First-time-buyer mortgage drawdowns reach 20-year high

A total of 9,437 new mortgages to the value of €3,034m were drawn down by borrowers during the first three months of the year, new data shows

New properties, including self-builds, accounted for over a third (35.8%) of home purchase mortgage drawdowns.

Mortgage drawdowns in the first quarter surpassed €3bn, with first-time buyers seeing the largest number in almost two decades.

New data from Banking & Payments Federation Ireland (BPFI) shows a total of 9,437 new mortgages to the value of €3,034m were drawn down by borrowers during the first three months of 2026. It represents an increase of 2.4% in the volume and 7.8% in the value of mortgages compared to the first quarter of 2025.

This was driven primarily by first-time buyers, with 5,626 first-time buyer drawdowns valued at more than €1.8bn. These were the strongest first-quarter first-time buyer volumes since 2007, and the highest values since 2006.

First-time buyers continue to dominate the mortgage market here, remaining the single largest segment by volume (59.6%) and by value (60.6%).  

New properties, including self-builds, accounted for over a third (35.8%) of home purchase mortgage drawdowns. Home mortgage drawdowns on new properties reached the highest first-quarter levels since 2008, up 15.1% in volume and 22.3% in value year-on-year. 

"This increase was driven mainly by FTB [first-time buyer] mortgages on new properties, which rose in volume by 18.3% to 2,252 and by 25.3% in value to more than €792m, the highest Q1 value since 2007," Brian Hayes, chief executive of BPFI said.

"In contrast, mover purchase activity remained subdued, with volumes down 9.4% year on year to 1,768, the lowest first-quarter level since 2014. As expected, quarterly activity fell across all segments compared with Q4 2025, reflecting seasonal patterns, with Q4 typically the busiest period of the year for drawdowns and Q1 being the quietest," he said.

"The second-hand homes segment accounted for almost two-thirds of home mortgage drawdowns — its share continued to contract, with volumes down 4.2% and values down 0.9% year-on-year. This was the first time since Q3 2024 that the value of mortgages on secondhand properties has fallen in year-on-year terms, but the fifth consecutive quarter in which volumes have fallen. 

"Drawdown volumes on secondhand properties have fallen in 10 of the past 13 quarters.

The BPFI data for mortgage approvals for March was broadly stable, down slightly year-on-year by 0.9%, and values rising 0.9%. On an annualised basis, the value of mortgage approvals reached a new high of almost €17bn in the 12 months to March. 

The value of first-time buyer approvals reached €10.57bn over the same period, the highest level since the series began in 2011, and more than twice the value recorded in the 12 months ending March 2019. 

"By contrast, mover purchasers accounted for just 17.3% of approval volumes and 20.4% of values in March, the lowest shares since this series began in 2014," Mr Hayes said.

The BPFI has said the level of new home construction looks encouraging for the year ahead. 

However, it said a significant increase in the commencement activity in the first half of this year would be required to sustain output beyond 2026, given the fact commencements of about 16,500 last year were at their lowest levels since 2016, and half the levels observed in 2023.