Generation Y are missing out on entering the property market due to their tendency to skip from job-to-job, a new survey has found.
Mortgage broker Loan Market Group has discovered that more than one in 10 mortgage applications from the Gen Y demographic failed to pass job stability requirements in the six-month time period leading up to the loan request date.
“It’s considered common practice these days for Gen Ys to have job mobility, but the banks don’t always seem to approve,” Loan Market chief operating officer Dean Rushton said in a statement.
“Where a deposit of less than 20% 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.”
Rushton also said lenders were willing to accept changes in employment, but said Gen Y borrowers often need over 80% of the property price which dictate more stringent lending practices.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
