When it comes to borrowing for their home purchases, nearly half of all Millennials went through a mortgage broker, making them the largest customer group currently in the market.
A new research by Roy Morgan showed that over the past twelve months to March 2018, millennials – defined as people born between 1976 and 1990 – comprised 48.6% of existing home borrowers who used a mortgage broker.
Members of Generation X, who were born between the years 1961 and 1975, accounted for 38.8% of those who consulted a mortgage broker for their home loans.
The research found that 42.5% of millennials with a five-year home loan used a mortgage broker. Roy Morgan industry communications director Norman Morris explained that this could be due to several 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," Morris said.
Another potential reason for these millennials to seek the help of brokers is to get a better interest rate.
In contrast, older generations may be less likely to go through the process with a mortgage broker. Only 37% of Gen Xers and 27.6% of Baby Boomers did consult a broker while the rest went straight to the lending institution.
Collections: Mortgage News