Analysis of e-Mortgage market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The global e-Mortgage market is estimated at US$ 8.7 billion in 2022 and is predicted to surpass a valuation of US$ 46.2 billion by the end of 2032, expanding at an astronomical CAGR of around 18.2% between 2022 and 2032.
Mortgages origination processes are often required to be dealt with several documents that are correctly filled and duly signed by several stakeholders. Moreover, real estate contracts based on paper require people to visit in person, handle notaries, and sign records.
However, the emergence of e-Mortgage has eliminated all these barriers for both parties, providing a smooth gateway for managing all operations related to mortgages.
e-Mortgage Market Size (2021A)
US$ 7.4 Billion
Estimated Year Value (2022E)
US$ 8.7 Billion
Projected Year Value (2032F)
US$ 46.2 Billion
Global Market Growth Rate (2022-2032)
North America Market Share (2021)
Europe Market Growth Rate (2022-2032)
Top 5 Companies’ Market Share (2021)
Key Companies Profiled
The rise of digital technology had opened new avenues for mortgage applications, wherein, borrowers are leveraging the ease of origination & closing mortgages.
The global pandemic permanently changed the perception about how consumers used to buy or refinance a property, while complete integration is done from the home through online tools.
As per the latest analysis by Fact.MR, the e-Mortgage market share was around 23% in the global digital lending market at the end of 2021.
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The e-Mortgage market registered growth at around 15.6% CAGR during the historical period (2017-2021). Due to the COVID-19 pandemic, sales witnessed a significant rise of around 31%, resulting in a hike in terms of revenue generation as there was a significant transformation towards digitalization.
Currently, in the virtual world, every domain has taken a jump on the back of technological advancements. The pandemic compelled lenders and borrowers to rediscover the optimal ways to operate and conduct their business.
For a few years, Blockchain technology has been lauded as one of the potential ways forward. On the back of Blockchain technology, mortgages will increasingly move into the digital world, with smart contracts and decentralized ledgers enabling mortgage transfers in a faster, more secure, and cost-effective manner.
Large financial institutions are increasingly collaborating with data aggregators to make client financial information more accessible in a safe manner that protects borrowers’ credentials. Owing to this, the global market for e-mortgage technology is expected to create an absolute $ opportunity of US$ 38.8 billion, expanding at a CAGR of 18.2% through 2032.
“Increasing Digitalization in Banking & Lending”
Demand from the consumer end for e-Mortgages has witnessed exponential growth over the past few years. In 2018, nearly 17,000 electronic promissory notes were registered. After just one year, the number jumped to around 95,000 in 2019, witnessing an increase of around 500%. This continued with a single-month tally reaching around 19,240 eNotes in February 2020.
The prime reason is the security, speed, and cost-effective attributes of e-Mortgages as compared to traditional paper-based mortgages. The overall process and loan documents, including eNotes, are created, signed, transmitted, and stored electronically, limiting the risk of misplacement or theft as well as enabling automated data verification covered under a single platform.
This complete end-to-end digitalization has led to the double-digit growth of e-Mortgage, and will continue to drive the adoption of personal finance mobile apps over the coming years as well.
“High Consumer Preference for e-Mortgage Technology Adoption”
Lenders are completely relying on online portals and digital tools, wherein, 9 in 10 mortgages offer conventional as well as digital options. Out of the lenders, such as banks, fintech, and NBFCs, nearly 2/3 state that more than 50% of mortgage applications are processed online, while the remaining 1/3 said more than 80% of applicants choose the digital interference for their mortgage process.
Even though e-Mortgage is taking a jump in terms of adoption, large lending enterprises that have more than 200 employees indicated that less than 50% of mortgage applications were submitted online. On the borrowers’ side, around 60% used online applications for mortgage borrowing in 2020, moving linearly from below 50% in 2018. A similar number of borrowers used online platforms for electronically signing and notarizing documents.
As lenders and borrowers are collectively shifting their mode of mortgage towards digital technology, e-Mortgage is set to boom the lending scenario across the world over the forecast period.
“Data & Analytics to Aid e-Mortgage Technology Growth”
Homebuyers can rapidly compare interest rates, home loan terms, and many customizable options that match their unique preferences using Internet tools. In the online mortgage process, lenders compete for consumers, and therefore, collecting quotations from several lenders implies that buyers are more likely to get a better interest rate, more favourable loan terms, and better long-term savings.
Users can also take their time to analyse material, hunt for more resources, and make an informed decision based on their comfort level, rather than feeling overwhelmed in a high-pressure, high-stakes conversation. Borrowers can input financial information without exposing their faces or meeting with anyone, and the software will process it.
Considering the above-mentioned factors, overall rise in the business of mortgages is likely to accelerate the adoption of e-mortgage solutions across the world.
