Home Equity Lending Market Report 2026

The home equity lending market size has grown steadily in recent years. It will grow from $30.58 billion in 2025 to $31.96 billion in 2026 at a compound annual growth rate (CAGR) of 4.5%. The growth in the historic period can be attributed to increasing homeownership rates, expansion of mortgage and refinancing activities, rising consumer demand for flexible credit options, growth of traditional banking services, availability of property-backed lending products.

The home equity lending market size is expected to see steady growth in the next few years. It will grow to $37.64 billion in 2030 at a compound annual growth rate (CAGR) of 4.2%. The growth in the forecast period can be attributed to increasing adoption of fully digital lending workflows, rising demand for fast loan approvals, expansion of fintech participation in home lending, growing focus on data-driven credit decisioning, increasing integration of ai in loan servicing operations. Major trends in the forecast period include increasing adoption of digital loan origination platforms, rising use of ai-based credit assessment tools, expansion of online home equity lending channels, growing integration of automated risk scoring systems, enhanced focus on customer-centric loan products.

The growing number of residential properties is expected to drive the expansion of the home equity lending market. Residential properties include single-family homes, apartments, and condominiums. This growth is fueled by factors such as infrastructure development, changes in zoning laws, proximity to workplaces, a shift toward homeownership, and general inflation. Home equity lending enables homeowners to access the increased value of their properties, providing funds for renovations, debt consolidation, or other financial needs, which can enhance property value and overall marketability. For example, in March 2024, the Australian Bureau of Statistics reported 30,992 private new dwellings, marking a 3.7% increase from December 2023 and a 14.6% rise compared to March 2023. Additionally, private and other residential completions reached 14,844 dwellings, a 5.6% increase from December 2023. Thus, the rise in residential properties is contributing to the growth of the home equity lending market.

Key market players are introducing innovative solutions such as nonrecourse home equity loans, which offer flexible repayment structures and digital origination platforms. Nonrecourse loans relieve borrowers from personal liability beyond the value of the property, providing a safer alternative to traditional home equity loans or HELOCs. In September 2025, HighTechLending Inc., a U.S.-based home equity solutions provider, launched EquitySelect, a nonrecourse home equity loan for retirees and older homeowners. EquitySelect features flexible monthly payments starting at 1% of the loan balance, lifetime payment caps to protect borrowers, and access to home equity without personal liability beyond the property’s value.

In September 2023, Cerberus Capital Management, a U.S.-based investment firm, acquired Spring EQ to expand its home equity financing portfolio. Spring EQ specializes in providing home equity and purchase loans, and the acquisition strengthens Cerberus Capital’s position in the home equity lending sector.

Major companies operating in the home equity lending market are Bank Of America Corporation, HSBC Holdings PLC, Toronto-Dominion Bank, BMO Bank N.A., U.S. Bancorp, PNC Financial Services Inc., Discover Financial Services Inc., Citizens Financial Group Inc., M&T Bank Corporation, Regions Financial Corporation, Key Corp Limited, Rocket Mortgage LLC, Navy Federal Credit Union, HomeBridge Financial Services Inc., New American Funding Inc., Zillow Group, LoanDepot LLC, PenFed Credit Union, Simmons First National Corporation, Network Capital Funding Corporation, Spring EQ LLC.

North America was the largest region in the home equity lending market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the home equity lending market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the home equity lending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The home equity lending market includes revenues earned by entities by traditional home equity loans, home equity line of credit, and, cash-out refinance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.