First-time buyers account for almost two-thirds of mortgage transactions

First-time buyers continue to dominate the State’s mortgage market, accounting for almost two thirds of transactions.The latest figures from Banking and Payments Federation Ireland (BPFI) indicate there were 8,164 first-time buyer mortgages drawn down in the third quarter.This was “the highest Q3 volume since 2008”, the banking group noted. Three Government-backed programmes – the Help to Buy scheme, First Home scheme and the Local Authority Home Loan scheme – are helping fuel demand for first-time buyer mortgages.READ MOREA total of 14,217 mortgages with a value of €4.6 billion were drawn down by all borrowers between July and September this year.This represented a 13 per cent increase in volume terms and a 15.7 per cent increase in value compared with the same period last year.First-time buyers remained the single largest segment by volume (57.4 per cent) and by value (58.3 per cent).Re-mortgaging and switching volumes and values increased by 41.7 per cent and 50.9 per cent year on year respectively, the banking group said.[ What you need to know about financing a new-build homeOpens in new window ]BPFI chief executive Brian Hayes said: “Our latest figures show continued momentum across the mortgage market, with growth in drawdowns across every customer segment during the third quarter of 2026.”He noted there were 35,449 mortgage drawdowns valued at almost €11.4 billion in the first nine months of 2026, with volumes up by 8.2 per cent and values up by 12 per cent year on year.“First-time buyers continue to drive the mortgage market, accounting for almost six in every 10 drawdowns,” Hayes said.The BPFI said that 3,244 of first-time buyer mortgages drawn down in the third were for new properties, up 7.5 per cent year on year “and the highest Q3 level since 2007”. The increase in new properties was driven by mortgages on new-build property purchases rather than self-builds, where first-time buyer volumes fell by 5.8 per cent year on year to 666. The figure indicated that approvals activity also grew in September, up 13.3 per cent in volume and 17 per cent in value year on year, with growth recorded across both first-time buyer and mover purchase segments. [ Opinion: Subsidies like Help to Buy are no longer needed as homebuyer demand weakensOpens in new window ]Despite the increased activity, a recent report by the Society of Chartered Surveyors Ireland found that a first-time buyer couple with two incomes availing of the Government’s Help to Buy scheme still faced a considerable affordability gap when trying to buy a home in Dublin or surrounding counties.It found that buying couples on a combined income of €113,000 with a 10 per cent deposit (and with the Central Bank’s mortgage rules) would face a shortfall of almost €25,000 in Kildare, €20,500 in Wicklow and €11,500 in Meath.