What is the value of using a mortgage broker to secure a first home loan?

JANUARY 9, 2020

If you are a first-time homebuyer, there are many benefits in seeking the services of a mortgage broker.


First up a mortgage broker can tell you within 10-15 minutes if you qualify for a home. Better still a mortgage broker can potentially provide you with a selection of lenders who will be able to assist you onto the first rung of the property ladder. More significantly, if you run into a speedbump with an individual lender, a mortgage broker will be better placed to secure finance alternatives as they have access to several lenders. 


All lenders have different policies concerning first home buyers. Some lenders require more significant deposits than others or will assess your savings history and income differently. Moreover, some lenders, particularly the neobanks and the mortgage managers, won’t lend to first home buyers who want to construct a new home.


For many first home buyers, there is often some fear about the possibility of being rejected for a loan. Working with a mortgage broker can help assuage those fears and they can do this without affecting your credit rating.


Also, mortgage brokers are across the raft of Federal and state government first home buyer subsidies and stamp duty exemptions. For example, not all lenders have qualified for the Federal Government’s First Home Loan Deposit Scheme. The scheme guarantees that eligible borrowers on low and middle incomes can purchase a home with a deposit of as little as 5%. The scheme will support up to 10,000 loans each financial year, starting from 1 January 2020.


Both National Australia Bank and Commonwealth Bank of Australia started offering guaranteed loans on New Year’s Day. At the same time, 25 non-major lenders including mutual banks and credit unions will begin offering guaranteed loans from 1 February. A broker can tell you who are offering these guaranteed loans, as well as the state government subsidies and stamp duty incentives. 


In summary, a finance specialist such as Our Broker can show you the lenders who will do business with you, and what you need to do to qualify for a first home loan. 


If you’re considering buying a first property and require some finance, contact Our Broker today on 02 8232 0327.