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.