How Gen Z is reshaping
the Australian home loan market
Navigate this article
At a glance | Gen Z’s path to home ownership | How property buying is changing |
Why younger borrowers consider non-bank lenders | What younger borrowers value |
Home loan features that matter | Using multiple income streams |
Technology and home loan applications | What this means for home buyers | FAQs
For many younger Aussies, buying a home can feel very different to how it was for previous generations.
Rising property prices, higher living costs and changing ways of working mean many first home buyers are taking a different path to home ownership.
You might be earning income from a full-time job, freelance work, a side business or a combination of all three. You may also be saving for a deposit while paying rent and managing day-to-day expenses.
As a result, expectations around the home loan experience are changing, with simplicity, transparency and flexibility becoming increasingly important.
At a glance
Today, many home buyers are:
%20(1).svg){kind=icon}
As a result, flexibility, transparency and convenience are becoming increasingly important when choosing a lender.
Why many younger borrowers are taking a different path to home ownership
For people entering the property market today, income doesn't always come from a single employer or a traditional nine-to-five job.
You might work full-time while earning extra income through freelance projects, contract work or a side business. You may also be self-employed or earning income from several different sources.
While these work arrangements can offer flexibility, they can also make applying for a home loan more complex. 2
It's increasingly common for first home buyers to have:
- income from more than one source
- self-employment or contract work
- shorter employment histories
- greater reliance on digital financial tools
- less traditional financial circumstances than previous generations
Why buying property looks different for Gen Z
For many first home buyers, the biggest challenge isn't deciding whether they want to own a home. It's working out how to get there.
Higher property prices, larger deposits and increased living costs mean many first home buyers need to save for longer and carefully balance competing financial priorities.
As a result, people entering the market today may be:
This changing financial landscape helps explain why flexibility, digital experiences and recognition of different income sources are becoming increasingly important when choosing a lender.
For borrowers, this can mean having more choice when comparing lenders and home loan options.
Why some younger borrowers are exploring non-bank lenders
For people who are used to managing most aspects of life online, the home loan experience can be almost as important as the loan itself.
Some borrowers are exploring non-bank lenders because they may offer features and experiences that better match these expectations.
The rise of mortgage brokers has also helped more Australians discover non-bank lenders. Brokers now arrange almost 77% of new residential home loans in Australia, making it easier for borrowers to compare lenders and loan options. Through mortgage brokers, lenders outside the major banks account for around 40% of home loan applications. 4,5
As more Australians use mortgage brokers, awareness of alternatives to the major banks continues to grow.
A simpler digital experience
Faster updates and greater transparency
Buying a property can be stressful, especially in a competitive market.
Knowing where your application stands and receiving regular updates could reduce uncertainty and help prepare you for what’s next.
Flexible income assessment
Example: Earning income from more than one source
Emma, 27, is saving for her first home.
She works full-time and also earns extra income through freelance design projects.
Although her income is consistent overall, it comes from more than one source.
Depending on the lender and their requirements, borrowers in a similar situation may find that some lenders are able to consider a broader picture of their financial circumstances when assessing a home loan application.
What younger borrowers value in a home loan experience
Most younger borrowers aren't choosing between banks and non-bank lenders based on brand alone. They're often looking for a borrowing experience that feels simple, transparent and easy to manage.
Common frustrations can include:
- lengthy application processes
- complex paperwork
- limited flexibility around income verification
- uncertainty during assessment
- slow response times
These factors can lead some borrowers to explore different lending options that better suit their needs.
What features matter most to Gen Z borrowers?
Many younger Aussies value:
- mobile-friendly applications
- clear, plain-English communication
- visibility throughout the application process
- digital document sharing
- flexible ways of verifying income
- clear explanations of fees and repayments
Having grown up with digital services in almost every part of life, many of today’s borrowers expect the home loan process to feel equally straightforward and transparent.6,7
These expectations influence both lender choice and long-term customer engagement. For many borrowers, the best home loan experience is one that feels simple, transparent and easy to manage from start to finish.
Can Gen Z borrowers get a home loan with multiple income streams?
For Gen Z borrowers with straightforward PAYG income, banks and non-banks may offer similar pathways.
However, borrowers with:
- multiple income streams
- short self-employment histories
- gig economy income
- contract income
- limited credit history
may find that some non-bank lenders offer additional flexibility by taking a broader view of their overall financial situation and ability to manage repayments.
Lending eligibility and assessment criteria vary from lender to lender, so it's important to compare options and seek professional advice where appropriate.
How technology is making home loan applications easier
Applying for a home loan is becoming easier thanks to technology such as the Consumer Data Right (CDR).
The Consumer Data Right allows you to securely share your financial information with participating and accredited data holders. This can help reduce paperwork and make parts of the application process quicker and simpler.6,7
Instead of collecting and uploading multiple documents, you may be able to securely share information electronically, helping streamline the application process.
For many borrowers, this can mean less paperwork, greater convenience and faster outcomes.
Importantly, you stay in control of your information. The Consumer Data Right is designed with security and privacy in mind, and you choose what information is shared and who it is shared with.
What this means if you're looking to buy a home
Buying a home today can feel challenging, especially for those entering the property market for the first time.
Rising property prices, changing employment patterns and higher living costs have created a different borrowing environment from the one previous generations experienced.
The good news is that borrowers now have more choice than ever before.
Whether you're earning income from a traditional salary, running a business or combining multiple income streams, understanding how different lenders assess applications can help you explore the options available to you.
If you're considering buying a home, speaking with a mortgage broker or lender could help you understand which solutions may best suit your circumstances and goals.
Frequently asked questions
Yes. While affordability remains a challenge, plenty of people in their twenties are actively saving for a deposit, buying with a partner and exploring different pathways into home ownership.
Potentially. Many lenders assess a range of income sources, and some non-bank lenders may consider alternative forms of income verification for eligible borrowers.
For many young Australians, saving a deposit while managing rising living costs and housing affordability pressures remains one of the biggest barriers to home ownership.
Non-bank lenders are a regulated part of Australia's financial services sector and must comply with consumer protection laws, responsible lending obligations and licensing requirements.
Sources:
1. Helia Group: The home ownership hustle.
2. Australian Bureau of Statistics, Characteristics of Employment, Australia, August 2025.
3. Australian Institute of Health and Welfare (AIHW), Home Ownership and Housing Tenure.
4. Mortgage & Finance Association of Australia (MFAA), Mortgage Broker Market Share Reaches New Peak, June 2025.
5. Australian Finance Group (AFG), Non-Major Lenders Grow Market Share, April 2025.
6. Consumer Data Right (CDR), Australian Government.
7. Australian Competition and Consumer Commission (ACCC), The Consumer Data Right.
Contributor | Vasè Marcevska, Head of Direct Sales – Mortgages and Personal Loans
Vasè has over 16 years of experience in the Banking and Finance sector, specifically within the Third Party and Consumer lending industry. Her expertise now focuses on enhancing our Customer program through a deep understanding of mortgage origination and service excellence across our Financial products.
Published by Pepper Money. Read our Editorial Policy to learn how we create and review content.
Want to find out where you stand?
Sign up to our newsletter
If you like this article, you'll love our Really helpful newsletter.
Personal information is collected, used, stored and disclosed in accordance with Pepper's Privacy Policy. I understand I can unsubscribe at any time.
Get up to speed with how a home loan works
It can be confusing! If you don’t know your LMI from your LVR check out our Resources Hub, it’s full of helpful information.
