Latin America Home Mortgage Finance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 3.00 % |
| Market Concentration | Medium |
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*Disclaimer: Major Players sorted in no particular order |
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Latin America Home Mortgage Finance Market Analysis
Latin America Home Mortgage Finance Market has generated a revenue of USD 55 Billion in the current year and is poised to achieve a CAGR of 3% for the forecast period.
Latin America's mortgage credit is expanding quite quickly, despite starting from a poor basis. Even though the evidence at hand suggests that dangers are not imminent, vulnerabilities can appear suddenly. Because of this, nations in the area must take prompt action to fill in information gaps and improve oversight of the housing industry. A secured loan, such as a home mortgage finance market, enables borrowing by offering the lender or bank a tangible asset as security, like a house or commercial property. Up until you pay back the debt, the bank or lender retains the asset. A home mortgage is a loan taken out to purchase a home. Finance for housing is a wise investment. Finance for housing is a wise investment. An instrument with two levels of operation. the mortgage enables families with modest incomes to buy homes that serve as both a shelter and a home and a physical asset that is frequently a primary means of saving and investing. Generally, housing finance produces economic expansion by raising employment, investment, and savings, and building a sound financial foundation.
The COVID-19 epidemic has caused a collapse in worldwide activity and is the biggest economic shock the world has experienced in decades. However, there are indications that global activity is stabilizing and that it has resumed in several significant emerging markets and developing economies. Growth in the housing sector was severely hampered by the Covid-19 pandemic and is unlikely to pick up until the economy starts to mend. Loan stress will increase, especially for loans for affordable homes. The findings demonstrate that the pandemic's detrimental effects on the housing market are mostly shown in the volume and geography of house transactions, with little effect on housing prices. The housing market is negatively impacted by the reported COVID-19 cases in the short term, but this effect gradually fades away.
In numerous nations, including Brazil, Mexico, South Africa, Botswana, Namibia, Kenya, Zambia, and Mauritius, pension asset-backed housing financing has so gained popularity recently. Even though this advancement in housing finance makes it possible to use pension funds as security for mortgages instead of real estate, lenders still have difficulty determining prospective homeowners' creditworthiness. The difficulty arises from the fact that credit information systems are still in their infancy. Thus, there is a growing need for alternate information sources for the creation of credit information systems that can determine a potential borrower's creditworthiness.
Latin America Home Mortgage Finance Market Trends
This section covers the major market trends shaping the Latin America Home Mortgage Finance Market according to our research experts:
Increase in Economic Growth and GDP per capita
In Latin America, the cost of financing is very less as compared to the other countries. Latin American financing has the advantage that the associated expenses are sometimes much cheaper than anticipated. Many applicants anticipate they will pay high monthly costs or high application fees since lending limits are less stringent. The contrary, however, might be true in practice. Most banks benefit from lower operating costs in Latin America because of the region's generally lower cost of living. This translates into reasonable fees that can help you save money month after month when passed on to the bank's clients and borrowers. The lower cost of living and lower cost of financing is driving the market of home finance.
Launch of Plans by Government to Support Home Buyers in Colombia
The building sector in Colombia is driving the nation's post-pandemic economic recovery. Utilizing incentives and subsidies on both the demand side and the supply side, the Colombian government has tried to stimulate this industry, particularly in the residential sector.
On the supply side, incentives have been offered to builders in the form of income tax exemptions on loan proceeds for the construction of social or priority housing (vivienda de interés social - VIS-) and VAT refunds on building supplies for such housing (vivienda de interés prioritario - VIP-). On the supply side, the Colombian government has historically promoted supply by offering direct subsidies; they have since increased in response to the pandemic and have been expanded to include both purchasers of more expensive housing as well as those of social or priority housing.
Due to the widespread use of real estate trust mechanisms in the development and construction of building projects, Colombia offers a fairly flexible market that is proving safe for investors with regard to financing sources for construction in all segments (consisting of residential, retail, offices, and logistics parks). Companies authorised and regulated by the Colombian Financial Supervisory Authority, trustee companies are in charge of managing them.
Latin America Home Mortgage Finance Industry Overview
The Latin America Home Mortgage Finance Market is growing and highly competitive across different countries like Brazil, Columbia, and Peru of Latin America offering a huge number of competitive players dominating the market. The major players which are dominating the home mortgage finance market in Latin America are listed below.
