Home Loan Market to Exceed USD 9 Trillion by 2031 Led by Purchase Mortgages and Fixed-Rate Lending: Reports Mordor Intelligence

HYDERABAD, India, Jan. 29, 2026 /PRNewswire/ -- According to Mordor Intelligence, home loan market size is projected to expand from USD 6.29 trillion in 2026 to USD 9.32 trillion by 2031, growing at a CAGR of 8.16% during the forecast period. Market growth is driven by steady population expansion, sustained urbanization, and the rapid adoption of digital mortgage platforms, which are boosting loan origination activity even amid elevated interest rates. Lenders are increasingly leveraging technology to shorten approval timelines from weeks to just days, reduce operational costs, and improve credit accessibility in underserved regions. Additionally, government-led affordable housing initiatives and incentives for energy-efficient homes are broadening the borrower base, while renewed momentum in private-label securitization and rising cross-border workforce mobility are creating new revenue opportunities for specialized lenders despite tightening regulatory environments.

Home Loan Market Share by Region

Asia-Pacific is emerging as the most dynamic region in the global lending landscape, supported by strong housing activity, policy-driven stimulus, and long-term structural demand. Expanding urban populations, favorable mortgage reforms, and renewed momentum in residential development are strengthening borrower confidence across key economies. While emerging markets continue to drive acceleration through housing expansion and affordability measures, established markets are sustaining demand through migration-led growth and urban renewal initiatives. Together, these trends are reinforcing long-term confidence in the home loan market size across the region.

North America remains a cornerstone of the global home loan landscape, supported by a well-established secondary mortgage ecosystem and continued international investor interest. However, higher borrowing costs and constrained housing supply are tempering transaction volumes, prompting a noticeable shift in buyer behavior toward non-financed purchases. In Canada, the upcoming wave of mortgage renewals is placing added pressure on household balance sheets as earlier low-rate agreements reset, underscoring the region's sensitivity to interest rate cycles and refinancing risk.

Home Loan Market Growth Drivers

Momentum Builds Around Sustainable Housing Finance

Across major developed markets, lenders are increasingly aligning mortgage offerings with sustainability goals by rewarding energy-efficient homes through preferential pricing and incentive-based structures. Supportive policy frameworks and tax benefits are making green upgrades more financially appealing, encouraging borrowers to bundle renovation and financing decisions. As sustainability-linked assets gain credibility among investors, lenders are tapping ESG-focused capital pools to stay competitive while advancing environmental commitments, further reinforcing evolving home loan market trends.

Digital Mortgage Models Gain Strong Traction

Mortgage providers are rapidly shifting toward digital-first operating models that streamline the borrowing journey from application to closing. By replacing manual processes with automated workflows, lenders are cutting turnaround times, lowering operating costs, and extending reach into markets where physical branches are impractical. Integrated digital ecosystems also improve coordination across industry participants, while real-time application visibility enhances customer confidence, helping lenders improve conversion, reduce drop-offs, and create more predictable revenue outcomes.

Key Segments Highlighted in the Home Loan Market Analysis Report

By Loan Purpose

• Purchase (New / Existing)
• Home Improvement / Renovation
• Others (Construction, Refinance)

By Provider

• Banks
• Housing Finance Companies
• Others

By Interest Rates

• Fixed Interest Rates
• Floating Interest Rates

By Loan Tenure

• Less than or equal to 10 Years
• 11–20 Years
• Longer than 20 Years

By Region

• North America
  
  • United States
  • Canada
  • Mexico

• South America
  • Brazil
  • Argentina
  • Chile
  • Colombia
  • Rest of South America

• Europe
  • United Kingdom
  • Germany
  • France
  • Spain
  • Italy
  • Benelux (Belgium, Netherlands, Luxembourg)
  • Nordics (Sweden, Norway, Denmark, Finland, Iceland)
  • Rest of Europe

• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • South-East Asia (Singapore, Indonesia, Malaysia, Thailand, Vietnam, Philippines)
  • Rest of Asia-Pacific

• Middle East and Africa
  • United Arab Emirates
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of Middle East and Africa

Overview – Home Loan Industry

Home Loan Companies

• Rocket Mortgage (Quicken Loans)
• Wells Fargo & Co.
• Bank of America Corporation
• JPMorgan Chase & Co.
• Citigroup Inc.
• HSBC Group
• Goldman Sachs (Marcus)
• Charles Schwab & Co.
• Morgan Stanley
• U.S. Bank
• Barclays plc
• BNP Paribas Personal Finance
• Santander Consumer Finance
• ANZ Bank
• Commonwealth Bank of Australia
• China Construction Bank
• ICICI Bank Ltd.
• LIC Housing Finance Ltd.
• Dewan Housing Finance Corp. Ltd.
• Nationwide Building Society

Get in-depth industry insights on the home loan market report:  https://www.mordorintelligence.com/industry-reports/home-loan-market?utm_source=prnewswire

Explore related reports from Mordor Intelligence

Micro Finance Market: Microfinance market report is segmented by institution type, including banks and micro-finance institutions along with other financial entities; by end users, covering both businesses and retail consumers; by offerings such as micro-loans, micro-insurance, and other related financial products; and by distribution channel, spanning online and offline modes. Geographically, the market analysis covers North America, South America, Europe, Asia-Pacific, and the Middle East and Africa, with detailed country-level insights across major economies such as the United States, Canada, Mexico, Brazil, Argentina, the United Kingdom, Germany, France, China, India, Japan, Australia, and several emerging markets within Southeast Asia, Africa, and the Middle East.
https://www.mordorintelligence.com/industry-reports/micro-finance-market?utm_source=prnewswire

Leveraged Loan Market Share: Leveraged loan market is segmented by type of investor, including institutional investors, direct lenders, banks, and hedge funds; and by sector, encompassing technology and media, healthcare, energy and utilities, retail and consumer goods, as well as industrial and manufacturing industries. The market is also analyzed by geography, providing regional insights into key lending hubs and investment destinations across major global markets.

Open Banking Market Trends: Open banking market is Segmented by service type, including account information services such as data aggregation and enrichment, funds confirmation, and other related offerings; by end users, covering retail banking customers, small and medium-sized enterprises, corporate and commercial enterprises, third-party fintech developers, and other participants; by distribution channel, spanning bank channels, app-based platforms, and API marketplaces; by deployment model, comprising cloud, on-premise, and hybrid environments; and by geography, with regional analysis across key global markets.

About Mordor Intelligence:    
 
Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.    
    
With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive market analysis and research reports as well as syndicated and custom research offerings that cover a wide spectrum of industries, including aerospace & defence, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics. 

For media inquiries or further information, please contact:
media@mordorintelligence.com
https://www.mordorintelligence.com/contact-us

Logo: https://mma.prnewswire.com/media/2746908/Mordor_Intelligence_Logo.jpg