The increase in median mortgage values was slower between 2020 and 2022 than the rise recorded in property prices over the same period, according to new figures compiled by the Banking and Payments Federation Ireland (BPFI).
The new data shows that while the median value of properties purchased by first time buyers rose by €35,000 over the three years to €320,000, the median mortgage increased by only €24,000 to €254,000.
Reacting to the findings, chief executive of the BPFI, Brian Hayes, said: “There has been a sharp rise in residential property prices from the middle of 2021, resulting in the continued increase in mortgage drawdown values we've seen in recent months.
“Property prices continue to increase year on year, albeit at a slower rate, and it remains a difficult environment for many buyers. However, the latest Mortgage Market Profile Report indicates that borrowers are being prudent and bringing more equity to purchases, likely in order to minimise borrowing costs.
“This also likely reflects the trends we’ve seen in household saving, with the current rate of around 20% compared to about 10% pre-pandemic," he said.
The report, which covers the second half of last year, shows median monthly mortgage repayments nationally stood at €1,089 for first-time buyers, up €100 from the same six month period in 2020.
For mover purchasers average median monthly repayments grew around €140 over the same period to €1,406.
First-time buyers continue to dominate the mortgage market, with the volume of drawdowns in that segment, at 14,018, hitting the highest semi-annual level since 2007.
Across different regions there was significant differences in repayments.
Median first-time buyer repayments in Dublin, Cork, Kildare, Meath, Wicklow and Galway were over €1,000 but in the remainder of the country, more than half of first-time buyers were making repayments up to €1,000.
In the west of Ireland, almost two thirds of new properties financed by home mortgages were self-builds in the second half of 2022, down from 76% in the same period in 2020.
"While the European Central Bank began increasing its base interest rates in July 2022, we're not yet seeing the full impact within these figures," said Mr Hayes.
"We expect to have better visibility of that impact in the coming months as we continue to monitor trends," he stated.
