AIB has announced that it is to cut its standard variable rate by 0.25% to 3.4%.
A similar rate cut will be applied to its loan to value mortgages which will see the rate there fall as low as 3.1% depending on the size of the loan as a proportion of the value of the property.
The new rates will be available to new and existing customers and will apply to owner occupier and buy to let mortgages.
The changes will take effect from July 1.
The state owned bank is also offering a new €2,000 contribution towards the professional fees for customers who switch to it.
The changes will mean that an owner occupier customers with a €200,000 mortgage on a 25 year term will save an additional €320 per annum.
This is the fourth rate reduction announced by AIB in 18 months.
In a statement, the bank said that its mortgage offerings will continue to evolve.
"We will be introducing more new features across our other brands over the coming months to further benefit customers and to give them the choices they are looking for," commented AIB's Managing Director of Retail, Business and Corporate Banking, Robert Mulhall.
Despite the latest cuts from AIB, Irish variable mortgage rates are still at least a full percentage point above the average for the rest of the euro zone.
This evening, KBC Bank Ireland followed suit with a range of cuts to its fixed and variable rate products which will take effect from next week.
The bank said it would cut its variable rate offering, where the loan to value is less than 80%, to 3.2%.
Where the loan to value is under 50%, the bank will cut its variable rate to 3.1%.
These changes only apply to individuals who open a current account with the bank.
It's also introducing cuts to a range of its fixed rate products.
KBC has also extended its offer of €2,000 towards professional fees for all mortgages switched to KBC up until end September 2016.
It also offers 50% off KBC home insurance for all new mortgage customers in year one.
