First-time homebuyers are failing to take advantage of historically low interest rates and increased government support according to research that shows they don’t know how to get a home loan. If you are confused by the home-buying process, an experienced mortgage broker can help you with no upfront costs. Please read on for how a mortgage broker can help walk you through the process of buying your first home.

First-time homebuyers are missing out

Despite the Queensland Government’s first home owner grant and other first time buyer support (and many other governments around Australia offering similar) a survey by CoreData showed only 57% of first-time buyers said they were confident they understood the loans best suited to their needs and about 11% had “no confidence” in their ability to navigate the financing process. 

An alarming number of first-time buyers are missing out on their chance to get into the property market with their first home. Taking out a home loan is a huge financial commitment that, with the right advice from a mortgage broker, is achievable with support.

Understanding the process of getting a mortgage

If you are one of the 32% of first-time home buyers that has “minimal” confidence about the buying process, an experienced mortgage broker will walk you through the process and explain everything you need to know.

An expert mortgage broker will answer any of your questions about finance, deposits, interest rates, the approval process and choosing the right lender and home loan product for you. 

Working with a mortgage broker will take the stress out of your initial research for a home loan by explaining exactly what information you need to have available, understanding how much you can afford, what government support is available, and finding the right deal that suits your personal financial circumstances and property goals.

Getting the best home loan deal

Part of the reason surveyed first-time home buyers said they were not confident in the home loan process was knowing how to get the best deal. There are seemingly endless home loan products and more diversified lenders available in Australia than ever before. Talking directly to banks and other lenders can be a minefield of sale pitches without taking your personal situation into consideration.

Mortgage brokers are different. Mortgage brokers are in fact governed by a legal duty called the Best Interests Duty, which is a statutory obligation meaning mortgage brokers must act in the best interests of consumers and to prioritise a consumers’ interest when providing credit assistance. 

Along with the well-established reputation of mortgage brokers providing professional support tailored to your situation, this legal duty gives you the peace of mind that mortgage brokers are legally required to act in your best interests, and to put your interests first. This duty does not apply to banks and lenders directly. This only applies to mortgage brokers who provide you with an end-to-end service for your home loan process.

Finding the right mortgage according to your needs

Mortgage brokers have access to a variety of loans across a range of lenders, and an experienced mortgage broker will take the time to explain why a particular loan is being recommended to you. With an in-depth understanding of a range of products a mortgage broker will help you assess and understand why something would be suitable or not for your situation. 

Doing enough to qualify for a loan can feel overwhelming, however, a mortgage broker will take the time to explain why a particular loan is the most suitable option. They will also ensure you understand the contract you are entering into, all the features available to you, and rights and responsibilities for both the lender and the homeowner.

Whether you need redraw facilities or an offset account, want to fix your interest rate or leave it variable, or want to get a home loan with only 2% deposit, a mortgage broker can help you with all of these during the application process at no charge to you.

Information overload holding first-time homeowners back

Surveyed first-time buyers said information overload was a barrier to moving forward on getting a home loan. A quick google will show thousands of results about home loans, friends and family tend to have varying levels of understanding about the process and going directly to your bank gives you only one lender’s advice. So, who do you turn to in order to navigate the information overload?

Banks can provide information on their own products and services, however, they do not have an in-depth understanding of competitors’ products. You cannot be sure you are getting the best deal, the lowest rate, or the most suitable home loan features unless you take the time to do your own research. 

An experienced mortgage broker will help you understand what is on offer and they can match deals, interest rates and home loan feature requirements on a case by case basis.

Need help getting your first home loan?

Mortgage brokers deal with home loans every day with a vast array of lenders meaning they know the most up to date information you need to secure your first home. Coronis Finance can help you with everything you need to get approval on your home loan. Call us today to talk to a Coronis Finance mortgage specialist. You can also book online for a time to speak to one of our mortgage brokers.

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