Demographic shifts mean brokers have an opportunity to help a growing cohort of clients navigate their next, and often most significant, move
Most first home buyers rely on a broker to help them navigate the unfamiliar process of buying a property. But that purchase is usually just a stepping stone – and the next one can involve far more time pressure and complexity.
According to our Outlook Australia research that we developed alongside Bernard Salt*, Australia’s 7 million Millennials will enter their 40s over the next decade. That’s the decade many start to raise families, move into school zones, and reassess whether their current home still meets their needs. For some, that may mean upsizing, building, or renovating, while others may choose to stay put and improve what they already own.
This generation enjoys more flexibility over both income and location. They don’t necessarily need to be close to work, but they may need space for a home office. Parents are also increasingly likely to be self-employed – or take on contract work – to manage the childcare juggle. Millennials may also be early beneficiaries of Australia’s largest intergenerational transfer of wealth, with the Bank of Mum and Dad motivated to keep their grandkids close.
All of this is creating new lending needs and opportunities for brokers.
Lending needs your Millennial clients have right now
Affordability remains front of mind, but life doesn’t always wait for the perfect market conditions. Families grow, needs change, and opportunities arise.
Millennial borrowers are often juggling growing equity, family commitments, and increasingly complex financial arrangements. They might have dual incomes, but it’s less likely to be straightforward PAYG. For many, the family home purchase will involve two transactions – selling what they have while buying what they need.
The stakes are high, and the opportunity for brokers lies in helping clients navigate these decisions with the right structure and strategy.
Bridging the timing gap
Finding the right home isn’t always easy. When the right property comes along, your clients may need to move before they’re ready to sell.
Bridging is an undersold product, and it’s often misunderstood. It removes the timing pressure to sell, giving your clients time to increase the value of their existing property. The interest is capitalised into the loan, along with all other costs – the new property purchase, the existing mortgage, stamp duty, and legal fees. No repayments are required during the bridging period.
ORDE assesses serviceability on the end debt, not peak debt. Our Bridging Calculator can help you work out what this means for your client. If they sell quickly, there are no penalties – and once the sale occurs, the debt immediately reduces and converts to a standard home loan. No rework, no additional documents.
This works for downsizers too. When my father-in-law moved closer to us, a bridging loan gave him time to improve his home before selling.
Building the forever home
When my wife and I bought our family home, we were more attracted by the land than the house itself. We’ve since knocked down and rebuilt our forever home. For some families, rising property prices can make a knockdown-rebuild, renovation, or build project an alternative to competing for an established home in their preferred suburb.
ORDE’s construction lending supports building or renovating a family home or purchasing and building on vacant land. We can work with builder-owners and self-employed borrowers and provide guidance on valuations and progress drawdowns.
Structuring the deal when it’s not straightforward
Next home buyers may have built some equity, but gifted deposits are increasingly part of the picture.
ORDE’s flexible approach to assessment means we can also accept gifted deposits, provided the funds are unconditional and don’t require repayment. Brokers need to provide documentation showing the source and intent of the gift and confirm the funds are available on settlement day.
Fast, digital, and still human
Today’s borrowers expect speed and convenience, but not at the expense of support. They want to sign online, track progress easily, and know someone is available when they need help.
That’s why digital capability matters. We’ve had deals settle the same day thanks to online documentation and a proactive settlements team. Even if a borrower is interstate or on holidays, the process can keep moving.
From broker to advocate
The transactional approach is long gone. Successful brokers are asking the right questions, thinking strategically, and building a trusted relationship through every life stage.
Are your clients planning to start or grow a business? Expand their family? Buy an investment property? Put a tenant in their first home? These decisions affect income and expenditure and how you time or structure a loan.
*ORDE commissioned Bernard Salt and The Demographics Group to analyse demographic and economic trends shaping the next decade for lenders and brokers.
