Market Size of Mexico Home Equity Lending Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Mexico Home Equity Lending Market Analysis
Mexico'so Home Equity Lending Market is expected to register at a CAGR greater than 5% during the forecast period.
The Home Equity loan Market is experiencing continuous 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 the home is the sum of mortgage debt and the value of the home. 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.
As a home equity loan is a second mortgage, and with the advent of Covid-19 mortgage lending has completely changed. Application for a mortgage became challenging with a decline in risk exposure of mortgage lenders and borrowers of home equity loans suffered with limited loan availability and stricter approval conditions. During the pandemic period, New housing was among the segment with the largest number of mortgage loans existing at around 75,000 in number.
Currently, the annual interest rate of mortgage loans in Mexico is varying in the range of (7 to 11)% with different banks offering different rates of interest. Over the last two years, real estate mortgage loans granted in Mexico is existing at around 0.5 Million annually. Currently, the inflation rate in Mexico is observing a decline from the pandemic level and is expected to provide relief to the lenders and risks associated with lending.
