More than 8,000 new mortgages were drawn down between July and the end of September, according to figures from the Banking & Payments Federation of Ireland.
The total value of these mortgages was in excess of €1.5 billion, a 17% increase on the value of mortgages drawn down in the same quarter last year.
The volume of loans was up by almost 14% on last year and by almost a fifth on the previous three month period.
First time buyers accounted for almost half of the loans drawn down in the quarter.
The number of remortgaged loans, accounted for by individuals switching providers, more than doubled.
674 re-mortgaged loans were drawn down in the quarter at a combined value of €142m.
Mortgage approvals also continued to grow strongly, suggesting further pent-up demand for house purchase.
In September, the value of approvals grew by 40% year on year, following a 55% increase in in August.
Goodbody economist Dermot O'Leary said the figures had led them to increases their mortgage lending forecasts for this year and next year.
"We now expect gross lending of €5.7 billion in 2016, up from €5.2 billion previously, with a forecast of €6.7 billion pencilled in for 2017, up from €6.1 billion previously. This would represent growth of 17% and 19%, respectively," he said.
