Generation Y presents a lucrative target market for mortgage lenders, the latest Genworth Financial Spotlight Series has revealed.
According to the mortgage insurer, Generation Y’s desire for financial success means they are starting to appreciate property ownership just like their predecessors.
“While the majority of Gen Y is without doubt focused on socialising, fast moving consumer goods (FMCG) and leisure, as the demographic matures we expect them to become increasingly focused on property ownership and investment,” country executive and director of Genworth Peter Hall said.
Generation Y already accounts for 20 per cent of Genworth’s current portfolio. Considering that Gen Ys have only recently reached the age for taking out mortgages, this represents a significant portion of the insurer’s portfolio and indicates much potential for future growth, according to Mr Hall.
The challenges for mortgage lenders will be reaching this generation of media-savvy borrowers, Mr Hall said.
“The key for the mortgage industry right now is to educate and relate to the Gen Y demographic.”
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