the market is cooling rather than collapsing: demand is less intense, but supply remains a fundamental constraint.

New-build transactions are becoming increasingly important. New-home sales rose nationally and accounted for much of the growth in overall activity, reinforcing the importance of schemes such as Help to Buy and the First Home Scheme for eligible buyers.

Mortgage approvals remain strong

While the property market has become more balanced, mortgage demand remains robust.

A total of 5,083 mortgages were approved in August 2026, up 12.1% on the same month last year. The value of those approvals was €1.678 billion, up 15.3% year-on-year and the strongest August on record for mortgage approvals.

First-time buyers continue to drive the market, accounting for 3,024 approvals – 59.5% of total approval volume – and €1.008 billion, or 60.1%, of approval value in August.

Over the 12 months to August, 55,850 mortgages were approved, valued at almost €18.1 billion. This was the first time annual mortgage approvals exceeded €18 billion since the BPFI data series began.

This tells us that, despite affordability challenges and rising rates, buyers remain active. For those considering a purchase, preparation is key: know your borrowing capacity, have your deposit and documents in order, and understand which lenders and schemes may suit your circumstances before you begin viewing properties.

Another ECB rate rise

In September, the European Central Bank increased its policy rate by 0.25 percentage points, marking its second increase of 2026. The ECB deposit facility rate is now 2.50%, while the main refinancing operations rate is 2.65%.

The decision followed renewed inflation pressure, including higher energy costs. The ECB expects euro-area inflation to remain above its 2% target for the next several years, while markets are continuing to assess the likelihood of further rate increases.

For mortgage holders, the impact depends on the type of rate you have:

Tracker mortgage holders: Repayments will increase automatically as their mortgage rate is linked to the ECB rate. Around 100,000 Irish tracker borrowers are expected to be affected. The September rise equates to roughly €13 extra per month per €100,000 outstanding; a borrower with €150,000 remaining could see repayments rise by around €17–€18 per month.
Variable-rate borrowers: Lenders decide whether and when to pass rate rises on. Several banks did not pass on the June increase to many variable-rate customers, but borrowers should be prepared for rates to change as lender funding costs evolve.
Fixed-rate borrowers: Your monthly repayment is protected until the end of your fixed period. However, it is sensible to review options well before that period expires, particularly if new fixed rates rise.

The two ECB rises this year could add approximately €26 per month for every €100,000 outstanding on a tracker mortgage once both increases have taken effect.

Why reviewing your mortgage matters

For many mortgage holders, the most important message is not to wait until a rate increase affects your repayment or until your fixed term is about to end.

A mortgage review can help you understand whether switching, fixing, overpaying or staying with your current lender is likely to be the most suitable option. A competitive rate, cashback offer or product with better flexibility may create meaningful savings, but the best choice will depend on your outstanding balance, loan-to-value, remaining term, repayment capacity and future plans.

Equally, if you are a first-time buyer or mover, higher interest rates can affect borrowing capacity. Reviewing your position early can help you set a realistic budget, identify the right lender and avoid missing opportunities when the right property becomes available.

How IMC can help

At Irish Mortgage Corporation, we work with first-time buyers, movers, switchers and investors across a range of lenders. We can help you:

Understand your borrowing capacity and likely monthly repayments.
Compare mortgage rates and product options.
Assess whether Help to Buy or the First Home Scheme may be relevant.
Review your existing mortgage and potential switching opportunities.
Guide you from application through to drawdown.

The market may be becoming more balanced, but affordability and supply remain challenging. Whether you are buying your first home, moving, switching or reviewing an existing mortgage, now is a good time to understand your options.

Contact me for a free, no-obligation mortgage consultation.