Recent data from ING has revealed that almost half of millennial home buyers believe COVID-19 has made property ownership more achievable, with one third aiming to secure a purchase within the next 24 months.
According to ING’s head of third-party distribution and direct mortgages Glenn Gibson, these findings create some clear opportunities for brokers as young Australians reignite their homeownership dreams in an optimistic response to the pandemic.
How brokers can help millennials
With one in three millennials planning to buy a property within the next two years, Gibson says now is the time for brokers to build strong relationships.
“Millennials are savvy.”
“Our research has shown they are the generation most likely to have spotted a homeownership opportunity from the COVID crisis and they’re being clever about redirecting their ‘eating out’ and ‘holiday’ savings towards a home deposit.”
“However, for many millennials this could be the first time they’ve purchased a home and might be unaware of the all the ins and out of applying for a mortgage.”
Gibson says brokers can play a key role in helping the younger generation of home buyers prepare by imparting expert knowledge and helping them navigate the finance options available.
“Now is a great time for brokers to be building relationships with millennials.”
Education will be key
In a broader sense, the report shows that Australians are still optimistic about home ownership.
“Those who are in a position to do so are hoping to take advantage of the record low interest rates, a COVID softened housing market and government schemes.”
Gibson adds that there is an opportunity for brokers to establish themselves as “knowledge hubs” in order to educate their clients on how the loan application process has changed due to COVID-19 as well as the government schemes and incentives that are available.
He says brokers can also help clients keep up to date with rate changes in the current low rate environment.
The home as lifestyle hub
Following lockdown, about 30% of participants now see their home as a lifestyle hub – a place where many plan to continue working, exercising, socialising and dining despite public spaces being open again.
The report also reveals that about 68% of Australians believe they need more space or a different type of space to be fully comfortable at home – something that brokers can leverage with their existing client base.
“This insight is a useful one for a broker as it provides them with an opportunity to discuss with clients whether they have the space they need to now live and possibly even work comfortably at home.”
“This could mean a new property or even a renovation to their existing home.”
The report, which can be accessed on ING’s website, also offers tips on how Australians can create the ultimate home hub.
“We’re always listening to what Australians want and will continue to review and tweak our products accordingly.”
“We continue to provide competitive rates, simplify our application procedures and drive down processing times.”