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Battle of the Generations: Loan Market

There may be a huge generational gap between Baby Boomers and Generation Y, but there’s one thing both groups are interested in, and that’s property. Where once upon a time, home loans or both groups would have been the same standard bank loan, there are now some vastly different options available to help both generations achieve their property ownership goals.

Baby Boomers

Born between 1946 and 1964, these people are rapidly approaching retirement and are keen to secure their financial future. More often than not, baby boomers are looking for investment opportunities such as property and shares to help provide income after they have left full time work. Loans for investment property used to be expensive and difficult to secure, not to mention one-dimensional, and often with requirements for a huge deposit. Not any more.

Investment loans are now often just as flexible and offer as many features and options as a loan for an owner-occupier.

Interest rates are very competitive, and depending on your circumstances and the lender you choose, you can pick from a variable or fixed rate.

Repayment options have also opened new doors, with Interest Only repayments proving very popular, rather than Principle & Interest repayments.

Baby Boomers are well-known for their high rate of home ownership, and this
could make securing an investment property even easier. Talk to you local home loan consultant about how equity can help you purchase investment property.

Gen Y

Those of Generation Y, born between 1978 and 1997, are more likely to be first home buyers, although there is also definite interest in the investment market from this group of savvy purchasers. The first home buyer market has become hotly contested this century as lenders provide more innovative products to assist this group to achieve the dream of home ownership.

Just some of the ways lenders are making it easier to purchase property include:

• No deposit loans
• Tenants in common
• Limited guarantor

Keep in mind, new loan types and borrowing methods are being investigated and introduced all the time, so for the latest information it’s best to sit down with your home loan consultant.

About Loan Market

Loan Market has 40 specialist home loan brokers across New Zealand providing expert home loan service and advice, and a range of complementary services including home and contents protection and life and income continuation insurance. Loan Market secured a record $1 billion in home loans during the 2006 financial year.

To arrange your FREE home loan consultation simply email us or visit our website.