Over half of Gen Z and Millennials are looking to enter the property market in the next five years

 

New research comes as ubank announces a number of interest rate decreases to its home lending products.

In line with Spring home buying season, digital bank ubank has released new research revealing how Gen Z and Millennials are feeling about their chances of home ownership, and some of the factors they find stressful and confusing along the way.

According to the research, the Australian dream of home ownership remains alive and well with over half (56 per cent) of Gen Z and Millennial non-homeowners looking to make the dream a reality within the next five years and 89 per cent of this group agreeing that it’s one of their goals in life.

However, most (95 per cent) non-homeowners reported barriers, with the main ones being high property prices (63 per cent), difficulties in saving for a deposit (42 per cent), and high interest rates (39 per cent).

The research comes as ubank announced a number of interest rate decreases to some of its home lending products today in an effort to help customers get ahead with the right home loan, whether they’re first time buyers or seasoned investors. The changes include decreases to ubank’s variable Flex rates for those new to the bank and decreases to fixed Flex rates for owner occupied and investor loans across 1–5-year terms.

The research also found that when it came to home buying, both Gen Z and Millennial homeowners and prospective buyers found the process and terminology to be stressful and confusing.

Amongst prospective buyers, 76 per cent reported that they found the home buying process stressful. Amongst homeowners and prospective buyers alike, 79 per cent found one or more of the terminology or jargon used confusing, with ‘break costs’, ‘LVR’ and ‘redraw facility’ the topping the list.

To help customers, ubank has created educational content and guides to unpack the jargon and answer the most common questions about first home buying. Additionally, the bank has partnered with Ladies Finance Club and in October will go on a national roadshow designed to provide prospective buyers with general information on navigating the home-buying process from start to finish so they can make informed decisions about their first property purchase.

Ubank’s Chief Home Lending Officer, Kanishka Raja, said: “Buying a home is an exciting journey, but it can also be challenging, especially in today’s environment.

“As a digital bank, we cater to a generation of Australians who prefer to do things online. We understand that the process can be stressful, and that’s why we’re using technology to make home lending fast, simple, and easy and partnering with individuals and organisations to demystify the home buying journey.

“Digital home loans are a great option because of the market competitive interest rates and low or no fees on offer. Plus, the application process is straightforward. For instance, at ubank, we’ve lowered a number of our home loan rates to help our customers, many of whom are first-time buyers, get their foot in the door faster,” he said.

“Ubank is continuing its focus on building innovative digital end-to-end experiences as it accelerates growth in home lending. This commitment includes a fully digital and simplified application process, which ensures a fast response time for unconditional approval status and provides customers with confidence in the next step of their home buying journey.

Recently, the digital bank launched App Tracker allowing customers to track the status and progress of their application from submission through to settlement. “App Tracker gives real-time updates on application statuses, required actions, and upcoming steps, providing customers with clarity on what’s happening behind the scenes in one of the biggest moments of their lives,” Mr Raja said.

 

For more information on Ubank’s products and services including the bank’s home loan rates, visit: https://www.ubank.com.au/home-loans
For more information on ubank’s partnership with Ladies Finance Club and the upcoming roadshows, visit AUS Roadshow | Ladies Finance Club on Tour 2024

 

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About ubank
Ubank is a daily money companion, empowering a new generation of Australians to be more successful with their money, offering proactive product features and insights designed to help Australians get ahead.

About the research
All figures, unless otherwise stated, are from YouGov. Total sample size was 1311 adults. Fieldwork was undertaken between 31 May – 6 June 2024. The survey was carried out online. The figures have been weighted and are representative of all Australian Gen Z and Millennials (aged 18 to 43).

Media enquiries
For media enquiries, please email: media@ubank.com.au
For more ubank Newsroom stories, visit: https://www.ubank.com.au/newsroom