Majority of FHBs purchased through a broker, research finds

Lenders mortgage insurance (LMI) provider Helia has revealed that 56 per cent (three in five) of first home buyers (FHBs) surveyed purchased their property through a mortgage broker.

The research – titled 2024 Helia Spotlight – was based on research commissioned by Helia and conducted by research agency CoreData of 1,015 home buyers around Australia to examine their attitudes, behaviours, and outlook in regard to home ownership.

According to the research, the primary reasons indicated by FHBs for using a mortgage broker were the ability to access better deals (45 per cent), ease of application (41 per cent), reduced stress (39 per cent), and the brokers’ experience and knowledge (36 per cent).

Commenting on the research, Helia’s chief commercial officer Greg McAweeney said: “As a first point of contact for many aspiring home buyers, mortgage brokers have a unique and vital role to play in supporting, guiding, and educating more people on the pathways to home ownership.

“With an increasingly challenging property market, mortgage brokers can unlock unique ways buyers may not have considered previously.”

The Spotlight research also revealed that sentiment among home buyers was a “mix of optimism and concern”.

While home buyers still expressed a strong desire to own a property, respondents indicated that they are finding it increasingly difficult to save for a deposit, with 88 per cent feeling it’s more difficult, while 89 per cent of FHBs agreed it was harder than ever to buy their first property.

As such, FHBs have been exploring alternative pathways in order to enter the property market, according to Helia.

The Helia Spotlight found that nine in 10 FHBs said they were considering using LMI to purchase their home (92 per cent, up from 73 per cent in 2023), while 55 per cent of purchasers (up from 36 per cent) used LMI to buy their property.

McAweeney said: “LMI is an alternative pathway to achieve home ownership for buyers without a 20 per cent deposit.

“LMI enables buyers to enter the property market, consider buying a larger home and, ultimately, start building equity sooner.

“It’s heartening to see in our research that most prospective buyers are showing resilience in the face of the current market challenges and researching alternative ways to achieve their home ownership dreams.”

Furthermore, the research found that 45 per cent of FHBs were likely to access the “bank of mum and dad” for their first purchase, while 48 per cent of home buyers planned on using government assistance schemes. However, only a third of recent home buyers used these schemes, likely due to eligibility restrictions.

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Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.