Summary
This article explores how borrowing habits differ across generations in the mortgage industry. It highlights the changing preferences of Millennials, Gen Z, and Baby Boomers when it comes to taking out mortgages and how mortgage professionals can cater to these distinct needs.
Do borrowing habits among generations change with age? Absolutely. The real question is how? Understanding the needs of each generation can help you better market your lending practice and build rapport with new leads. Here’s how you can help each generation reach their goals.
Borrowing Habits of Boomers
Born between 1946 and 1964, baby boomers are among your oldest clients. Those who haven’t reached retirement will soon enter it. How might this influence their real estate needs? Boomers may be aiming to:
- Purchase a second home to be near family
- Downsize their current home
- Refinance their current home
- Supplement their income with a second mortgage
At the same time, boomers have a different communication style and set of values compared to other generations.
What’s the best way to reach them? Focus on traditional methods. Mailers, events, and even direct phone calls can help you maintain a rapport with older borrowers. And while younger generations value videos and infographics, don’t hesitate to provide written materials to educate boomers.
Borrowing Habits of Generation X
Generation X was born between 1965 and 1980. This makes them surprisingly diverse. Many still have children living at home, while others are caring for aging relatives. Gen X may therefore be looking to:
- Purchase a multi-generational home
- Upgrade to a house with an option for a home office
- Relocate to a different neighborhood or part of the city
- Invest in a real estate property
Lenders can reach Gen X by blending the digital and personal touch. Optimize your web content and digital marketing plan, but provide options for in-person interactions as well.
Borrowing Habits of Millennials
Millennials were born between 1981 and 1996. This places them at a prime age to purchase a home or renovate their current home to accommodate a growing family. Many of these young borrowers are hoping to:
- Buy their first home
- Upgrade their current home
- Refinance their mortgage
- Relocate for better access to amenities/schools
Millennials are “digital natives,” meaning you can adopt a digital-first approach to reach this group. Focus on educating them about the lending process. Accenting first-time homebuyer programs can make it easier for young adults to visualize the purchase of their first home.
Borrowing Habits of Generation Z
Born between 1997 and 2012, Generation Z is the latest generation to join the real estate market. Most are looking for their first home, but they are also eager to:
- Explore eco-friendly features (smart features, energy-efficient appliances)
- Find flexible lending options for non-traditional borrowers
- Get customized information through interactive mortgage calculators
- Learn about eligibility requirements
Connect to this generation by publishing success stories and testimonials from former clients. You’ll build stronger rapport with your youngest clients and give them guidance that may help them return for future needs using generational marketing tactics.
Using a Mortgage CRM
You can market to every age group more effectively by using a customer relationship management (CRM) platform. The BNTouch mortgage CRM provides templates and features that help you nurture strong client relationships. Find out more by scheduling a demo today.
Key Takeaways
- Generational borrowing trends
Each generation has unique preferences for borrowing, from technology adoption to loan types.
- Millennials and Gen Z
Younger generations are more likely to use digital tools for the mortgage process, with a preference for faster and more streamlined experiences.
- Tailoring marketing efforts
Mortgage professionals should adjust their marketing strategies to meet the specific needs and preferences of each generation.
Commonly Asked Questions
- How do borrowing habits differ among generations?
Millennials and Gen Z prefer digital tools and faster processes, while Baby Boomers may prefer traditional methods.
- What should mortgage professionals consider when marketing to different generations?
They should tailor their marketing strategies to the preferences and needs of each generation, focusing on technology for younger borrowers and more traditional methods for older generations.
- Why is understanding generational borrowing habits important?
It allows mortgage professionals to connect with clients in a more relevant and personalized way, improving engagement and loan success.