This is due to a sharp rise in the value of home loans issued in the last three months of last year by the member-owned bodies.
The Irish League of Credit Unions (ILCU) said that its members saw a 26pc rise in the value of their mortgage books in the first three months of this year.
ILCU members now have a combined €754m loaned out in mortgages. For the sector as a whole, the value of the loan books is €992m.
Credit unions only began to seriously offer mortgages in the last two to three years after regulatory changes that allow them to lend out up to €5.6bn in mortgages.
The ILCU, which represents 90pc of active credit unions in the State, said that the sector’s overall loan book has hit an all-time high of €6.54bn, with a jump in personal loans being issued.
The sector is in discussions to join the Zippay instant payments initiative launched last week by AIB, Bank of Ireland and PTSB.
Chief executive of the ILCU, David Malone, said that between October and December, credit unions issued more than 109,000 new loans.
David Malone, CEO of the Irish League of Credit Unions. Photo: Gerry Mooney
This is despite the fact this period is typically the slowest quarter for new personal loans, largely due to lower demand for car purchases and home improvements
A total of €659m in new lending was issued during the period, which is a 7pc increase on the total issued in the same period in 2024.
Mr Malone said this “sustained momentum” has driven the total credit union loan book to €6.54bn. This is a new all-time high that surpasses the previous historic peak of €6.21bn set in 2008.
Overall, the credit union mortgage book now stands at €992m
The average outstanding loan also rose to a new high of €11,094. The arrears figure is just 2.25pc, the ILCU said.
Mortgage lending continues to be a key driver of this growth, he said.
The total mortgage loan book among ILCU-affiliated credit unions reached €754m by the end of last December.
This represents a 6pc increase on the previous quarter and a 26pc rise year-on-year.
“Overall, the credit union mortgage book now stands at €992m, just short of the €1bn milestone,” Mr Malone said.
Mortgages now represent 11.5pc of the overall loan portfolio, up from 10.1pc in the October to December period in 2024.
Mr Malone said: “The sustained growth we are seeing has propelled the sector’s total loan book to a record €6.54bn, surpassing previous historic highs and marking a significant milestone for credit unions nationwide.”
He said credit unions are providing real choice in a hyper-concentrated market and offering vital supports to members at the most important financial moments in their lives.
At the end of last year, a standard mortgage product was launched by credit unions aimed at new home buyers and switchers.
Mortgages had been available through some credit unions around the country, but each credit union set its own interest rate at a local level.
The Credit Union Mortgage, launched last October, offers a single variable interest rate of 3.85pc, which is among the lowest variable rates in the market.
The rate is capped at 4.4pc for the first three years.
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