First home buyer activity is on the rise according to one mortgage brokerage as the economy and house prices stabilise.
And with the Spring selling season just around the corner, it would appear that activity should continue to head north.
Aussie, one of the country’s largest mortgage groups, has revealed that the number of first home buyers requesting appointments with brokers via its website has more than doubled since March.
This is an interesting statistic as not only does it indicate that there is increased interest from first home buyers, they’re also increasingly looking to mortgage brokers for support to enter the market.
According to Aussie CEO Stephen Porges, first home buyers have traditionally been solid users of mortgage brokers as they offer experience and advice on finance – the two things first home buyers typically require.
While many first home buyers are happy to go directly to lender for their home loan, many do find a mortgage broker a major asset not only in securing finance but also managing their debt, and wealth building, in the long term.
A mortgage broker’s key role is to help borrowers identify and secure the right home loan for their needs. With literally thousands of mortgage products on the market, for many borrowers their service can mean the difference between whether or not they actually secure a mortgage. This especially holds true for borrowers with circumstances that are not seen as 'mainstream' by lenders, like contract workers or the self-employed.
They can save borrowers a lot of time shopping around; if you’re confused about your options they can also help you make sense of all the terms, conditions and jargon.
In addition they’ll lodge your application and deal with the lender during the approval process. Importantly most mortgage brokers will offer you their services free of charge as the lenders pay them a commission on the eventual home loan product you choose.
If you’re looking for someone to help you through your first borrowing experience it's worthwhile speaking with a broker. But don’t forget to do your homework as brokers differ across the board.
Ask family and friends for their recommendations. Also visit the www.mfaa.com.au to search for brokers that are members of the Mortgage and Finance Association of Australia (MFAA), the industry body.