How A Mortgage Broker Can Help First Home Buyers

Buying your first property is an exciting milestone. For a first home buyer, buying your own piece of paradise to make your own is enough incentive to jump through all the leaps and hurdles that come with the home-buying process. 

Even though the prospect of owning a home is thrilling, it can also feel just as daunting. The good news is that a mortgage broker’s job is to make that whole first home purchase experience much smoother for you, with a much bigger chance of success.

Here’s how a mortgage broker can help simplify the home loan application and purchasing process (at no cost to you).

We’ll walk you through the process from start to finish

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A mortgage broker is essentially an intermediary who acts on your behalf to arrange a home loan with the bank or lender of your choice. We work with you to understand your financial situation, and from there, we can help you choose the most affordable, flexible, and manageable home loan product for your needs. 

We consider factors such as interest rates, the life of the loan, fixed or flexible rates, whether Lenders Mortgage Insurance (LMI) is necessary, and any other fees associated with the loan, like early exit fees. 

With a mortgage broker, everything is explained upfront, so you understand exactly what you are getting into when you choose your lender. We are bound by a duty of service in Australia, so we must act in your best interest. 

We don’t charge for our services, either. Instead, we receive a commission from the lender you end up signing up with. Usually, this commission comes through an upfront payment when you settle and then a “trail commission” or ongoing payment that continues over the life of the home loan.

We’ll help you get pre-approval

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Mortgage brokers understand exactly what is involved with getting a pre-approval for your loan. We know what is required and are familiar with every step of the process because that is what we do, day after day. 

Our goal is to reduce the effort and time it can take for you to get pre-approved. This is an important step of the loan process—the faster you get it, the more time you have to search for a property and take advantage of current market conditions.

If you go it alone and apply for pre-approval straight from the lender, you may need to go through the screening and assessment software they have set up as standard procedure. This is not a flexible situation for you to explain your financial situation and give full scope to where you stand concerning eligibility. 

When you apply for pre-approval through a broker, you will get a much more accurate idea of how much you can borrow. We know all the banks’ lending policies in their panel, so it can be advantageous for us to review your finances and let you know whether you can meet the requirements.

We’ll make the most of government incentives

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If you are a first-time home buyer, there are various incentives available that you can take advantage of. A good mortgage broker will take the time to understand your situation and walk you through all the steps to apply for grants and incentives.

First Home Owner Grant 

A $10,000 First Home Owner Grant (FHOG) is available when you buy or build a brand-new home, whether it’s a house, townhouse, apartment, or unit. So long as it is newly built, purchased off-the-plan, substantially renovated, and valued under $750,000, you can apply for this financial assistance.

First Home Buyer Assistance Scheme

If you’re a first home buyer, you may be able to access a concession for transfer duty or even an exemption from paying it completely using the First Home Buyers Assistance Scheme (FHBAS).

The FHBAS is for someone who is:

• Buying a new or existing home
• Buying vacant land to build on.

The purchasing threshold varies regularly, but your mortgage broker will walk you through the thresholds as they apply to your individual situation.

First Home Guarantee

The First Home Guarantee (FHG) allows eligible first home buyers to purchase their first home with a 5% deposit and no LMI. There are various requirements for this financial incentive, including average income for singles vs couples, the value of the property you are looking to purchase, and more. Your mortgage broker will explain these thresholds and criteria to you.

Shared Equity Home Buyer Helper

The Shared Equity Home Buyer Helper is a program designed to assist eligible first home buyers with lower incomes by reducing their borrowing requirements. Under this scheme, the NSW Government contributes up to 40% of the purchase price for a new home and up to 30% for an existing home. 

This reduces the amount buyers need to borrow, leading to lower loan repayments and making homeownership more accessible.

Buyers will still need to secure a home loan for the remaining cost and meet eligibility criteria, including income limits and property price caps. A mortgage broker can help navigate the application process and determine whether this program suits your homeownership goals.

Get support from start to finish with Watson Mortgages

A mortgage broker will take you from collecting information and applying for pre-approval to the settlement date. Even with hurdles and information overload, we will ensure you understand the process from start to finish and help you avoid unwanted costs, like exit fees and unnecessarily high fixed interest rates. 

It’s worth making the most of a good mortgage broker’s wealth of knowledge and experience in the game. They may be the key to helping you grab that opportunity to buy your first home. 

For expert mortgage advice, contact the team at Watson Mortgages today. We’ll help you find a competitive rate!

Disclaimer

Watson Mortgages Pty Ltd (Nestor Ramirez Credit Representative Number 378816) is authorised under Australian Credit Licence 389328.

Watson Mortgages Pty Ltd ABN 29 642 538 967 is a separate entity to Elliot Watson Financial Planning Pty Ltd.  Elliot Watson Financial Planning Pty Ltd is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.

This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply. Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.