PUBLISHER: The Business Research Company | PRODUCT CODE: 1619659
PUBLISHER: The Business Research Company | PRODUCT CODE: 1619659
Home equity lending involves a loan or line of credit that allows homeowners to borrow money using the equity in their home as collateral. This type of lending can be utilized for a variety of purposes, including home improvements, debt consolidation, educational expenses, or other significant financial needs.
The primary types of home equity lending include fixed-rate loans and home equity lines of credit (HELOCs). Fixed-rate loans are a form of home equity loan where the interest rate remains unchanged throughout the loan term. These loans can be offered through various channels, including online and offline deployment modes. The lending services are provided by different institutions, such as banks, online platforms, credit unions, and others.
The home equity lending market research report is one of a series of new reports from The Business Research Company that provides home equity lending market statistics, including home equity lending industry global market size, regional shares, competitors with a home equity lending market share, detailed home equity lending market segments, market trends, and opportunities, and any further data you may need to thrive in the home equity lending industry. This home equity lending market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The home equity lending market size has grown steadily in recent years. It will grow from $28.06 billion in 2023 to $29.23 billion in 2024 at a compound annual growth rate (CAGR) of 4.1%. The growth during the historic period can be attributed to several factors, including the surge in property prices, the increasing demand for collateral as a risk mitigation strategy by banks, the comparatively higher price rise in housing markets, population growth, and the rise in homeowner equity in real estate.
The home equity lending market size is expected to see steady growth in the next few years. It will grow to $34.73 billion in 2028 at a compound annual growth rate (CAGR) of 4.4%. The projected growth during the forecast period can be attributed to several factors, including the shift towards remote work, increasing real estate prices, a rise in home renovation activities, growth in residential properties, and higher disposable income. Key trends expected in this period include technological advancements and fintech innovations, the adoption of cloud banking software by banks, improvements in the home equity borrowing process, and the use of data-driven tools such as artificial intelligence (AI) and machine learning (ML) to automate banks' decision-making processes.
The increase in residential properties is expected to drive the growth of the home equity lending market in the future. Residential properties refer to real estate assets used for living accommodations, including single-family homes, apartments, and condominiums. The rise in residential properties can be attributed to factors such as infrastructure development, changes in zoning laws, proximity to workplaces, a growing preference for homeownership, and general inflation. Home equity lending benefits homeowners by allowing them to leverage the increased value of their property, providing funds for improvements, debt consolidation, or other financial needs, which in turn can enhance property value and overall marketability. For instance, according to the Australian Bureau of Statistics, in March 2024, the number of private new house dwellings in Australia reached 30,992, reflecting a 3.7% increase from December and a 14.6% rise since March 2023. Additionally, private and other residential completions rose to 14,844 dwellings, a 5.6% increase compared to December 2023. Therefore, the growth in residential properties has fueled the expansion of the home equity lending market.
Leading companies in the home equity lending market are focusing on adopting advanced solutions, such as real estate finance solutions utilizing eVault technology, to streamline the loan application process, enhance customer experience, and provide flexible financing options tailored to diverse borrower needs. eVault technology enhances the efficiency, security, and compliance of managing electronic loan documents, benefiting both lenders and borrowers by simplifying and securing the lending process. For example, in May 2022, Wolters Kluwer N.V., a Netherlands-based information services company, launched its OmniVault for Real Estate Finance solution. This platform ensures compliance with legal standards and offers a digitally sealed audit trail, improving the security and traceability of digital transactions. The innovative platform uses advanced eVault technology to facilitate digital home equity lending, particularly for Home Equity Lines of Credit (HELOCs) and home equity loans, along with conventional, government-backed, and jumbo first mortgages.
In September 2023, Cerberus Capital Management, a US-based investment firm, acquired Spring EQ for an undisclosed sum. This acquisition marked a strategic move by Cerberus Capital to expand its portfolio by incorporating Spring EQ's expertise in providing home equity financing solutions. Spring EQ is a US-based company specializing in home equity and purchase loans.
Major companies operating in the home equity lending market are Bank Of America Corporation, HSBC Holdings PLC, Toronto-Dominion Bank, BMO Bank N.A., U.S. Bancorp, PNC Financial Services Inc., Discover Financial Services Inc., Citizens Financial Group Inc., M&T Bank Corporation, Regions Financial Corporation, Key Corp Limited, Rocket Mortgage LLC, Navy Federal Credit Union, HomeBridge Financial Services Inc., New American Funding Inc., Zillow Group, LoanDepot LLC, PenFed Credit Union, Simmons First National Corporation, Network Capital Funding Corporation, Spring EQ LLC
North America was the largest region in the home equity lending market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the home equity lending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the home equity lending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The home equity lending market includes revenues earned by entities by traditional home equity loans, home equity line of credit, and, cash-out refinance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Home Equity Lending Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on home equity lending market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for home equity lending ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The home equity lending market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.