A recent survey conducted as part of the Fujitsu/JPMorgan Australian Mortgage industry Report (Volume 4) found that there are significant differences in attitudes towards mortgage lenders and awareness of interest rates between different age groups.
The survey divided respondents into four groups by age - Seniors (over 60 years old), Baby Boomers (between 45-60), Generation X (between 30-45) and Generation Y (between 18-30).
The survey found that:
* Significantly more Baby Boomers and Generation X prefer to use a mortgage broker, compared to Seniors and Generation Y respondents, who said they would prefer to use a bank for their home loan needs.
* Generation Xers are more aware of mortgage interest rates - with 88 per cent claiming they could quote the interest rate on their mortgage while only 22 per cent could quote the interest rate on their credit card.
* Baby Boomers were also considerably more aware of their mortgage interest rate with 55 per cent of respondents claiming they could quote the interest rate on their mortgage, compared to 28 per cent who could quote the interest rate on their credit card. On the other hand, only 32 per cent of Seniors and 24 per cent of Generation Y respondents were aware of the interest rate on their home loans. (Perhaps because most people in these last two groups don't HAVE a home loan!)
* Generation X showed the highest predilection towards fixed rate loans, with more than 51 per cent claiming they would consider a long-term fixed rate re-finance compared to 31 per cent of Baby Boomers, 13 per cent of Generation Y and one per cent of Seniors.
* Boomers were more likely to have investment properties than Seniors (67 per cent and 41 per cent respectively).
* Owner-occupied mortgages were most prevalent amongst the Generation X group (55 per cent) while investment mortgages were significantly more popular in the Baby Boomer group (59 per cent).
* Unsecured lending was most common in the younger peer groups, with 36 per cent of Generations Y and 22 per cent of Generation X with unsecured car loans.