Just a few decades ago, almost no one had internet access. Now, the internet has fully invaded every industry, and housing mortgages are no exception.

The housing market has struggled to grab the new millennial consumer audience. Research has shown that, largely due to the emergence of the sharing economy and changing generational values, young people are not buying homes or cars. Especially compared to their parents’ generation, hardly any young people plan on buying a home in the next decade. Mortgage rates are low, and employment rates are high, but it is simply not a priority for many.

How are mortgage companies capturing millennial audiences?

Instead of trying to rope in young audiences with expansive ad campaigns or through rate incentives, some mortgage companies are taking a different approach. Instead of getting the customer to come to them, they are picking up their businesses and taking it to the customer. And where else could millennials be but – you guessed it- the internet.

It is widely known that millennials essentially live on the internet. They conduct much of their public and private business online. They are the children of the internet age – the expectation is that information on products (in this case, homes) will be readily available, easily accessible, accurate and fast.

Information Access is the key appeal for younger generations

Companies like Zillow, Redfin, and Realtor.com operate well-interfaced real estate search engines that cater to young people’s preference for finding information online rather than heading to an office or hiring a real estate agent.

This online search capability gives a sense of power to the buyer, as they feel they have more control over their finances and future when they are secure that they have accurate information and are not being taken advantage of by a salesperson.

Online mortgages have also entirely changed the lending market. By moving from banks to the web, more people can take out mortgages and gather information about the best rates.

Most millennials want to do as much of the home buying process as possible by themselves, but eventually many also want the affirmation of a real, expert agent. Therefore, even though mortgages are being steadily shifted online, it can never quite push out the importance of loan agents and realtors.

There are plenty of benefits to online mortgage boom, but some negative impacts as well

Online mortgages are often available at the lowest possible rates, but without the help of an expert to walk you through the entire process and regulations. This could lead to additional costs down the line due to a lack of understanding of the terms of a mortgage. However, current technology has made us biased towards the belief that most large purchases can be done very quickly, an aspect where online mortgages have a huge advantage over traditional ones.

Advisory HQ published their recent list of the best-rated online mortgage companies, including:

-Quickenloans
-AmeriSave
-LendingTree
-Sebonic Financial

These companies all have a few things in common which determine online lenders’ success:
-understandable online interface
-customisable products
-low rates
-fast turnover

Further reading:

https://academymortgage.com/news/article/industry-updates/technology-continues-to-impact-the-housing-industry
http://www.themreport.com/news/origination/05-12-2016/the-digital-revolution-in-the-mortgage-industry

http://www.advisoryhq.com/articles/best-online-mortgage-lenders/

Keywords:
housing market, millennial consumer, online mortgage, online lenders, online mortgage companies, real estate search engine, online mortgage, loan agent, online interface, online search, millennial consumer