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MFAA Prosper : Mortgage and Finance Brief 10
We quizzed three brokers from around the country about the challenges in helping Gen Y access a mortgage. Tanya Matty, Home Loan Connexion, Gold Coast and Tweed Coast What proportion of your business comes from Gen Y first-home buyers? Approximately 70% of my business would come from Generation Y. Twenty per cent first home buyers and 50% from the older half of Gen Y who are now moving and up-sizing from a unit to a house. What are the most common questions asked by first-home buyers? What government rebates are still available? Where do I buy? How much do I need? How can I save more? I like to ensure all of my clients are totally comfortable and educated with all the facts going into the new commitment. What are the key challenges in dealing with Gen Y buyers? Being Gen Y myself, I know that Gen Ys love to dream and aspire to be "faster, better and stronger". My advice to these buyers is to purchase what they can afford now. Their first home should be viewed as their starter home -- so I guide and advise them to live within their means, set savings targets, and position themselves to build wealth. How do you communicate with Gen Ys? My communications and documents are all complemented with texts and emails. Using social networking sites is paramount, and it is at the core of my marketing. Suzanne O'Connor, director, Dominion Finance, Canberra What proportion of your business comes from Gen Y first-home buyers? Approximately one third of my clients are Gen Y. This number of first-home buyers has certainly grown over the past five years with the incentives offered by the government. What are the most common questions asked by first-home buyers? They often lack understanding of mortgage insurance, believing that it covers them, not the lender. Another common belief is that a deposit of 5% is sufficient, unaware that they may also need to cover the stamp duty and other associated costs. What are the key challenges in dealing with Gen Y buyers? Gen Y has very high expectations when it comes to service, their entitlements and the likelihood of their loan being approved. They will continually search for a better deal to reduce costs and life of the loan. How do you communicate with Gen Ys? Gen Y loves electronic media and expects an instant response and constant updates. Therefore I use a combination of texting and email, and have recently started dabbling in social networking sites. I have far fewer face-to-face meetings with Gen Y clients as we have daily online communication. Anna Chawa, territory manager, Refund Home Loans, Rosehill, NSW What proportion of your business comes from Gen Y first-home buyers? About 40% of my business comes from first- home buyers, of which about half are Gen Y. What are the most common questions asked by first-home buyers? The most common question I get asked is 'how much deposit do I/we need'. What are the key challenges in dealing with Gen Y buyers? Gen Y buyers often do their own research, and often turn to older siblings and friends who may have recently bought their first property, and sometimes even to their parents. Sometimes the information that they have been given isn't always the best advice, and it can be difficult to convince them of that. How do you communicate with Gen Ys? A lot of my communication is via email and SMS, in fact to all of my clients, but particularly to Gen Y. Phone calls are still important at particular times, to give a more personalised service. I currently have a LinkedIn profile to connect with business partners, and local and industry connections. Open to question 22 | Mortgage & Finance brief Opinion
Mortgage and Finance Brief 09
Mortgage and Finance Brief 11