An Post has is set to enter the Irish mortgage market in 2019.
A spokesman says it plans to get into the market by the final quarter next year.
"We want to offer a greater range of financial services for our customers", he said.
The firm is looking for a partner for the offering, as it doesn't have a banking licence.
That process is to begin in the next couple of weeks.
It is to start offering homeloans to new house owners and also to mortgage switchers.
The offering will see rates of 1% less than what's currently on offer.
Irish lenders have been criticised for charging lending rates far higher than Eurozone averages.
File photo of a post office on Andrew's Street in Dublin | Image: Leah Farrell/RollingNews.ie
An Post is in the process of major change - after announcing the closure of 159 post offices and a major e-commerce drive last month.
Askaboutmoney founder Brendan Burgess says An Post's rates will be lower, but there are other good offers out there.
"The average mortgage rates in Ireland for new business is 3.2%, compared to 1.8% across the Eurozone - so that's 1.4% higher.
"So it looks as if they can just cut the rates by 1% and still be very profitable.
"But you can borrow money tomorrow from Ulster Bank for 2.3% for two years - you can get a mortgage from Bank of Ireland at 3% with 3% cashback".