Europe Home Mortgage Finance Market Size (2024 - 2029)

Europe Home Mortgage Finance Market Analysis

Europe Home Mortgage Finance Market is poised to grow at a CAGR of 6% during forecast period. 

Europe's home mortgage finance industry witnessed a significant decline owing to the outbreak of the COVID-19 pandemic. This was due to the lockdowns imposed by the government that led to the shutdown of various businesses, which in turn led to a huge job loss and unemployment in Europe. Being quarantined at home, people could not complete their day-to-day needs, and their income was stopped. Tenants had to move to their hometowns because having no jobs and paying rent was getting more difficult each day for them, making it difficult for the property owners to repay their loans. Additionally, because of unemployment, people needed more time to be ready to opt for home loans, home mortgages, or any other related service, which resulted in a decline in the demand for this market.

Of the various forms of investment, residential or real estate investment is still a very popular investment option not only in Europe but all across the globe. Housing loans account for approximately 77% of total adjusted loans. The growth rate of lending to households gradually increased over the years to reach a high of 4.2% last year. Meanwhile, the Euro area bank interest rate on loans for house purchases moved steadily downwards from 3.9% in August 2011 to 1.3% in August 2021. An increase in the affordability of houses and the adoption of housing finance services among individuals and businesses for various purposes, such as purchasing new lands, buying new houses, and various residential construction projects, is expected to drive the growth of this market during the forecast period.

Europe Home Mortgage Finance Industry Segmentation

Housing finance is a type of lending service that offers money to purchase new properties, such as a home or land, to the end users. This helps individuals and businesses to purchase these housing properties without giving the entire buying price at once. The person borrowing this money repays the loan amount and interest up to the specified number of years.

The Europe home mortgage finance market is segmented by application (home purchase, refinance, home improvement, and others), by providers (banks, housing finance companies, and real estate agents), and by interest rate (fixed rate mortgage loan and adjustable rate mortgage loan). The report offers market size and forecasts for Europe Home Mortgage Finance Market in value (USD Million) for all the above segments.