Mortgage market will provide a strong growth opportunity to banks and housing finance companies due to the supply-demand mismatch and low penetration. As per ratings agency Crisil, the home loan market is expected to generate a 21% CAGR over FY14-19. Despite rising competition from banks, housing finance companies have gained market share due to their strong origination capabilities. A UBS report says housing finance companies will be the biggest beneficiaries among non-banking financial companies as cost of funds will fall faster than lending rates.