“Trust Element Less in Virtual World”
In mortgage lending, trust is a vital element, while borrowers trust the lenders with their personal information, which is documents, during the overall mortgage process. Moreover, lenders try to be in the position to deliver low-risk and precise origination of the mortgage.
“Transition to Digital Processes a Tedious Task”
Though traditional processes can be outdated, slow, and are also potentially high-risk, they are quite difficult to change overnight.
Some lenders are already in the process of overcoming the adoption barrier; however, a disjoint adoption strategy or lack of management change can act as a potential barrier to successful adoption. At different levels of an organization, the adoption process can be slow owing to weak training and non-effective synergy between the departments of an organization.
Owing to the aforementioned factors, the market for e-Mortgages will face several barriers in terms of adoption.
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The validation of electronic documentation has received legal recognition in most countries around the globe. The Uniform Electronic Transactions Act (UETA) was passed in the U.S. in early 2000, along with the global and National Commerce Act (ESIGN Act).
These laws have provided legal validity to electronic mortgage documentation. As a result, the U.S. national mortgage depository (MERS) introduced the concept of electronic mortgages.
The U.S. mortgage industry stands at around US$ 9 trillion in 2020; however, the penetration of digital mortgages is only 5%, which is expected to see high growth potential over the forecast period.
The U.S. e-Mortgage market is expected to expand at 14.3% CAGR and reach a market valuation of US$ 10.5 billion by the end of 2032.
At the end of 2021 Q4, the total outstanding value of all residential mortgage loans was US$ 1,755 billion, up 4.7% from the previous quarter. In the fourth quarter of 2021, gross mortgage advances totaled US$ 76.4 billion, down 8.4% from the fourth quarter of 2020 and the lowest amount since the third quarter of 2020.
As the market size of the U.K. mortgage industry is massive and is on the path of continuous growth, the adoption outlook of digital mortgages in the country is promising. The U.K. market is expected to create an absolute dollar opportunity of US$ 1.6 billion and grow 5.1X over the decade.
Nonbanks and secondary lenders have witnessed accelerated growth owing to the early adoption of technology. Processes for application, underwriting, and closing, along with data analytics under one interface are transforming the space.
Fintechs have launched separate solutions for digital services through strategic partnerships with software and service providers. They are enhancing their mortgage offerings by leveraging technology, taking the early mover advantage to get a competitive edge over other lenders.
Over the past half-decade, fintech has captured the mortgage industry with 35.5% market share at the end of 2021, and the segment is expected to create a market valuation of around US$ 20.5 billion by 2032-end.
Closing is one of the vital processes under mortgage and lending; proper closure with complete transparency is expected by every consumer. Lenders are often swamped with work while closing a mortgage due to the sheer volume of paperwork.
However, online notarization is estimated to save US$ 1 billion annually across the mortgage industry. Moreover, if every company, real estate agent, and lender goes digital instead of shipping paper documents, this is expected to top US$ 100 Mn in annual savings.
Digital online notarization is when using audio-visual technology, the signer signs the documents, which allows e-Closing and digital mortgage operations to become seamless. Leveraging online notarization, the closing solutions segment is expected to create an absolute dollar opportunity of US$ 7.2 billion during the forecast period.
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Fact.MR evaluates that the e-Mortgage market is concentrated and tier-1 players accounted for around one-third market share at the end of 2021. They are relying on operational efficiency, reliable solutions, and technological advancements; however, tier-2 players can compete with competitive price points and tailored offerings.
Leading players operating in the e-Mortgage market are AmoCRM, BNTouch, Calyx PointCentral, Cimmaron, Encompass, Floify LLC, HubSpot, ICE Mortgage Technology, Inc, Jungo, Keap, Maxwell Financial Labs, Inc., MLO Shift, Pipedrive, Podium, RealINSIGHT, Salesforce, Simple Nexus, Surefire, TeamSupport, Total Expert, Turnkey Lender, Unify, Velocify LoanEngage, Whiteboard, and Zendesk Sell
Market players are on the continuous path to delivering next-generation services by offering additional and quicker APIs and high-end customization competencies with tools and e-forms. The capability to initiate, manage, and execute loans with exceptions, and enhanced customer experience, has been the forefront strategy of market leaders.
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The global e-Mortgage market is currently valued at US$ 8.7 billion and is anticipated to surpass US$ 46.2 billion by 2032-end.
During the 2017-2021 period, e-Mortgage sales increased at 15.6% CAGR.
Key providers of e-Mortgages are Cimmaron, Encompass, Floify LLC, ICE Mortgage Technology, Inc, Keap, Unify, and Whiteboard.
North America leads the market accounting for around 35% market share in 2022.
Origination solutions accounted for around 62% market share at the end of 2021.
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