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Mortgage Lender Market

Mortgage Lender Market: Information by Type (Conventional Mortgage Loans), Term (30-Year Mortgages, 20-Year Mortgages), Interest Rate (Fixed-Rate Mortgage Loans), Provider (Primary Mortgage Lender), and Region—Forecast Till 2031

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Market Overview

The global mortgage lender market size was valued at USD 11 billion in 2022 and is projected to reach USD 25 billion by 2031, registering a CAGR of 9.6% during the forecast period (2023 to 2031).

A mortgage loan, often known as a mortgage, is used by real estate buyers or current property owners to obtain funds for any purpose while imposing a lien on the mortgaged real estate. A mortgage is a loan granted by a bank or other financial institution to help purchase a home. The collateral for the Mortgage is the real house. In other words, if the borrower stops making regular payments to the lender and defaults on the loan, the lender may sell the property to recoup its losses.

The desire to purchase a house remains a major driver for Market share. As the population expands and urbanization progresses, so does the demand for dwellings and mortgages. People and corporations may borrow money to acquire real estate more easily with low-interest rates. Low-interest rates promote the mortgage lending market and encourage borrowing. Loan applications are often approved within 24 hours in the mortgage lending sector.


  • Conventional mortgage loans hold the major share in the market based on type.
  • 30-year Mortgage topped the market based on term.
  • Fixed-rate Mortgage owns the highest share in the market based on interest rate.
  • Primary mortgage lender contributes the major share in the market based on provider.
  • North America is the dominating region.

Market Snapshot

market snapshot
Base Year
: 2022
Study Period
: 2021-2031
: 9.6 %
Fastest Growing Market
: Europe
Largest Market
: North America
Market Size
: USD 25 billion by 2031
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Market Dynamics

Global Market Drivers

Increasing Home Ownership Aspirations

In a rapidly urbanizing country and rising economically, there is a growing trend of young professionals and families yearning to buy their own houses. As metropolitan areas grow, so does the demand for residential properties, increasing homeowners looking for mortgage loans to finance their property purchases. According to the National Association of Realtors (NAR) in the United States, the percentage of first-time homebuyers will reach 31% in 2020, up from 33% the previous year. This surge in first-time purchasers reflects a growing desire for homeownership among the younger generation. Residential property demand has increased significantly in nations such as India and China, where urbanization is developing and the middle class is expanding. The ease of getting mortgage loans and favorable government policies encouraging homeownership have pushed this demand even further.

Global Market Restraints

Stringent Regulatory Environment

Mortgage lenders must adhere to high lending criteria, perform extensive borrower evaluations, and keep accurate paperwork in a country with a complicated regulatory framework for the mortgage business. Furthermore, lenders may be required to comply with certain disclosure standards and consumer protection regulations. For lenders, meeting these regulatory duties may be time-consuming and resource-intensive. According to World Bank research, the average time to register property in high-income nations is roughly 20 days, whereas it takes 53 days in low and middle-income countries. These statistics emphasize the administrative complexity that mortgage lenders endure when dealing with property registration and compliance requirements.

Furthermore, to safeguard customers in mortgage transactions, the Consumer Financial Protection Bureau (CFPB) in the United States enforces numerous rules, such as the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). Noncompliance with these requirements can result in severe penalties and harm to lenders' reputations. The European Union's General Data Protection Regulation (GDPR) sets rigorous data privacy and security standards for lenders when processing and keeping borrower information. GDPR compliance may need the investment in comprehensive data protection measures, which increases the operating expenses for mortgage lenders.

Global Market Opportunities

The Growing Influence of Fintech

A traditional mortgage lender collaborates with an online mortgage marketplace fintech platform. Using smart algorithms and data analytics, the fintech platform matches customers with acceptable mortgage alternatives from a network of lenders. Due to this collaboration, the conventional lender obtains access to a broader pool of potential customers who choose digital mortgage options and a simple application procedure. The lender's wide mortgage product offerings and established reputation help the fintech platform, improving its value proposition to borrowers. According to Deloitte research, 80% of mortgage customers in the United States prefer to apply for a mortgage online, demonstrating the great need for digital mortgage solutions.

Fintech platforms that cater to this inclination have the potential to attract a huge number of customers. Fintech mortgage financing platforms frequently tout speedier processing times and less paperwork, resulting in faster approvals and payouts. According to Ellie Mae's research, the average time to finalize a mortgage loan has fallen from 44 days in 2013 to 40 days in 2019, which can be ascribed in part to greater digitalization in the lending process. P2P lending services, a type of fintech lending, have grown in popularity worldwide. Thereby providing an opportunity for market growth.

Segmental Analysis

Segmental Analysis of the Global Mortgage Lender Market

The global mortgage lender market is segmented based on type, term, interest rate, provider, and region.

For better understanding, the type is further segmented into conventional mortgage loans, jumbo loans, government-insured loans, and others.

Conventional mortgage loans hold the major share of the market.

