As first home buyers make a welcome return to the market, many will be asking “Bank or broker? Who do I speak with first?” We look at why it pays to make a mortgage broker your first port of call.
Good news! The number of first home buyers returning to the property market is steadily increasing. New research by Aussie shows that first home buyers top the list of consumers looking to take out a home loan this year – representing 1 in 3 Australians in the market for a mortgage.
It’s great to see more Australians seizing the opportunity to own a home. Even better, a healthy combination of factors are working together to make the time just right for many first home buyers to step onto the property ladder. James Symond, CEO of Aussie, says the return of first home buyers “has been prompted by a number of different influences. The slight cooling of some of our larger property markets, current record-low interest rates, growing choice and complexity in home loans and improved first home buyer grant schemes.”
Bridge the knowledge gap
If you’re thinking about buying your first home it can seem like a no-brainer to head straight to your regular bank to ask about a home loan.
But, as one of the largest financial decisions many of us are likely to make, buying a first home calls for experts to explain how it all works – everything from the big picture to the small (but important) details. And that can be a stumbling block for first home buyers.
Aussie’s study found first home buyers feel they lack knowledge about home loans and don’t have the confidence to compare and select the right home loan.
James highlights the potential impact of this knowledge gap saying, “Our data shows that first home buyers take the longest to settle a home loan – on average about 100 days. This is around 35% longer than someone refinancing their home.” He adds, “We know first home buyers often need more education and support so they can feel confident in selecting the right home loan.”
Your broker offers valuable support
One of the pluses of speaking with a mortgage broker at an early stage, is that they will take the time to answer all your questions, helping you feel far more confident and informed about the home buying process.
In fact, first home buyers are increasingly making the smart decision to speak with a broker first. Aussie has seen a massive 55% increase in the number of first home buyers using one of their brokers.
It’s a positive sign that first home buyers are very savvy when it comes to seeking out expert mortgage advice and help finding and applying for the right home loan.
“Aussie Brokers are trained to help new borrowers in the way they want,” says James Symond. “Some first time buyers want to be educated steadily and taken through the mortgage process step by step, while others want to outsource as much as possible so it’s quick, easy and requires little of their time.”
The bottom line is that Aussie Brokers are providing more support than ever to help first home buyers achieve their goal of home ownership. And the benefits all flow first home buyers’ way. “Saving customers money, time and hassle are key elements of Aussie’s proposition and I believe this is why we’re seeing such strong growth in first home buyer activity,” observes James Symond.
Have you been weighing up whether to go with a bank or a broker? Make an appointment today to see how an Aussie Broker can help you make your property dream a reality.
You may also be interested in 5 ways a mortgage broker makes choosing a home loan easier, 5 reasons to use an Aussie Broker – from our customers! and Why your broker should be your go-to person for a home loan