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The general manager of listed aggregation group eChoice says there has been a “clear demographical shift” in what a typical mortgage customer will look like in the future.
Blake Buchanan says an ageing population, historically low interest rates, regulatory intervention and inflated capital city markets are all playing a part in impacting buyer behaviour and appetite. These factors, individually and collectively, can redefine what a ‘typical’ customer may look like in the future.
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“Traditional market segments in relation to first home buyers, owner-occupiers and investors may not remain as relevant as they are today as we see cashed up and equity-laden Baby Boomers decide their future,” Mr Buchanan said.
“Whether they downsize or look to acquire aspirational property as their next or possibly last purchase, that particular customer segment will more than likely open up possibilities for brokers to play a greater part in guidance and facilitation.”
Mr Buchanan said the resurgence of reverse mortgages and development of aged care loans could be the start of products designed to enable each life stage of an aging population.
He also noted the rise of ethnic markets “which are already playing a role as developers look to embracing specific cultural preference when designing new residential hubs”.
“A broker’s preparedness will very much depend on the vision and agility of their aggregator, who will be key to identifying trends and refining their product and service proposition to allow brokers to unrestrainedly capitalise on the business opportunities any new customer segments will bring.”
Mr Buchanan said forward-thinking business support programs will become a critical component in preparing brokers to engage with and service those new and emerging customer segments.
“It’s all part of continued adaptation in order to thrive,” he said.
[Related: New report identifies shifting buyer demographics]
