Do not underestimate the millennial: a demographic that comprises individuals born between 1980–2000. Even though these people may be living in their parents’ home well beyond the age of 30, and live a very enabled and ‘spoon-fed’ lifestyle, we shouldn’t paint everyone in this generation with the same brush. What is important to note, however, is that there are some general observations about millennials that we can learn a lot about in terms of establishing home loans in Melbourne.
While booting these millennials out of their parents’ domicile may be enticing, the housing market has changed dramatically over the past three decades, which is why more and more people are electing to live with family.
We often find that millennials require the financial support of their family to find the boost they need to organise home loans in Melbourne. Realising this reality about securing a home for the average millennial helps mortgage brokers like Hunter Lending Group develop a plan that is tailored to best suit your requirements.
Our professionals, in consultation with you, will assess your financial needs, borrowing capacity, and repayment scope and ensure you are making an educated and fully informed decision, taking into consideration additional costs such as:
Be nice to your family, especially if you are a millennial in need of funds to support a home loan deposit. A cash gift may just be enough to get you over the line. However, there are other aspects to consider though. If you think a little money will go a long way to secure home loans in Melbourne, ensure the funds sit in the millennial’s own account for at least three-to-six months so that banks and third parties recognise it as a legitimate deposit. Also, lenders will want to see a consistent income stream as well as evidence of capacity to service the remainder of the mortgage, so plan ahead. For more information, get in touch today.
Be a guarantor
This approach means you don’t have to hand over any cash and your children won’t have to spend years trying to outrun rising property prices as they save for a deposit. However, your child will still need to demonstrate that they can service the loan repayments and lenders vary in how much equity they like to see before granting mortgages using this method. We also recommend having a very honest and brutal conversation about what happens in case of default – consider a backup plan if your child defaults or loses his/her income and consider the possibility that you may need to go the private rental market to find tenants who can pay rent to service the loan.
To learn more about our mortgage brokerage services, call (03) 9497 4917 today.