Household Lending Market Report 2026

The household lending market size has grown rapidly in recent years. It will grow from $5.54 trillion in 2025 to $6.1 trillion in 2026 at a compound annual growth rate (CAGR) of 10.2%. The growth in the historic period can be attributed to increasing home purchase activity, expansion of banking sector mortgage offerings, growth in fixed-rate loan adoption, rising urban housing demand, availability of credit through traditional lenders.

The household lending market size is expected to see strong growth in the next few years. It will grow to $8.91 trillion in 2030 at a compound annual growth rate (CAGR) of 9.9%. The growth in the forecast period can be attributed to increasing adoption of ai-based loan underwriting, rising demand for online lending platforms, expansion of adjustable-rate mortgage products, growing focus on financial inclusion, increasing integration of digital banking ecosystems. Major trends in the forecast period include increasing adoption of digital mortgage platforms, rising demand for flexible loan products, growing use of automated credit assessment tools, expansion of home equity lending options, enhanced focus on customer-centric loan management.

The significant surge in housing costs is anticipated to drive the expansion of the household lending market in the near future. Housing costs include rent and mortgage expenses (principal repayment and mortgage interest), or a broader measure that considers obligatory services and charges, routine maintenance and repairs, taxes, and utility bills. Rising housing costs reduce an individual's ability to purchase a home with full cash payment and encourage them to seek a loan. As a result, the growing housing costs are fueling the household lending market. For example, in September 2025, according to the U.S. Census Bureau, a US-based government agency, median monthly homeowner costs increased 3.8% from 2023 to 2024, exceeding the 3% rise from 2022 ($1,902) to 2023. This increase was largely driven by higher mortgage payments and insurance costs. Consequently, the substantial surge in housing costs is propelling the household lending market.

Major companies in the household lending market are concentrating on developing innovative solutions, such as end-to-end digital home loans, to simplify the borrowing process. An end-to-end digital home loan refers to a completely online procedure for applying, approving, and managing a home loan without the necessity for physical paperwork or in-person meetings. For example, in November 2023, Australia and New Zealand Banking Group Limited, a financial services company based in Australia, launched a new end-to-end digital home loan via its ANZ Plus mobile app, specifically targeting eligible owner-occupiers in metropolitan New South Wales and Victoria for refinancing. This innovative service facilitates rapid approvals, often within minutes, and offers upfront property valuations. With a competitive variable interest rate of 6.14%, the loan process is streamlined and user-friendly, allowing customers to easily track their applications.

In March 2023, Barclays PLC, a UK-based multinational bank, acquired Kensington Mortgage Company Limited to strengthen its mortgage product portfolio. The acquisition integrated a specialized mortgage lender with a strong reputation in the UK market, aligning with Barclays' strategic goal of delivering next-generation, digital consumer financial services. Kensington Mortgage Company Limited specializes in providing mortgages for first-time buyers, self-employed individuals, contractors, and others.

Major companies operating in the household lending market are Bank of America Corporation, JPMorgan Chase & Co., Pentagon Federal Credit Union, Discover Financial Services Inc., LoanDepot.com LLC, Spring EQ LLC, Australia and New Zealand Banking Group Limited, Barclays plc, Citizens Commerce Bancshares Inc., Commonwealth Bank of Australia, Flagstar Bancorp Inc., HSBC Holdings plc, Navy Federal Credit Union, Roostify Inc., Royal Bank of Canada, Alltru Credit Union, American Express Company, Earnest Inc., Figure Technologies Inc., Even Financial Inc., First Tech Federal Credit Union, Happy Money Inc., Kikoff Inc., Klarna Bank AB, LendingClub Corporation, LendingUSA LLC, Mission Lane LLC, The Goldman Sachs Group Inc., Mariner Finance LLC, MoneyKey Inc., MoneyLion Inc., M&T Bank Corporation, Enova International Inc., OneMain Financial Holdings Inc., Oportun Inc., OppFi Inc., Peerform Inc., PNC Financial Services Group Inc., Prosper Marketplace Inc.

North America was the largest region in the household lending market in 2025. The regions covered in the household 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 household lending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The household lending market includes revenues earned by entities by providing conventional loans, secured and unsecured loans, and open-end and closed-end loans to borrowers for household lending. 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.

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