Banks are reporting that last month was the strongest in 15 years for mortgage approvals in Ireland, according to the Banking and Payments Federation of Ireland (BPFI).
More than 5,000 property loans were given the green light in August valued at nearly €1.7 billion.
BPFI said mortgage lending volumes were up12% year on year and values were up by 15%.
First-time buyers remained the main driver of activity, accounting for almost 60 per cent of approvals during the month.
While there were 55,854 mortgage approvals in the twelve months to August 2026.
These were valued at almost €18.1 billion, exceeding €18 billion for the first time.
This indicates there is a healthy base for mortgage drawdowns for the rest of the year, according to BPFI Chief Executive Brian Hayes.
Commenting on the publication of the latest data, Mr Hayes said: “While activity eased from the July peak, this reflects the normal seasonal pattern, with mortgage approvals typically highest between May and July.”
The data shows that the value of mortgage approvals fell by 17.6% month on month but rose by 15.3% year on year.
While re-mortgage and switching activity rose by 36.1% in volume terms year on year, while the value increased by 39.9% over the same period.
Based on BPFI’s figures, the average first time buyer was approved for around €333,000 – up around 2 percent year on year.
The average mover’s approval was closer to €400,000 – while switchers were being approved for around €310,000.
Goodbody Chief Economist Dermot Dermot O’Leary noted the Irish housing market continues to outperform its European peers.
“The latest figures add to a growing body of evidence that the Irish housing market has remained remarkably resilient throughout 2026 despite a challenging and uncertain international backdrop.
“There are many inputs into this, including robust demand, relatively low interest rates, a significant supply deficit and supportive government policy.
“For now, these tailwinds are offsetting the obvious headwinds from higher ECB interest rates, energy price hikes and geopolitical uncertainties.
“We have seen some signs of a slowing in the labour market in Ireland, but it remains tight and real earnings continue to grow. Along with significant supports for homeownership, we believe this will contribute to further growth in mortgage lending over the coming twelve months.
“We expect gross mortgage lending growth of 7% this year, but the latest trends suggest this may be exceeded.”
