According to The State of Hispanic Homeownership Report, the Hispanic homeownership rate increased to 48.6 percent in 2022, and there are no signs of slowing down in 2023 and 2024. The industry has seen eight consecutive years of growth in this space despite rising interest rates and home prices. Hispanic/Latino borrower engagement began to skyrocket following the 2008 Great Recession and all lender and mortgage borrowers who didn’t engage this market have missed out on almost 2.96 million Hispanic home sales.
Understanding the Buyers
On average, Hispanic home buyers are purchasing homes eight years under the median age of the general population. Furthermore, the report goes on to mention one of the reasons the Hispanic home buying population has continued to see growth despite economic downturn, is the demographic’s work ethic and willingness to relocate to areas with lower Hispanic populations, enabling them to remain irrepressible. Hispanics have a strong desire for homeownership and entrepreneurship meaning Lenders that provide mortgage options tailored to this market can play a vital role in helping Hispanics achieve their financial goals.
As with most folks, Hispanic home buyers prefer to engage in their native language so it’s vital to ensure linguists have the needed experience and expertise to provide accurate translations while also maintaining the effectiveness of the original content.
Key Considerations When Translating Financial Materials:
- Market Size and Growth: The Hispanic population is one of the fastest-growing demographic groups in many countries - including the United States. This market represents a significant portion of the population, and its purchasing power is increasing steadily. Ignoring this market means missing out on potential customers and revenue
- Regulatory and Compliance: Financial institutions are often subject to regulations promoting fair lending and equal access to credit. Translating responsibly can help lenders meet regulatory requirements and avoid potential legal issues
- Long-Term Customer Relationships: Establishing strong relationships with Hispanic customers can lead to long-term loyalty and repeat business. By meeting their financial needs and providing excellent customer service, lenders can build trust and retain customers for years to come
The report states that as of today there are almost 10 million Hispanic homeowners and looking at 2022 data, there is an estimated additional 8 million mortgage-ready Latinos eager to get into homes, with another 3 million that are almost mortgage-ready. Forming more new households every year than the rest of the population, the need to have materials in-language will not only increase comprehension and readability for the buyer, but can also analyze data from the Hispanic market to provide lenders with valuable insights into consumer behavior, preferences, and trends. This information can inform product development and marketing strategies with the needed data. This will allow the necessary preparation time for transformation and organizational roadmaps.
It’s imperative to educate borrowers about mortgage documents, the purchasing/closing process, and ensure they fully understand the obligations of homeownership.
Many non-English speaking customers are underserved or have limited access to traditional banking and financial services. By understanding and catering to the cultural preferences and needs of those customers, you can not only help them make educated decisions about their finances, but also make the borrowing process significantly more accessible and convenient.
TransPerfect helps over 185,000 Hispanic home buyers get into their new homes every year and we are trusted by the world’s top lenders and financial institutions to creative effective LEP strategies.
To learn more how you can better serve your non-English speaking customers, email email@example.com.