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Residential property price segments and mortgage finance

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  • Gaffney, Edward

    (Central Bank of Ireland)

Abstract

I measure shares of mortgage finance in different price segments of the property market by comparing loan-level records of mortgage originations by Irish banks to the national register of property transactions between February 2015 and June 2018. Mortgage finance is more frequent at higher prices for all but the most expensive properties, rising from 5 per cent of purchases in the first price decile to 72 per cent in the ninth decile. The relationship between price and finance is similar in urban and rural regions. Price grew more quickly between 2015 and 2018 at lower price levels, where buyers rely less on mortgage finance.

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  • Gaffney, Edward, 2018. "Residential property price segments and mortgage finance," Financial Stability Notes 11/FS/18, Central Bank of Ireland.
    • Handle: RePEc:cbi:fsnote:11/fs/18
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    References listed on IDEAS

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    1. Crowe, Christopher & Dell’Ariccia, Giovanni & Igan, Deniz & Rabanal, Pau, 2013. "How to deal with real estate booms: Lessons from country experiences," Journal of Financial Stability, Elsevier, vol. 9(3), pages 300-319.
    2. Kinghan, Christina, 2018. "Macroprudential Measures and Irish Mortgage Lending: Insights from H1 2018," Financial Stability Notes 8/FS/18, Central Bank of Ireland.
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    4. Kinghan, Christina & Lyons, Paul & Mazza, Elena, 2018. "Macroprudential Measures and Irish Mortgage Lending: An Overview of 2017," Financial Stability Notes 1/FS/18, Central Bank of Ireland.
    5. Kinghan, Christina, 2018. "Macroprudential Measures and Irish Mortgage Lending: Insights from H1 2018," Financial Stability Notes 08-18, Central Bank of Ireland.
    6. Kinghan, Christina & Lyons, Paul & Mazza, Elena, 2018. "Macroprudential Measures and Irish Mortgage Lending: An Overview of 2017," Financial Stability Notes 01-18, Central Bank of Ireland.
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    Cited by:

    1. Gaffney, Edward, 2019. "Mortgage borrowers at the loan-to-income limit," Financial Stability Notes 11/FS/19, Central Bank of Ireland.
    2. McCann, Fergal & Durante, Elena, 2022. "The effects of a macroprudential loosening: the importance of borrowers’ choices," Research Technical Papers 9/RT/22, Central Bank of Ireland.
    3. McQuinn, Kieran & O’Toole, Conor & Slaymaker, Rachel, 2021. "Credit access, macroprudential rules and policy interventions: Lessons for potential first time buyers," Journal of Policy Modeling, Elsevier, vol. 43(5), pages 944-963.

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