A consumer index study from the Irish Business and Employers Confederation (IBEC) has that Homeowners may be €700 better off each year.
The reduction of mortgage interest rates are expected to result in a 2.4% rise in the amount of discretionary income householders have by the end of this year.
However, the index also showed that while mortgage holders may see their spending power increase, other groups could end up worse off.
IBEC chief economist Fergal O’Brien said the Government needs to consider consumers and their different circumstances in its efforts to revive the economy.
“A significant number will see their spending power increase this year, due to falling interest rates, modest pay rises and the absence of significant additional taxation,” Mr O’Brien went on.
“The Government’s approach to reviving activity in the domestic economy needs to be tailored to reflect the different types of consumer and their different circumstances.”
The European Central Bank is also expected to reduce its rate by a further 0.5% in the coming months, which will have a positive effect on householders.
The Irish Consumer Monitor report from IBEC found non-mortgage holders could see their discretionary income drop between 0.8% and 3.7%