Allied Market Research

2024

Home Equity Loans Market

Home Equity Loans Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, by Service Providers, by Deploymenta and, by Uses : Global Opportunity Analysis and Industry Forecast, 2023-2032

BI : Insurance

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Author's: | Onkar Sumant
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Home Equity Loans Market Outlook - 2027

Home equity loans market size has attained a significant growth and is expected to follow the same trend during the forecast period. A home equity loan is a type of consumer debt or second mortgage. It allows owners of homes to borrow money against equity in their residence. It is a second mortgage, from the first mortgage one purchases the property, and can take additional loans against this property if have built up enough equity. The amount that a client can borrow from home equity loan is the value of the property minus the amount of any outstanding mortgages on the property. Home equity loans provide a large amount of money and is considered to be easier to qualify for other types of loans as well as putting property as collateral.

Covid-19 Scenario Analysis:

  • A home equity loan is a second mortgage, and mortgage lending has been totally changed during the coronavirus pandemic. It will be more challenging to obtain a mortgage.
  • The risk exposure by the mortgage lenders have been reduced so; the borrowers of home equity loans should expect limited loan availability and the approval requirements will be tougher.
  • Due to coronavirus pandemic lenders are dealing with demand and staffing issues

Top Impacting Factors: Market Scenario Analysis, Trends, Drivers And Impact Analysis

Rise in home prices, trending home improvements and innovations, tax deduction of the interest, less payment of interest as compared to other ways of borrowings, availability of lump sum amount of cash up front, and fixed monthly payments are the factors which act as driver for the global home equity loans market. However, risk of losing your home in case of failure in making loan payments, high closing cost, cash-out refinancing, reverse mortgages and time consuming process are the factors which act as hindrance for the global home equity loan market. Furthermore, strong appetite for the home equity loan and being better option as compared to other ways of borrowing are the factors which act as lucrative opportunity for the global home equity loans market.

The global home equity loans market trends are as follows

Surge in the prices of the home boosted home equity

There is a rise in value of homes globally. According to the Federal Housing Finance Agency the prices of the houses rose 6.5% from the second quarter of 2017 to the second quarter of 2018. With the steady surge in the prices of home, homeowners are becoming more equity rich and will be able to tap into the reserve available. It is expected that homeowners will continue to tap home equity loan more in the forecasted period. As home equity loans are given against the appreciation in the market value of the property so surge in the prices of property will provide good amount of margin to take loan against it.

Technological advancements in home equity borrowing process

There is increase in technology-savvy homeowners in the market, so there is more need for digitalization in the process of home equity loan. There is an increase in investments in the automation of mortgages. Data and technology solutions are increasingly used by lenders to survive and grow in the market. In addition, digitalization in the loan origination process helps technology henceforth, reducing friction in the process. The use of artificial intelligence is increasingly adopted by home equity loan originators to give personal touch and personal advice. Henceforth, advancements in the technology provides an easy way for clients to take loans.

Key Benefits Of The Report:

  • This study presents the analytical depiction of the global home equity loans market along with the current trends and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global home equity loans market share.
  • The current market is quantitatively analyzed to highlight the global home equity loans market growth scenario.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
  • The report provides a detailed global home equity loans market analysis based on competitive intensity and how the competition will take shape in coming years.

Questions Answered In The Global Home Equity Loans Market Research Report:

  • What are the leading market players active in the global home equity loans market forecast?
  • What the current trends will influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities in the market?
  • What are the projections for the future that would help in taking further strategic steps?

Home Equity Loans Market Report Highlights

Aspects Details
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By Type
  • Fixed rate loans
  • Home equity line of credit
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By Service Providers
  • Local loan originator
  • Banks
  • Online
  • National broker
  • Credit unions
  • Others
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By Deploymenta
  • Online
  • Offline
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By Uses
  • Home improvement
  • Major purchases or appliances
  • Tuition or education costs
  • Medical expenses
  • Debt consolidation
  • Unplanned expenses
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Spain, Italy, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Bank of America Corporation, TBK BANK, U.S. Bank, Pentagon Federal Credit Union, Discover Bank, Spring EQ LLC, SSB, The PNC Financial Services Group, Inc., Member FDIC, LoanDepot LLC

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Home Equity Loans Market

Global Opportunity Analysis and Industry Forecast, 2023-2032