Global Home Equity Loan Market Overview:
Home Equity Loan is basically a second mortgage against an individualís residential property. This allows individual homeowners to borrow capital against the equity of residential property which can be called collateral in this case. The amount of loan to be sanctioned under this scheme is derived from the equity value of the home as set by banks or credit unions. This type of loan, specifically, HELOCs was quite popular from 2004 to 2007 till the mortgage financial crisis. Following this, recently the home equity loan market started gaining popularity, with consumers being more conservative this time around and preferring the fixed-rate loans segment. Such Home Equity Loans are widely used for home restoration, educational expenses like tuition fees or medical expenses, and other personal financial requirements. Geographically, North America is the most dominant market the Home Equity Loans, which is expected to remain so. Some of the players profiled in the study are Bank of America Corporation (United States), Citibank (United States), Truist Financial Corp. (United States), Reali Loans (United States), U.S. Bank (United States), Flagstar Bank (United States), Guaranteed Rate IL (United States), PNC Bank (United States), Discover Financial Services (United States) and Pentagon Federal Credit Union (United States).
On the basis of geography, the market of Home Equity Loan has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Sales Channels, the sub-segment i.e. Banks will boost the Home Equity Loan market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Loan Slab , the sub-segment i.e. Self-Occupied Residential Property will boost the Home Equity Loan market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Market Growth Drivers
- Home Price Appreciation
- Large Scale Penetration of Home Loan Market
- Consumer Lifestyle and Behavioural Changes
- Local Credit Unions are Highly Preferred during Home Equity Loans due to Lower Interest Rates than Banks
- Fixed-Rate Loans are widely preferred since the 2007 Mortgage Crisis
- Dynamic Changes in Regulations Surrounding Home Equity Loans
- Asia Pacific Market has been Less Explored in Terms of Home Equity Loan Market Expansion
- Launching Innovative Products in order to Get Competitive Edge over a Large Number of Small and Big Competitors
- Lower Margins for the Lenders
- Irregularities in Interest Rates with Home Equity Loans compared to Mortgage and Home Loans
- Volatility in Equity
In 2020, Pentagon Federal Credit Union, one of the largest credit unions in North America have announced merger plans with Sperry Associates Federal Credit Union. The members of the Sperry voted in favor of the merger. And with the completion of the merger, both the credit unions are expected to strengthen their product portfolio and market reach.
US Congress has sanctioned the Home Equity Loans Consumer Protection Act (HELCPA) which regulates the Disclosure and Advertising of Home Equity Loans
Target Audience:Home Equity Loan Providers, New Entrants/Investors, Venture Capitalists and Private Equity Firms, Analysts and Strategic Business Planners, Government Regulatory and Research Organizations, End-Use Industries and Others
Major Objectives Focused through this Study To define, describe, and forecast the Global Home Equity Loan market on the basis of product [Fixed-Rate Loan and Home Equity Lines of Credit (HELOCs)] , application [Medical Expenses, Educational Expenses, Home Restoration, Debt Consolidation and Others], key regions and end user
To provide in-depth information regarding major influencing factors affecting the growth of the market (trends, drivers, restraints, opportunities, and industry-centric and regional challenges)
To strategically analyse the micro-markets and important business segments with respect to individual growth drivers , market trends and potential, and historical contributions to the total market
Identifying the opportunities in the market for key stakeholders and detailing the competitive landscape for market leaders
To provide market size for various segments of the Home Equity Loan market with respect to major geographies, namely, South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico)
To strategically profile the key players and analyzing their market shares and core competencies in the Home Equity Loan industry
To track key developments such as product launches, expansions, agreements, partnerships, mergers & acquisitions, and R&D activities that are key factors in shaping the market
Available Customization: Data related to EXIM [Export- Import], production & consumption by country or regional level break-up can be provided based on client request**. Additionally, the Players which are also part of the research are TBK BANK (United States), Connexus Credit Union (United States) and LoanDepot LLC (United States).
** Confirmation on availability of data would be informed prior purchase
While framing the research framework, major and emerging players operating in the Home Equity Loan market in various regions have been profiled, and their offerings, geographic footprints, and distribution/sales channels have been analysed through in-depth discussions. The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, analyst team keeps preparing set of questionnaires and after getting appointee list; the target audience are then tapped and segregated with various mediums and channels that are feasible for making connection that includes email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey etc.