Mexico Home Equity Lending Market - Growth, Trends, COVID-19 Impact, And Forecasts (2022-2027)

Mexico Home Equity Lending Market is segmented by type (Fixed rate loan and home equity lines of credit), by Service Providers (Commercial banks, Financial Institutions, Credit Unions, and other creditors), and by Mode (Online and Offline).

Market Snapshot

Mexico Home Equity Lending Market Size
Study Period: 2018-2027
Base Year: 2021
CAGR: >5 %
Mexico Home Equity Lending Market Major Players

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Market Overview

The market for home equity loans has experienced tremendous expansion and is anticipated to continue in this direction over the next several years. Homeowners can borrow money using home equity loans as collateral. The equity in your home is the sum of your mortgage debt and the value of your home. Borrowers who wish to use the money for home renovation projects, the repayment or consolidation of high-interest debt, or both frequently turn to home equity loans. Due to a significant rise in home prices, banks and credit unions now have a significant growth opportunity in home equity loans and lines of credit.

A home equity loan is a second mortgage, and mortgage lending has completely changed since the coronavirus outbreak. Application for a mortgage will be more challenging. Due to the decreased risk exposure of mortgage lenders, borrowers of home equity loans may anticipate a limited loan availability and stricter approval conditions. Due to the coronavirus outbreak, lenders are dealing with issues related to demand and manpower.

Scope of the Report

Home equity loans are a particular kind of loan where the borrower pledges the value of their house as security. The property's value determines the loan amount, and an appraiser from the lending institution determines the property's value. Mexico Home Equity lending Market is segmented by type (Fixed rate loan and home equity lines of credit), by Service Providers (Commercial banks, Financial Institutions, Credit Unions, and other creditors), and by Mode (Online and Offline).

By Types
Fixed Rate Loans
Home Equity Line of Credit
By Service Provider
Commercial Banks
Financial Institutions
Credit Unions
Other Creditors
By Mode
Online
Offline

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Key Market Trends

Rise in Housing Infrastructure would propel demand for Home Equity Lending

The development of residential infrastructure is aided by the growing population, the growing need for decent housing and infrastructure, and the tendency toward nuclear families. The factors that drive the Mexico home equity lending market include rising home prices, popular home innovations and improvements, tax deductions for interest payments, lower interest payments when compared to other borrowing methods, the availability of lump sum cash upfront payments, and fixed monthly payments.

Mexico Home Equity Lending Market Trends

Surge in House Prices Boosting Home Equity Lending Market

Mexico City was the most expensive city to buy a home in the first quarter of 2022. The average price of real estate in the nation's capital city is about three million Mexican pesos or roughly double the national average. With a contribution to the GDP of over 6%, the housing sector is one of Mexico's most essential and steady markets. With only 15% of homes being rented, the market is mainly an owner's market, with approximately 69 % of properties in the nation fully paid off by their owners. Nationally, housing costs had been rising until the start of 2021. The country saw a 15% increase in residential property prices between Q1 2020 and Q1 2021.

Mexico Home Equity Lending Market Growth

Competitive Landscape

The report covers major players operating in the Mexico Home Equity Lending Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and product innovation, mid-size to large-size companies are increasing their market presence by securing new contracts and tapping new markets.

Recent Development

  • In 2022, Less than 5% down payment is required for conventional, FHA, VA, ARM, HELOC, and refinancing loans from Bank of America. For eligible Bank of America customers, the lender offers an annual percentage rate or closing cost savings.
  • On May 3 2022, LoanDepot LLC is set to launch all digital Mello HELOC as rising interest rates and high inflation make home equity lines of credit a smart source of capital for many homeowners.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Insights on Various Regulatory Landscape

    5. 4.5 Insights on impact of technology and innovation in the Market

    6. 4.6 Value Chain Analysis

    7. 4.7 Industry Attractiveness - Porters' Five Forces Analysis

      1. 4.7.1 Threat of New Entrants

      2. 4.7.2 Bargaining Power of Buyers

      3. 4.7.3 Bargaining Power of Suppliers

      4. 4.7.4 Threat of Substitutes

      5. 4.7.5 Intensity of Competitive Rivalry

    8. 4.8 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Types

      1. 5.1.1 Fixed Rate Loans

      2. 5.1.2 Home Equity Line of Credit

    2. 5.2 By Service Provider

      1. 5.2.1 Commercial Banks

      2. 5.2.2 Financial Institutions

      3. 5.2.3 Credit Unions

      4. 5.2.4 Other Creditors

    3. 5.3 By Mode

      1. 5.3.1 Online

      2. 5.3.2 Offline

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concetration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Bank Of America

      2. 6.2.2 LoanDepot LLC

      3. 6.2.3 Longbridge Financial LLC

      4. 6.2.4 American Advisors Group (AAG)

      5. 6.2.5 HighTech Lending Inc

      6. 6.2.6 Fairway Independent Mortgage

      7. 6.2.7 Finance of America Reverse LLC (FAR)

      8. 6.2.8 HayLiberty Home Equity Solutions, Inc.

      9. 6.2.9 Mutual of Omaha Mortgage

      10. 6.2.10 Open Mortgage LLC

      11. 6.2.11 Reverse Mortgage Funding LLC*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

**Subject to Availability

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Frequently Asked Questions

The Mexico Home Equity Lending Market market is studied from 2018 - 2027.

The Mexico Home Equity Lending Market is growing at a CAGR of >5% over the next 5 years.

Longbridge Financial LLC, American Advisors Group (AAG), High Tech Lending, Fairway Independent Mortgage, Liberty Home Equity Solutions, Inc. are the major companies operating in Mexico Home Equity Lending Market.

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