Conventional Mortgage Loans

These are conventional mortgage loans that are not government-insured or guaranteed. Compared to government-insured loans, they often need a higher credit score and a greater down payment. Conventional loans come in a variety of fixed and adjustable-rate alternatives.

Jumbo loans

Jumbo loans surpass the lending restrictions established by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac. These loans are often utilized for high-value homes with higher credit requirements and down payments.

Based on terms, the market is categorized into 30-year mortgages, 20-year mortgages, and 15-year mortgages.

30-year Mortgage topped the market.

30-year mortgages

Mortgage loans with a payback duration of 30 years fall under this group. It is one of the most prevalent homebuying choices. Borrowers can spread their payments over a longer period with a longer repayment term, resulting in cheaper monthly installments than shorter-term loans. 30-year mortgages provide security and predictability, appealing to borrowers seeking lower monthly payments.

20-year mortgages

These mortgage loans have a payback duration of 20 years. Borrowers who choose 20-year mortgages often pay larger monthly installments than those who choose 30-year mortgages, but they benefit from having their loans paid off sooner. This option is appealing to borrowers who want to develop equity quickly while saving money on interest throughout the life of the loan.

By interest rate, it can be further classified into Fixed-rate mortgage loans and adjustable-rate mortgage loans.

Fixed-rate Mortgage owns the highest share in the market.

Fixed-Rate Mortgage

The interest rate on a fixed-rate mortgage remains consistent throughout the loan's life. Borrowers lock in a fixed interest rate at the start of the loan, which remains constant regardless of interest rate market swings. Borrowers benefit from consistency and predictability since their monthly mortgage payments stay steady. Borrowers who enjoy the comfort of knowing precisely how much they need to budget for each month prefer fixed-rate mortgages.

Adjustable-rate mortgages

 Adjustable-rate mortgages have variable interest rates that can change over time. The initial interest rate is usually lower than the current fixed rate. Still, it is subject to periodic modifications depending on changes in an underlying benchmark rate, such as the U.S. Treasury rate or the London Interbank Offered Rate (LIBOR). Borrowers' monthly mortgage payments may alter when the interest rate fluctuates. ARMs appeal to borrowers who expect interest rates to fall in the future or want to sell or refinance before the rate modifications take effect.

By provider, the segment can be further bifurcated into Primary Mortgage Lender and Secondary Mortgage Lender. Primary mortgage lenders include banks, credit unions, NBFCs, and other financial institutions.

The primary mortgage lender contributes the major share.

Primary mortgage lenders

Primary mortgage lenders are the first lenders who make mortgage loans to borrowers. They deal directly with homebuyers or borrowers to determine their eligibility, handle loan applications, and fund mortgage loans that have been authorized. Traditional banks, credit unions, mortgage businesses, and internet lenders are examples of primary lenders. These lenders frequently have a physical presence and a diverse selection of mortgage products to fulfill the demands of different borrowers.

Secondary mortgage lenders

Mortgage loans are not originated directly by secondary mortgage lenders. Instead, they buy mortgage loans on the secondary market from primary lenders. Large financial institutions, government-sponsored enterprises (GSEs), or mortgage-backed securities (MBS) issuers are frequently among these lenders. Secondary lenders play an important role in providing liquidity to the mortgage market by purchasing mortgage loans and packaging them into securities sold to investors.

Regional Analysis

North America Dominates the Global Market

The global mortgage lender market is analyzed in North America, Europe, Asia-Pacific, the Middle East, Africa, and Latin America.

North America holds a sizeable global market share and is expected to boost at a CAGR of 9.5% during the forecast period.  This was ascribed to the federal government's introduction of several programs, or government-sponsored firms, to encourage mortgage banking, building, and house ownership. These programs include the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac). As a result, the area is home to the world's largest mortgage lenders. As a result, the government's expanding measures support the region's market boom.

Additionally, the existence of many players in the United States has resulted in intense rivalry among them, which is projected to continue during the projection period. The growing usage of online mortgage services will also contribute to market growth in the coming years. In Canada, Toronto dominated the overall Canadian market with more than 35% share due to its strong economic performance and growing population within this city as well as its surrounding areas, which has led to it being dubbed the "new Montreal" by numerous individuals across multiple publications such as Financial Post Magazine and Maclean Magazine since 2022; thus making it one of Canada's most significant cities both economically and culturally speaking across North America.

Europe is predicted to rise at a substantial CAGR of 9.2% throughout the forecast period. The market in Europe is a dynamic environment with several options for lenders to meet the housing demands of the region's people. A European mortgage lender goes digital-first, providing an online mortgage application platform with user-friendly interfaces and speedy approval processes. The lender uses data analytics to analyze borrowers' creditworthiness and tailor mortgage solutions to their specific financial profiles.

According to the European Mortgage Federation, outstanding residential mortgage loans in Europe will total more than 7 trillion euros in 2020, demonstrating the market's importance. There are cross-border lending prospects in Europe, where lenders may offer mortgage solutions to borrowers looking for property in different E.U. nations. Streamlining cross-border mortgage procedures and adhering to rules provide potential for pan-European lenders. The lender recruits tech-savvy consumers and achieves a competitive advantage in the European mortgage industry by delivering a smooth digital experience and customized solutions.

