New research by Roy Morgan shows that in the 12 months to March 2018 nearly half (48.6%) of the existing home borrowers who used a mortgage broker over the last five years to obtain their current loan were Millennials, also known as Generation Y that researchers and popular media use the early 1980s as starting birth years and the mid-1990s to early 2000s as ending birth years, with 1981 to 1996 a widely accepted definition. This was well above the share of any other generation. Over 50,000 consumers per annum, including over 5,000 home loan customers with a loan held for five years or under answered to this source survey. The survey was held in Australia.
“The dominance of Millennials (48.6% broker share), combined with Generation X (38.8%), that together they account for 87.4% of current home borrowers using mortgage brokers where their loan had been held for five years or less. Baby Boomers account for only 9.0% of this market, followed by Generation Z (3.1%) and Pre-Boomers (0.5%). (roymorgan.com)
While Millennials were born between 1980 and 1994 and are currently between 24-39 years’ old, Generation X was born between 1965 – 1979 and are currently between 40-54 years’ old, Generation Z was born between 1995 and 2015 and are currently 4-24 years’ old and Baby Boomers were born between 1946 and 1964 and are currently 55-73 years’ old.
“Almost half (42.5%) of Millennials with a current home loan of five years or less used a mortgage broker. In second place was Generation X (37.0%), followed by Baby Boomers (27.6%) and Pre-Boomers (21.2%). (roymorgan.com)
“Norman Morris, Industry Communications Director, Roy Morgan says that the dominance of Millennials in the use of mortgage brokers to obtain their home loan is most likely due to a number of factors. These include the fact that this generation has grown up at a time when mortgage brokers were always there and so that they are seen as a very familiar way of acquiring a home loan. This is in contrast to the older generations that they may be less likely to use them and so be more used to going directly to a bank. Another potential reason is that with rapidly rising house prices, combined with the fact that more Millennials are likely to be first home buyers, then mortgage brokers may be seen as possibly being a way of borrowing more as they have the potential to get a better interest rate.” (roymorgan.com)
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References:
http://www.roymorgan.com/findings/7594-millennials-dominate-mortgage-broker-market-201805202301