Mexico Home Equity Lending Market Size
| 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 |
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.
Mexico Home Equity Lending Market Trends
Financial And Socioeconomic Factors Favouring The Market
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.
Last year North Area of Mexico was existing with the largest number of houses sold followed by the western and central areas with the State of Mexico and Mexico City having the largest number of economic units in the real estate sector existing at 7,000 and 6,000 in number signifying a large existing opportunity for Home equity lending in the region.
Rising Contribution Of Residential Real Estate In The Economy
Mexico City exists as the most expensive city for buying a home with the average price of real estate in the nation's capital city being 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.
The average price of Housing in Mexico had observed a significant rise over the years rising to USD 90,000 during the last year with a further increase observed. This price increase is leading households to borrow a significant sum for their home's construction, renovation, and other works.
Mexico Home Equity Lending Industry Overview
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.
Mexico Home Equity Lending Market Leaders
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Longbridge Financial LLC
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American Advisors Group (AAG)
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High Tech Lending
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Fairway Independent Mortgage
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Liberty Home Equity Solutions, Inc.
*Disclaimer: Major Players sorted in no particular order
Mexico Home Equity Lending Market News
- On August 2022, Rocket Mortgage, Mexico's largest mortgage lender and a part of Rocket Companies introduced a home equity loan to give Americans one more way to pay off debt that has risen along with inflation. Detroit-based Rocket Mortgage is enabling the American Dream of homeownership and financial freedom through its obsession with an industry-leading, digital-driven client experience
- On February 2023, Guild Mortgage, a growth-oriented mortgage lending company originating and servicing residential loans since 1960, increased its Southwest presence with the acquisition of Legacy Mortgage, an independent New Mexico-based lender. With this acquisition, the Legacy Mortgage team can offer borrowers a broader range of purchase and refinance loan options, including FHA, VA, USDA, down payment assistance programs, and other specialized loan programs.
Mexico Home Equity Lending Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rise in the price of Housing Units increasing Home Equity loan demand by borrower
4.2.2 Decline in Inflation and lending interest rate reducing lender risk
4.3 Market Restraints
4.3.1 Global economic fluctuation affecting the household construction market
4.3.2 The major segment of borrowing limited to New housing
4.4 Market Opportunities
4.4.1 Rising Investment in Mexico residential construction Post Covid
4.4.2 Increasing population in Mexico raising demand for residential housing
4.5 Industry Attractiveness - Porters' Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Types
5.1.1 Fixed Rate Loans
5.1.2 Home Equity Line of Credit
5.2 By Service Provider
5.2.1 Commercial Banks
5.2.2 Financial Institutions
5.2.3 Credit Unions
5.2.4 Other Creditors
5.3 By Mode
5.3.1 Online
5.3.2 Offline
6. COMPETITIVE LANDSCAPE
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.1 Bank Of America
6.2.2 LoanDepot LLC
6.2.3 Longbridge Financial LLC
6.2.4 MEX Home
6.2.5 ABC Bank
6.2.6 WaFd Bank
6.2.7 Bank of Albuquerque
6.2.8 Mexlend
6.2.9 Pinnacle Bank
6.2.10 New Mexico Bank And Trust*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Mexico Home Equity Lending Industry Segmentation
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's Home Equity Lending Market is segmented by type (Fixed rate loans and home equity lines of credit), by Service Providers (Commercial banks, Financial Institutions, Credit Unions, and other creditors), and by Mode (Online and Offline). The report offers market size and values in (USD million) during the forecasted years for the above segments.
Mexico Home Equity Lending Market Research FAQs
What is the current Mexico Home Equity Lending Market size?
The Mexico Home Equity Lending Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Mexico Home Equity Lending Market?
Longbridge Financial LLC, American Advisors Group (AAG), High Tech Lending, Fairway Independent Mortgage and Liberty Home Equity Solutions, Inc. are the major companies operating in the Mexico Home Equity Lending Market.
What years does this Mexico Home Equity Lending Market cover?
The report covers the Mexico Home Equity Lending Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Mexico Home Equity Lending Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Home Loans in Mexico Industry Report
Statistics for the 2024 Home Loans in Mexico market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Home Loans in Mexico analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
