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First home buyers are overwhelmed by the home buying process and where to find trusted sources of information
Mortgage brokers key to educating more home buyers on pathways to home ownership
For many aspiring home buyers, the dream of purchasing a home may seem out of reach due to current property market prices and the substantial deposit amount usually required to secure a home loan. But savvy mortgage brokers are turning these barriers to entry into an opportunity to educate and empower aspiring home buyers to make more confident and informed decisions so they can achieve their dream of home ownership.
Introduce LMI early in discussions
A vital first step in supporting home buyers is to provide education and information on pathways to home ownership, including lenders mortgage insurance (LMI). Mortgage brokers have a key role to play in bridging the gap and providing home buyers with a clear explanation of what LMI is, whom it protects, and how it works.
By introducing LMI early in discussions, mortgage brokers can help home buyers recognise the value of LMI and the opportunity it offers to make home ownership more accessible.
Misconceptions about LMI
Among some home buyers, there are still a number of common misconceptions about LMI, including confusion about the purpose of LMI, whom it protects, and concerns about the added expense.
This is where mortgage brokers can highlight the benefits and ensure home buyers ask as many questions as possible about LMI or other aspects of the home buying process.
By providing clear and straightforward answers, mortgage brokers can ensure home buyers feel more confident in their decisions. They can also offer information about LMI providers and direct home buyers to their website for further details.
Compare all options for home ownership
Informing and educating home buyers involves presenting a well-rounded view of options appropriate to their circumstances. This can include comparing LMI to other strategies, such as saving for a larger deposit or seeking assistance from family members.
By sharing stories, case studies, examples, and testimonials of how LMI has helped others achieve their home ownership goals, mortgage brokers can enable home buyers to evaluate all their options, ensuring they make an informed decision based on their specific financial circumstances and goals.
Tools to support mortgage brokers
Helia’s award-winning Deposit Comparison Estimator tool provides insights for home buyers with less than a 20 per cent deposit. The estimator helps mortgage brokers educate their clients on the potential benefits of different options to suit individual circumstances.
Helia’s chief commercial officer Greg McAweeney said: “Our educational framework offers tools and resources to support lenders and brokers in conversations with home buyers about the appropriate pathway to home ownership for their unique circumstance.”
Educational resources at your fingertips to assist in discussions with first home buyers
The emergence of various pathways is a broader trend as first home buyers remain challenged by elevated property prices and increasing deposit gaps.
The latest Helia Spotlight (July edition 2023) found more than 36 per cent of first home buyers used lenders mortgage insurance (LMI) to buy their first home, compared to 27 per cent of first home buyers in the previous Helia Spotlight (April edition 2023).
To support mortgage brokers in conversations with first home buyers about how lenders mortgage insurance can help them get into a home sooner, Helia has developed a specific suite of resources to inform and help with discussions.
The resources include a LMI positioning guide that showcases how LMI enables home buyers to buy a home or investment property, stop paying rent, and build financial wellbeing. The series of postcards includes: what is LMI, the benefits for home buyers, LMI myth-busting, and insights to enhance your customer discussions. The resources are available on our website at www.helia.com.au.
Your expert partner in education
The Deposit Comparison Estimator and first home buyer resources are part of Helia’s ongoing commitment to home buyer education and support for mortgage brokers.
“We know from our research that aspiring home buyers feel the home buying experience can be stressful, daunting and confusing. Mortgage brokers therefore have a significant opportunity to take the lead early and play a critical role in guiding and educating home buyers on how to make the best use of their deposit through strategies such as LMI or other pathways to home ownership,” says Mr McAweeney.
Greg McAweeney
Chief Commercial Officer
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