Mortgage products need to appeal to Gen Y’s

Over the past 2 years there has been an overall percentage increase of almost 50% (from 5.9% – 8.5%) in the standard variable interest rates in Australia . This has put a credit squeeze on overcommitted homebuyers and investors. The flow through effect has seen an increase in demand for rental property which creates huge pressure on housing availability in rental markets. There were news reports today of record 0.9% vacancy rates in NSW.

The state government are looking at ways to encourage investors back into the market. Hopefully, this may open up some new opportunities for first time Gen Y investors.

As new medical advancements develop, our life expectancy will naturally increase & therefore I can’t understand why the banks haven’t considered increasing the maximum term for their home loans, especially for Gen Y’s.

What do you think?