The Home Equity Lending Market

Goals

To gain an in-depth understanding of the competitive landscape of the home equity lending market in Quebec covering its top players, vulnerable or failing businesses, and the likelihood of success for a new entrant.

Early Findings

We were not able to identify any major players particular to the Quebec region. This is mostly due to the fact that most home equity lenders are national players and offer home equity lines of credit (HELOC) loans across all regions. Below are some of our findings:
  • The home equity lending market in Canada slightly decreased year-on-year to $173 billion. The market is mostly operated by Canada's top six banks, which have $142.3 billion worth of non-amortizing HELOC loans outstanding.
  • According to a report by BNN Bloomberg, Royal Bank is the highest lender of non-amortizing home equity-based loans in the country. The bank has $39.6 billion worth of non-amortizing home equity lines of credit (HELOC) loans outstanding.

Summary Of Our Early Findings Relevant To The Goals

  • In our initial hour of research, we were able to identify the top six lenders of home equity lines of credit (HELOC) loans across all regions.
  • Due to time constraints, we were not able to do Porter's Five Forces analysis of the market, identify the likelihood of success for a new entrant, and identify any failing or vulnerable business.

Proposed next steps:

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We are suggesting further research that will build upon the initial findings. To that end, we'd recommend additional research that will provide insights into the competitive strength of the major players, the aggregate supplier and buyer dynamics, prevailing threats to existing companies, and the threat of new entry (or the likelihood of its success).
We will also propose research to identify any vulnerable or failing lenders of home equity lines of credit (HELOC) loans across all regions.