As a first home buyer, do you sometimes feel like you’re a little out of your depth? If so, you’re not alone. Based on a recent survey, over 30% of first home buyers admitted to having little confidence in their ability to successfully identify and apply for the right home loan, while a further 11% said they had no confidence whatsoever.
In fact, 70% of surveyed first home buyers said they’d like more support when it came to making these crucial financial decisions.
Can the banks help first home buyers?
If you’re new to the world of home loans, you may be tempted to start with your bank – after all, you’re already a customer. But going directly to a bank for a mortgage will severely limit your choices.
While you may find that you qualify for an affordable home loan, you won’t necessarily be getting the best home loan product to suit your needs.
Additionally, banks are not bound by the recently introduced ‘Best Interests Duty’ legislation. This means that their staff are not required to act in your best interests and can instead recommend products that will deliver the best possible results for the bank, not for you.
Can I trust a mortgage broker?
Yes, you can. Rest assured, mortgage brokers are firmly on your side. Mortgage brokers are governed by ‘Best Interests Duty’, so they are required by law to act in your best interests.
This doesn’t just mean finding you the lowest interest rate – it means taking the time to fully understand your financial situation, doing the necessary research and comparisons, and then recommending a mortgage product that will best suit your needs.
What are the benefits of using a mortgage broker as a first home buyer?
There are many benefits for first home buyers who choose to partner with a mortgage broker. These include:
Access to a wide range of products:
Your mortgage broker will have access to deals from all the major lenders, as well as many smaller lenders that you may not even have heard of. They will also be aware of any available special deals or limited offers that lenders aren’t presenting on the retail market.
Saving time and reducing stress
A broker will take care of all the necessary research and comparisons for you. This not only saves you hours of tedious homework, but it also gives you peace of mind that you’re going to get the best possible outcome.
Brokers have a wealth of industry experience that can be highly beneficial for first home buyers. This includes an understanding of which lenders will be most favorable towards your particular application and what features will be most useful to you.
Protect your credit score
While it is possible to apply to a different lender should your first application be rejected, lodging multiple applications in a short space of time can be damaging to your credit score. Working with a mortgage broker ensures that you have the best possible chances of having your first application approved.
Getting the right result
A broker won’t just present you with the lowest interest rate – they’ll compare fees and charges, terms and conditions, and what kind of features each lender is offering. This will help you to get the best possible result for you and your family.
Gone are the days when first home buyers had to rely on the bank, or themselves, to get a home loan.
To find out more about how a broker can help you achieve your goal of owning your own home, contact the experienced team at Professional Lending Solutions today.