The latest Banking and Payments Federation Ireland report reveals that first-time buyers are very much dominating the mortgage market, despite headwinds from rising property prices and European Central Bank interest rate increases.
BPFI's Mortgage Market Profile Report for the first half of 2023 shows that a total of 11,313 first time buyer mortgage drawdowns, valued at almost €3.2 billion, were made in the first six months of the year.
This marked the highest half yearly first-time buyers volumes and values since the first half of 2007.
Today's report shows that the median first-time buyers mortgage increased by €20,000 year on year in the first half of 2023 to €270,000, while the median mover mortgage rose by less than €4,000 to €290,500.
BPFI said that median basic household incomes increased by 6.5% for first-time buyers to almost €82,000, and by 5.2% for mover mortgages to more than €111,000.
57% of first-time buyers drawdowns now involve high-value mortgages of over €250,000 and high total household incomes (56%) of over €80,000, the highest proportions recorded either by BPFI or the Department of Housing.
The median first-time buyers' income on new property mortgages surpassed €100,000 in both Dublin and Kildare, increasing by about €12,000 and €11,000, respectively, BPFI noted.
Today's report also shows that the median age of main first-time borrowers rose to 35 for the first time while the share of first-time borrowers aged over 35 increased to 44%, from 36% in 2019 and only 17% in 2004, according to historical data from the Department of Housing.
Only 20% of first-time buyers borrowers were under the age of 30 years of age, down from 60% in 2004, which BPFI said may partly reflect higher borrower incomes as, on average, incomes rise in line with age.
BPFI also said that loan terms have remained stable with the median loan mortgage term for first-time buyers at 30 years since at least 2012 and the share of mortgages with loan terms over 30 years stable at about 40% for much of that time, with the longest loan term at 35 years.
Today's figures show that are significant regional variations.
While the median first-time buyers mortgage rose in all regions, the median mortgage increased by more than €26,000 in Kildare, Limerick and Meath.
On the other hand, in four regions (Border, Midlands, South and Mid West and West), the median first-time buyer mortgage was less than €215,000 and the median first-time buyer basic household income was €70,000 or less.
Brian Hayes, the CEO of BPFI, said today's figures, along with the positive mortgage approvals pipeline seen in recent months, establishes a solid foundation for a strong end to the year.
Sinn Féin finance spokesman, Pearse Doherty, said the data showed that the Government's housing crisis was deepening, with an entire generation locked out of home ownership.
"Today's mortgage data makes clear that under this Government, home ownership is becoming more difficult, more distant and more expensive for an entire generation," he claimed.