Latin America Home Mortgage Finance Market Leaders
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Caixa Economica Federal (Brazil)
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Banco do Brasil
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Itau(Brazil)
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Bradesco
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Santander
*Disclaimer: Major Players sorted in no particular order
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Latin America Home Mortgage Finance Market News
- In August 2022, Two new mortgage fintech start-ups emerged in Latin America: Toperty launched in Colombia and Saturn5 is about to launch in Mexico. Toperty offers to purchase a customer's new house outright and provides a payment schedule that allows the customer to purchase the house while renting it from the business. Saturn5 wants to give its clients the skills and resources they need to buy a house on their own.
- In August 2022, During a conference call on August 5, Brazilian lender Banco Bradesco SA startled analysts by reporting an increase in default rates in the second quarter of 2022. The average 90-day nonperforming loan ratio for Bradesco, the second-largest private bank in Latin America, increased by 30 basis points. Delinquency in the overall portfolio increased to 3.5% from 2.5% and 3.2%, respectively, in the first quarter.
Latin America Home Mortgage Finance Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Insights on Various Regulatory Trends Shaping Home Finance Market
- 4.5 Insights on the impact of technology and innovation in Operation in Home Finance Market
- 4.6 Insights on Performance of Asset Managers
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4.7 Industry Attractiveness - Porters' Five Forces Analysis
- 4.7.1 Threat of New Entrants
- 4.7.2 Bargaining Power of Buyers
- 4.7.3 Bargaining Power of Suppliers
- 4.7.4 Threat of Substitutes
- 4.7.5 Intensity of Competitive Rivalry
- 4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 Fixed - Rate Mortgage
- 5.1.2 Adjustable- Rate Mortgage
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5.2 By Tenure
- 5.2.1 Upto 5 years
- 5.2.2 6-10 years
- 5.2.3 11-24 years
- 5.2.4 25-30 years
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5.3 Geography
- 5.3.1 Brazil
- 5.3.2 Chile
- 5.3.3 Peru
- 5.3.4 Colombia
- 5.3.5 Rest of Latin America
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration & Overview
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6.2 Company Profiles
- 6.2.1 Caixa Economica Federal
- 6.2.2 Banco do Brasil
- 6.2.3 Itau
- 6.2.4 Bradesco
- 6.2.5 Santander
- 6.2.6 BBVA Bancome
- 6.2.7 CITI Banamex
- 6.2.8 Scotia Bank
- 6.2.9 Banco de Chile
- 6.2.10 Davivienda*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Latin America Home Mortgage Finance Industry Segmentation
When a seller offers a consumer a loan to acquire a product from them, they are referring to house financing. This allows the seller to avoid having to wait while the buyer's loan is processed and allows the buyer to spread out the payment over a number of months rather than all at once.
The Latin America Home Mortgage Finance Market is segmented by type (Fixed-rate Mortgage, Adjustable-rate Mortgage) and by Tenure (Up to 5 Years, 6 - 10 Years, 11 - 24 Years, and 25 - 30 Years) and by Geography (Brazil, Chile, Peru, Colombia, and the Rest of Latin America). The report offers market size and forecasts for Latin America Home Mortgage Finance Market in value (USD Million) for all the above segments.
| By Type | Fixed - Rate Mortgage |
| Adjustable- Rate Mortgage | |
| By Tenure | Upto 5 years |
| 6-10 years | |
| 11-24 years | |
| 25-30 years | |
| Geography | Brazil |
| Chile | |
| Peru | |
| Colombia | |
| Rest of Latin America |
Latin America Home Mortgage Finance Market Research FAQs
What is the current Latin America Home Mortgage Finance Market size?
The Latin America Home Mortgage Finance Market is projected to register a CAGR of 3% during the forecast period (2024-2029)
Who are the key players in Latin America Home Mortgage Finance Market?
Caixa Economica Federal (Brazil), Banco do Brasil, Itau(Brazil), Bradesco and Santander are the major companies operating in the Latin America Home Mortgage Finance Market.
What years does this Latin America Home Mortgage Finance Market cover?
The report covers the Latin America Home Mortgage Finance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Latin America Home Mortgage Finance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Latin America Home Mortgage Finance Industry Report
Statistics for the 2024 Latin America Home Mortgage Finance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Home Mortgage Finance analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
