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Friday, May 17, 2024

Credit Unions Dominate Mortgage Market With Affordability


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In the realm of mortgage lending, credit unions have carved out a significant presence by offering unparalleled affordability and competitive interest rates, giving them an edge over traditional banking institutions and non-bank lenders.

This shift towards credit unions as the go-to choice for various borrower profiles has sparked curiosity within the industry. With a substantial increase in mortgage approvals and a promising outlook for the future, it prompts a closer examination of how credit unions are reshaping the mortgage market landscape.

Growing Credit Union Mortgage Market

By witnessing a substantial surge in mortgage lending activities, credit unions are an emerging force in the growing credit union mortgage market. With around 100 credit unions now offering mortgages, there has been a notable increase in mortgage lending volumes. Last year, credit unions processed approximately €200m in mortgage lending and are projected to reach around €1bn in the next three to four years.

The total number of credit union mortgages issued last year stood at 1,800, marking an 80% increase from the previous year. Moreover, the average mortgage amount approved by credit unions has risen by 70% since 2018, showcasing the significant growth and expansion of credit unions in the mortgage lending sector.

Enhanced Mortgage Offerings by Credit Unions

Witnessing a remarkable surge in mortgage lending activities, credit unions are expanding their mortgage offerings to meet the increasing demand for alternative mortgage options. This financial year, credit unions are on track to provide €150m or more in mortgage offers, with the average property value for credit union mortgages now at €342,000.

The average mortgage term has also increased from 18 years in 2018 to 23 years in 2023. Notably, more than a third of borrowers are individuals, while 65% are couples. Additionally, credit unions are expected to offer mortgages to all members through formal arrangements with other credit unions, showcasing a collaborative approach to meeting the evolving needs of borrowers in the market.

Meeting Demand for Alternative Mortgages

The increasing demand for alternative mortgage options is driving credit unions to expand their offerings to cater to a broader range of borrowers. As borrowers face rising interest rates and property prices, credit unions are emerging as a viable alternative to traditional banks. With a focus on meeting this growing demand, credit unions are stepping up to provide competitive mortgage options.

Legislative changes that will allow credit unions to refer members to other credit unions for mortgage services further support this trend. This increased member appetite for mortgage loans is pushing credit unions to enhance their mortgage lending capabilities, positioning them as key players in the evolving mortgage market landscape.

Legislative Support for Credit Unions

Amid legislative changes aimed at bolstering credit unions’ role in the mortgage market, a notable shift is occurring in the financial landscape.

New legislation now allows credit unions to offer mortgages to members of other credit unions, promoting collaboration within the sector. Legislators have actively encouraged credit unions to expand their lending capacities, enabling them to provide a more extensive range of financial services, including home loans, to their members.

With these regulatory changes, credit unions have enhanced their ability to meet the growing demand for alternative mortgage options. Soon, every credit union in the country will be able to offer mortgages through formal arrangements, solidifying their position as key players in the mortgage market.


In conclusion, credit unions have established themselves as dominant players in the mortgage market by offering unparalleled affordability and attractive interest rates.

With legislative support and expanded services, credit unions are poised to continue their growth in mortgage lending, meeting the evolving needs of borrowers seeking cost-effective financing solutions.

The future of credit union mortgage lending looks promising, as they cater to a competitive market with their competitive rates and customer-focused approach.

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Owen is an excited writer with over 10 years of experience in the newspaper industry. Born and raised in Ireland, Owen developed a passion for writing and journalism at a young age. He pursued this passion by studying journalism in college and quickly landed a job as a reporter at a local newspaper. Over the years, Owen worked his way up the ranks in the newspaper industry, eventually becoming one of the top editors in the company.

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