In this initial research, we were able to provide robust findings for stage #1 of the Australian Millennials'/first time home buyers' purchase journey. Our research also touched stage #2 to some extent. However, we were not able to cover the stage #3 in this research.
Stage #1: Dreaming
- Around 94% of Australian Millennials consider that homeownership is important to them and almost 58% of them are already saving up for the home loan deposit money. On the other hand, 57% claim that they are completely unaware of Lenders Mortgage Insurance (LMI).
- About 31% of Aussie Millennials think that they would not qualify for a mortgage while more than half (58%) think that they can not afford the home loan deposit yet.
- Out of the people who were aware of Lenders Mortgage Insurance (LMI), almost 23% were unaware that it could allow them to purchase a house with less than a 20% deposit.
- Around 63% of Millennials in Australia live with their parents because they can nnot afford to buy a house. On the other hand, about 45% of Aussie Millennials consider interest rates as a big concern.
- The factors that discourage an Australian to buy a house include having the deposit (47%)
, getting a loan approved (45%), stamp duty
(44%), the certainty of employment
(43%), interest rates (38%)
, and meeting repayments
Stage #2: Researching
- The platforms/channels used by the prospective Australian home buyers to research about home loans include bank websites, search engine, real estate websites, visit/call banks, conversation with others, visit/call mortgage broker, comparison sites, mortgage broker websites, and talking to the real estate agent.
- It was found in a survey that most consumers' minds are already made up before they reach out to anyone. Australian home loan buyers spend a lot of time researching to feel like an expert before they reach out to the financial providers.
Stage #3: In the market