Women still interested in property, despite uncertainty

(Jen Hughes, Eleanor Creagh, Fiona Manley, Jane Counsel)

At the recent MFAA Women of Influence event on 24 May in Sydney, Mortgage Choice brokers Fiona Manley and Jen Hughes joined PropTrack Senior Economist Eleanor Creagh for a discussion about women, broking and the economy.

According to Creagh, the current economic environment is certainly challenging, but the real situation for many homeowners is unlikely to be as bad as headlines suggest.

She pointed out that female participation in the workforce rose to a record high of 62.5% in March, boosted by the flexible working arrangements introduced during COVID lockdowns. That’s good news in terms of access for women who want to buy property.

“Federal budget initiatives are also helping women into home ownership,” Creagh added. “The changes to the First Home Guarantee announced in the Federal Budget apply to people who haven’t owned a home in 10 years. This is especially helpful for separated women and older women.”

Citing Grattan Institute figures from 2022, Creagh said more than half (56%) of separated women are unable to buy a home within a decade of separating; and while many women over the age of 55 have enough for a deposit on a home, they end up renting because they can’t afford a mortgage after retiring.

She added that being able to buy with siblings or other people under the Guarantee also expands the options available to women.

Broker view: No need for clients to panic

Leaning towards a rate pause in June, and with the peak in interest rates now in sight, Creagh said homeowners are likely to continue to prioritise their mortgage repayments and be slower to spend in other economic areas. This is especially true for the 800,000 borrowers due to roll off their fixed-rate term in 2023.

“The end of these fixed rates will see a significant step change in their mortgage servicing costs, and have a pretty large impact on household budgets. For an average $600,000 mortgage, it’s going to mean an extra $20,000 per year,” she said.

However, Cregh pointed to mitigating factors such as low unemployment and a tight labour market, meaning people are still in work. She added: “Those who locked in those really low fixed rates are likely to have made large savings over that time, as well as having substantially higher home equity as house prices are still above pre-pandemic levels.”

The panel acknowledged that while Australians are feeling pressure from rising interest rates and increases in the cost of living, it was important for homeowners and aspiring property buyers to remember a backup plan is built into their mortgage to some extent.

“Banks assess your mortgage by assuming a higher interest rate than the one available at the time you buy, and you’ll have discussed rising interest rates with your broker,” said Manley, a broker and Mortgage Choice franchisee in Adelaide, SA, who has worked in the sector for two decades. “Homeowners can be reassured that they’re prepared for this.”

Planning puts women in a strong position

Hughes, a Mortgage Choice franchisee from Merimbula, NSW, noted that women are often the instigator of a property sale or purchase, and are often the partner who has the final say. Manley agreed.

“In my 23 years of broking, I’ve noticed that as a general rule, the women are the ones who make the decisions – she might agree with her husband’s decision, but if she doesn’t, that decision changes!” said Manley.

Hughes observed that women seem to be the visionaries in their relationships, and are often the first to contact her – armed with their own research – to investigate their property options.

Hughes asks her clients to lean into this forward-thinking capacity by beginning to plan their budget six to 12 months ahead of purchase.

“It’s amazing what six to 12 months of planning, budgeting and preparation does. When we get to the loan application, I feel like it’s always easier and less stressful, especially when it’s a single person buying on their own,” Hughes said.

While the brokers agreed that there was little difference between women and men when it came to budgeting skill – it depends less on gender than on an individual’s mindset, they said – Hughes thought that women were more open to discussing the detail of their budget and nailing down where there could be creative ways to save.

Plenty of opportunities for women in broking

Despite women’s decisive role when it comes to buying or selling properties, only one in four mortgage brokers are female.

“That’s a similar figure to women’s representation in economics, another traditionally male-dominated area of the finance industry”, said Creagh.

“I think that’s a real shame. I believe careers in finance can be incredibly rewarding for women and there is a diverse range of fields in which you can work,” she said.

Manley and Hughes said as brokers they gain immense satisfaction in finding the right solution for their clients and helping them make one of life’s most rewarding purchases.

Given the current economic environment, they find that customers are more eager than ever to keep in touch with their broker. Both Manley and Hughes said staying on top of rates and customer communication was their biggest concern at the moment – as is maintaining their own health and wellbeing during challenging times.

Both women rise early and have consistent routines at home and in the office, which helps keep their health and business on track.

“I try not to focus on the things that don’t work well – you have to focus on the small wins, what you can control,” said Manley.

Hughes said that she felt female business owners tended to believe that ”nobody cares for their customers the way I care.”

Manley agreed: “With business owners – I think female business owners especially – they want to be all over everything. The biggest challenge is being prepared to let go of that.”

Mortgage Choice’s partnership with the MFAA on its Women of Influence event series is just one of the ways the brokerage is working to increase female participation in broking. Launched in 2020, the Mortgage Choice Aspire program is designed to nurture women within the Mortgage Choice network, and to address the gender imbalance in the broking industry.

And the Aspire program is generating results: in 2022, 56% of all new Mortgage Choice recruits were women, and the proportion of women brokers in the network is up 2 percentage points year-on-year.

¹ Australian Bureau of Statistics, Gender Indicators, accessed 25 May 2023.