Loan Books Topped €6bn as Credit Unions Step Up for Irish Homebuyers

Mortgage lending by credit unions has reached a major milestone in Ireland. As reported by The Irish Independent, loan books topped €6bn, the highest level since the financial crisis. Lending is up 34% this year alone, highlighting a clear trend: more people are turning to credit unions instead of traditional banks. 

This isn’t just a sign of recovery. It’s a reflection of how credit unions are becoming a reliable choice for Irish homebuyers seeking a fairer, more supportive lending experience. 

Let’s explore what’s driving this shift, and what it means for future borrowers. 

Loan Books Topped €6bn as More Irish Choose Credit Unions for Mortgages 

At a time when trust in major brands continues to fluctuate, credit unions top the Ireland Reputation Index by offering something different. They are local, member-focused, and guided by community values. The profits don’t disappear into large institutions. Instead, they are reinvested back into local people, services, and causes. 

This human approach matters, especially when someone is making their biggest financial decision like buying a home. Many people feel overwhelmed by aggressive mortgage sales or unclear terms. What they’re looking for is clarity and compassion.

 

Credit unions offer exactly that. They don’t pressure. They listen. Members are offered choices based on what they can afford and what suits their life goals. It’s a calm and trusted process built on financial wellbeing rather than profit targets. 

That’s why so many first-time buyers are choosing credit unions. They want financial partners who care about the long run, not just the loan. 

Credit Unions Are Not Trying to Be Banks 

The rise in mortgage lending does not mean credit unions are copying banks. In fact, it’s the opposite. 

Credit unions are not for shareholders. They are for members. When you apply for a mortgage, you’ll speak with someone who knows your name. That personal connection makes a real difference. 

So, while loan books topped €6bn across Ireland, the real story lies in how credit unions achieved this. It wasn’t through slick sales pitches or rigid policies. It was through trust, transparency, and years of steady relationship-building. 

Credit unions are not aiming to become banks. They are aiming to become something more meaningful. 

The Hidden Potential 

Credit unions already offer competitive interest rates, personalised service, and larger loan amounts. However, they face limits due to current lending rules. At present, credit unions can only lend up to 7.5% of their overall assets as mortgage. 

To put this into perspective, let’s take XYZ Credit Union as an example. XYZ Credit Union’s total assets are valued at €355 million. At the current 7.5% limit, they can lend €26.62 million as mortgages. 

There is a proposal to increase mortgage lending limit from 7.5% to 30%. 

If these changes take effect, credit unions would be able to lend significantly more. Using the proposed 30% limit, XYZ Credit Union could lend up to €106.5 million in mortgages. That’s roughly 300% more than what they can offer with the current limit. 

THAT IS INSANE. This increase will help credit unions grow and contribute even more to their communities. 
 

How MFCU Mortgage Can Help You 

Being one of Ireland’s largest credit unions, MFCU aims to offer a mortgage that truly meets the needs of our members. Whether you’re buying your first home or thinking about switching your mortgage, MFCU Mortgage is designed to support you. You can borrow up to €500,000 at a competitive rate of 3.95%, with repayment terms up to 35 years. 

We take the time to understand your situation and provide advice that suits your financial wellbeing. Our approach is personal and local, with clear mortgage terms, quick decisions, and friendly support from people who know the area. We’re here to help you take your next step towards homeownership. 

If you’d like to learn more or apply, please get in touch.