Millennials make up a big slice of the mortgage broker market

By Gerv Tacadena

Millennials are the biggest market for mortgage brokers

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.

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