Positive growth in lending to home movers also meant there was strong overall lending levels for house purchase in Wales, which is at its highest quarterly level since 2009.
A total of 2,900 loans were advanced to first-time buyers in the third quarter of 2013 which was an increase on the 2,600 loans in the second quarter and up from 2,200 in the third quarter of 2012.
In value, third quarter first-time buyer loans totalled £290m in Wales, up 12% from the second quarter and up by 38% compared to the same period last year.
The average value of the loans also increased to £94,500 in the third quarter compared to £93,475 in the second quarter.
The typical deposit of first-time buyers in Wales remains at 15%, something that has not changed since the third quarter of 2011 and lower than the 20% typical deposit size seen on average throughout the UK.
Growth in lending to home movers was not as strong as first-time buyers although remains positive, 3,600 loans were advanced in Wales, worth £450m, which was an increase of 13% in volume on the second quarter and up 3% compared to the same period last year.
Total house purchase lending - covering both first-time buyers and movers - in Wales has shown growth in comparison to the second quarter of 2013 and last year.
Overall 6,500 house purchase loans were advanced in Wales in the third quarter which was an increase of 12% on the second quarter of 2013 and the third quarter last year.
This total value of these loans amounted to £740m which was also up by 16% on the third quarter of 2012.
Remortgage lending increased in Wales in the third quarter with £400m advanced in total, which was an increase of 11% compared to the second quarter of 2013 and up 33% compared to the third quarter of last year.
In value, third quarter remortgage lending totalled £400m, up from £360m in the second quarter this year and up from £300m in the third quarter of 2012.
Peter Hughes, chairman of CML Cymru, said: "The positive growth for first-time buyers in Wales suggests the market conditions are improving for them.
“The upward trend in remortgages after a period of subdued activity and the increase in home movers shows increasing confidence which is encouraging as we head towards the end of the year.
"Help to Buy – Wales Equity Loan scheme launches in the New Year and the CML has worked closely with lenders and the Welsh Government to make the scheme specific to what the Welsh market needs.
“We welcome the added support to house builders and people aspiring to get on the housing ladder.”
