Gen Y’s struggle in quest for home ownership

Gen Y’s struggle in quest for home ownership

22 December 2009 by Staff Reporter 0 comments

The propensity of Gen Y to hop from job to job could be stopping them from owning their own home.

According to data collected by Loan Market Group, more than one in 10 mortgage applications from the Generation Y age group failed to pass job stability requirements in the six month period leading up to the loan request.

The mortgage brokerage’s chief operating officer Dean Rushton said while it was common practice for young professionals to have a certain amount of job mobility, the banks did not always approve.

"Where a deposit of less than 20 per cent is available, most lenders require their applicants to have been employed for at least 12 months with their current employer or have been continuously employed in the same industry for at least 24 months," Mr Rushton said.

"So while it is not impossible for job-hopping Gen Yers to get a loan, it is certainly more difficult."

The propensity of Gen Y to hop from job to job could be stopping them from owning their own home.

According to data collected by Loan Market Group, more than one in 10 mortgage applications from the Generation Y age group failed to pass job stability requirements in the six month period leading up to the loan request.

The mortgage brokerage’s chief operating officer Dean Rushton said while it was common practice for young professionals to have a certain amount of job mobility, the banks did not always approve.

"Where a deposit of less than 20 per cent is available, most lenders require their applicants to have been employed for at least 12 months with their current employer or have been continuously employed in the same industry for at least 24 months," Mr Rushton said.

"So while it is not impossible for job-hopping Gen Yers to get a loan, it is certainly more difficult."

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