"Gen Y" struggle to secure home loans
Aussies aged between 18 and 24 years – also known as "Gen Y" are struggling to secure home loans because they cannot pass job stability requirements in the six-month period leading up to the loan application, new research has found.
Loan Market Group said that more than one in ten Gen Y mortgage applications have failed because of job security issues, the Daily Telegraph reports.
Dean Rushton, chief operating officer at Loan Market Group, told the news provider that many lenders did not approve of the high job mobility of the age group.
He added that Gen Ys often needed to borrow more than 80 per cent of the property price, which meant that stricter lending practices came in relating to employment stability.
"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 told the newspaper.
The findings will be relevant to any young Aussies who wish to compare home loans. Mortgages have become more expensive in recent weeks since the Reserve Bank decided to raise the cash rate by 25 basis points to 3.75 per cent at the beginning of the month.
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