Brokers a ‘source of confidence’ for home buyers

Lenders mortgage insurance (LMI) provider Helia has revealed in its Home Buyer Sentiment Report 2024 that home buyers (particularly first home buyers) have expressed a need for support through the home-buying process, with mortgage brokers playing a crucial role.

The report was prepared by CoreData on behalf of Helia during August 2024 and collected responses from 1,965 first home buyers (FHB) and 1,037 current property owners.

According to the report, more than half of FHBs indicated the lack of familiarity and support to navigate the home-buying process.

It found that around 57 per cent of home buyers needed support in researching properties, understanding affordability and financing, determining borrowing capacity and researching loan availability.

Respondents indicated that online research was the main way they sought out reliable and trusted information about buying property and meeting with experts such as mortgage brokers or accountants came in as a close second (70 per cent and 69 per cent, respectively).

According to Helia, this highlighted the “unique role” that brokers play as educators, while providing the support buyers need during their pursuit of home ownership.

Forty-five per cent of first home buyers said they found it difficult to research which loans are best for them, while 52 per cent anticipated challenges in getting the loan they need.

Furthermore, the report emphasised the opportunity for mortgage brokers to play a key role in the home-buying process as 91 per cent of FHB respondents said they are likely to use a broker to obtain a loan for their property.

The findings showed that respondents agreed that brokers can help them understand individual financial situations and borrowing capacities (89 per cent), provide support and guidance (88 per cent) and help them save time, effort and gain better access to deals (86 per cent).

Helia noted that a large proportion of home buyers planned to buy individually (38 per cent) as opposed to taking out a loan with their partner (53 per cent), while 10 per cent of FHBs said they planned on borrowing from family members.

Due to this indicating a shift in the landscape of home ownership, Helia stated that mortgage brokers will need to tailor their services to diverse types of clients with unique circumstances, wants and needs.

[RELATED: Aussies pocketed record profits from home sales]

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.