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Nine in 10 first home buyers are likely to use a mortgage broker to obtain a loan for their property, according to new research from Helia.
Lenders mortgage insurance (LMI) provider Helia has released new research showing that while first home buyers (FHBs) are increasingly worried about how the cost of living is impacting the ability to purchase a home, 71 per cent of home buyers believe that now is a good time to buy and the vast majority would use a broker to access finance for their purchase.
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The 2024 Helia Home Buyer Sentiment Report – which is based on a survey of 3,002 home buyers conducted by research agency CoreData in August – revealed that many home buyers need support through the home buying journey.
According to the Helia report, more than half of FHBs said they lacked familiarity and needed support to successfully navigate the complex home buying process, particularly when it came to researching and understanding options (57 per cent); understanding affordability; and navigating the financial aspects such as savings, deposit options, borrowing capacities, and loan availability.
Almost half (45 per cent) of first home buyers said they found it difficult to research which loans were best for them and over half (52 per cent) anticipated challenges in obtaining the loan they need.
While online research was the main way FHBs sought to access reliable and trusted information, meeting with experts like mortgage brokers or accountants was nearly on a par, at 70 per cent and 69 per cent, respectively. Given the challenges, 91 per cent of FHBs said they were likely to use a mortgage broker to obtain a loan for their property.
When asked for their thoughts on brokers, 89 per cent of FHBs agreed that mortgage brokers help home buyers understand their individual financial situations and borrowing capacities.
Other positive sentiments that home buyers had towards brokers included that they “provide valuable support, guidance and expertise throughout the complex journey” (88 per cent) and that they “save time, effort, and can access better deals” (86 per cent).
The report said: “Mortgage brokers play an essential role in providing education, support and guidance to home buyers navigating the complex and often stressful process of purchasing a home. The majority of home buyers indicate they are likely to use a broker, reinforced by the perception that mortgage brokers bring valuable expertise, and importantly save time, effort, and have better negotiating power to access better deals for home buyers.”
Greg McAweeney, chief commercial officer at Helia, said: “Understanding buying limits is crucial in the home buying process. Research is a pivotal part of the process and mortgage brokers play an essential role in helping home buyers find the best options to achieve their home ownership without feeling overwhelmed.”
According to the 2024 Helia Home Buyer Sentiment Report, around half of home buyers plan to take out a mortgage jointly with their partner (53 per cent) while 38 per cent said they would do so on their own.
Around 10 per cent of people said they would borrow together with family members (parents, grandparents, or siblings).
The Helia report also revealed that more borrowers think ‘now is a good time to purchase property’, with 71 per cent saying so, a rise on the 63 per cent in 2023 and 57 per cent in 2022, despite interest rates and house prices having risen since then.
Noting the findings, Melbourne-based broker Peter Kennedy from Alecto Finance said: “Confidence is the key to any market movement. People have been holding back and when rates fall, I feel we will see demand rise. As a property advocate, I always say buy when you can, buy wisely, hold that property and utilise its growth over time. When things are buoyant then people don’t want to miss out.”
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