Helia launches educational video for first-home buyers trying to overcome deposit challenges
The role of mortgage brokers in helping first-home buyers navigate affordability challenges through lender’s mortgage insurance (LMI) is the highlight of Helia’s new educational video featuring the story of a young couple.
The video, titled “Start Your Home Story,” follows the real-life journey of Mitch and Amelia, who were struggling to save a 20% deposit while trapped in a cycle of renting.
The couple describe their frustrations with the high cost of living and the difficulty of saving while making lifestyle sacrifices. Despite their efforts, Mitch and Amelia faced a series of unsuccessful auction bids and were not eligible for the government’s First Home Guarantee Scheme. In the video, Mitch shares how disheartening it felt to keep cutting back on expenses with no end in sight.
Helia’s latest Home Buyer Sentiment Report underscores the couple’s experience, revealing that 85% of prospective home buyers find it increasingly challenging to save for a 20% deposit. Only 15% of first-home buyers feel confident about reaching that target, a trend largely driven by rising living costs.
Determined to break out of renting, Mitch and Amelia sought the guidance of a mortgage broker, who introduced them to LMI as an alternative pathway to home ownership. With the help of LMI, the couple was able to purchase a home that meets their growing family’s needs.
Mortgage broker Peter Kennedy, director of Peter Kennedy Consulting, appears in the video to discuss how brokers play a critical role in educating buyers about options beyond the traditional 20% deposit.
“As we see with Mitch, without a proper awareness of the options available, aspiring home buyers may believe that the only option they have if they don’t qualify for government schemes is to delay buying and continue trying to save for a bigger deposit,” said Greg McAweeney, chief commercial officer at Helia.
“Mortgage brokers are key in bridging this information gap and helping home buyers understand the different home ownership pathways available to them, which could see them get into the market sooner.
“In a housing market where saving a 20% deposit feels increasingly out of reach for home buyers, this video offers a fresh perspective. It showcases the growing number of home buyers like Mitch and Amelia who are successfully finding other pathways, like LMI, to make their home ownership dreams a reality.”
Since 2010, LMI has allowed more than 1.2 million Australians to access the housing market sooner than if they had waited to save a traditional 20% deposit. In 2023 alone, Helia provided LMI support to 42,641 home buyers and approved 9,064 hardship requests, helping borrowers stay in their homes through loan deferrals and restructures.
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