The Asia-Pacific population is quickly rising, increasing the demand for homes and homeownership. According to the United Nations, Asia is home to more than half of the world's urban population, fueling the demand for mortgage finance to fund urbanization and housing development. Homeownership dreams are driven by the region's growing middle-class population, which has more discretionary cash. Mortgage lenders have a chance to cater to this rising category of potential borrowers as more people want to purchase a house. The Asia-Pacific area draws international investors, which leads to cross-border real estate investment and prospects for lenders to provide mortgage solutions to overseas purchasers. With an increasing emphasis on sustainability and environmental responsibility, several regional lenders offer green mortgage packages for ecologically friendly homes catering to environmentally conscientious clients.

Latin America and the Middle East and Africa (LAMEA) markets provide prospects driven by population expansion, urbanization, rising middle-class populations, and supporting government policies. However, problems include accommodating distinct cultural and financial preferences and diverse legal contexts. Latin America is rapidly urbanizing, fueling demand for housing and mortgage lending. The World Bank estimates that the region's urban population will reach 80% by 2020, emphasizing the need for housing solutions and mortgage financing.

Mortgage Lender Market Regional Analysis
Regional Growth Insights Download Free Sample

Top Key Players of Mortgage Lender Market

  1. Wells Fargo
  2. Quicken Loans
  3. JPMorgan Chase
  4. Bank of America
  5. Freedom Mortgage
  6. LoanDepot
  7. U.S. Bank
  8. Caliber Home Loans
  9. Flagstar Bank
  10. United Wholesale Mortgage
  11. Guaranteed Rate
  12. Steams Lending
  13. Guild Mortgage
  14. Finance of America Mortgage
  15. PrimeLending
  16. HomeBridge Financial Services
  17. Movement Mortgage
  18. Fairway Independent Mortgage
  19. Pacific Union Financial
  20. Plaza Home Mortgage
  21. New American Funding
  22. Academy Mortgage
  23. The Money Source
  24. CMG Financial
  25. Home Point Financial
  26. Eagle Home Mortgage.

Report Scope

Report Metric Details
CAGR 9.6%
Forecast Period 2023-2031
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered
  1. By Type 
    1. Conventional Mortgage Loans
    2. Jumbo Loans
    3. Government-insured Mortgage Loans
    4. Others
  2. By Terms
    1. 30-year Mortgage
    2. 20-year Mortgage
    3. 15-year Mortgage
    4. Others
  3. By Interest Rate
    1. Fixed-rate Mortgage Loan
    2. Adjustable-rate Mortgage Loan
  4. By Provider
    1. Primary Mortgage Lender 
    2. Primary Mortgage Lender Banks
    3. Credit Unions
    4. Others
    5.  NBFC's
    6. Secondary Mortgage Lender
Geographies Covered
  • North America
  • Europe
  • APAC
  • Middle East and Africa

Recent Developments

  • June 2023- UnidosUS launched the HOME Initiative to create four million Latino homeowners by 2030. The effort will assist Latinos in overcoming hurdles to homeownership; Wells Fargo will serve as the initiative's initial anchor backer.
  • June 2023- JPMorgan Chase made additional commercial and charitable commitments to help address the housing affordability gap in Washington, D.C., and beyond.

Mortgage Lender Market Segmentations

By Type 

  • Conventional Mortgage Loans
  • Jumbo Loans
  • Government-insured Mortgage Loans
  • Others

By Terms

  • 30-year Mortgage
  • 20-year Mortgage
  • 15-year Mortgage
  • Others

By Interest Rate

  • Fixed-rate Mortgage Loan
  • Adjustable-rate Mortgage Loan

By Provider

  • Primary Mortgage Lender 
  • Primary Mortgage Lender Banks
  • Credit Unions
  • Others
  •  NBFC's
  • Secondary Mortgage Lender

By Regions

  • North America
  • Europe
  • APAC
  • Middle East and Africa

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the global mortgage lender market?
The global mortgage lender market size is growing at a CAGR of 9.6% from 2023 to 2031.
North America has the largest share of the market.
Increasing home ownership aspirations is the key driver for the growth of the market.
The growing influence of fintech is one of the upcoming trend in the market.
The key players in the global Market include Wells Fargo, Quicken Loans, JPMorgan Chase, Bank of America, Freedom Mortgage, LoanDepot, U.S. Bank, Caliber Home Loans, Flagstar Bank, United Wholesale Mortgage, Guaranteed Rate, Steams Lending, Guild Mortgage, Finance of America Mortgage, PrimeLending, HomeBridge Financial Services, Movement Mortgage, Fairway Independent Mortgage, Pacific Union Financial, Plaza Home Mortgage, New American Funding, Academy Mortgage, The Money Source, CMG Financial, Home Point Financial, and Eagle Home Mortgage.
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