Millennials poised to drive the Philippine home loan market

Millennials emerged as the fastest-growing generation to contribute to the growth of the home loan landscape in the country, according to the Philippines' online mortgage broker, Nook. As the platform disrupts the home loan process in the Philippines, millennials are seen to lead the industry as they express keen interest to invest in real estate properties.

The millennials — or Generation Y — are often lumped into somewhat narrow categories of traits and characteristics and are stigmatised for being self-absorbed and narcissistic, according to a research article by Grubbs et al. in 2019. While millennials are seen to prioritise other leisure activities, the data shows that millennials, in fact, are generally good financial planners.

Based on an article by Forbes in 2019, millennials are taking advantage of finding new alternative investments and securing stability to settle down for their future. The millennial generation is both captive to and captivated by growing their money over time, investing in various social and environmental causes.

Why millennials are warming to home loans

For a generation often caricatured as spenders rather than savers, the move into property tells a different story. Owning a home is increasingly seen as a long-term store of value and a foundation for the future — and as more millennials reach the stage of starting families and settling down, the appetite for a first home loan grows with them.

• Settling down for the long term. Millennials are looking past short-term leisure spending toward stability — and a home of their own sits at the centre of that plan.
• Treating property as an investment. Real estate is viewed not just as a place to live, but as one of the alternative investments this generation is actively seeking out.
• Comfortable doing it online. Having grown up digital, millennials are well suited to an online application journey rather than queuing at bank branches.

How Nook fits the millennial borrower

Nook was built to remove the friction that has long made a Philippine home loan feel intimidating. Instead of approaching lenders one by one, a borrower can compare more than 20 banks in one place, get pre-qualified in about three minutes, and have a dedicated loan consultant run the entire application on their behalf — from paperwork to bank follow-ups. Because the banks pay Nook a commission once a loan is released, the service is completely free to the borrower.

That done-for-you model is a natural fit for a digitally native generation that values both convenience and transparency. Rather than filling in bank forms or visiting branches, millennial buyers can see their real options up front and let Nook handle the back-and-forth — making the path to a first home far less daunting.

Founded in 2020, Nook has since grown into the Philippines' original and award-winning mortgage broker — recognised as the Awarded Best Mortgage Broker Philippines by the Pan Finance Business Awards — and works toward its mission of helping 1,000,000 Filipino families buy their own home.

This article summarises Nook's commentary on millennial home-loan demand in the Philippines. Read more from mb.com.ph.