Blog 01

Generation Z is the new generation to become first-time home buyers with them entering their mid-

20s. Because financial security is a core value for Gen Z, they have an inclination towards saving

money, thinking about home ownership, and investing money in the very early stages. According to

several researches about 73% are planning on buying a house within the next 10 years. But this

generation is different from millennials and other generations, so the process of buying and lending

mortgages has to be adapted to suit them.

They are the first generation that grew up with computers and the internet. Furthermore, they’re

the most divers and educated generation. Because of that they will most likely do personal research

online first and already educate themselves about interest rate and fees. An easy-to-navigate and

even smartphone-friendly website is the first step to attract them. Providing them as much

information online about products and services – like digital mortgages and digital 1003 – affording

them the opportunity not only to make digital mortgage applications, but with digital pre approvals,

having the ability for them to use loan origination systems (LOS) online if they want and then also

granting them access to Point of Sale systems.

Gen Z-ers expect a lot of transparency in their dealings with companies, so it’s best to make the

process granular and transparent.

But they are facing obstacles with one of their biggest concerns being financial. More the two thirds

are worried about not having enough for a down payment or finding homes within their price range.

Still Gen Z-ers are ready to safe up to 32% of their income to be able to afford a home in the near

future. Historically low mortgage interest rates and the growth of the work-from-home culture

during the pandemic have been positively affecting first-time home ownerships.