Masterclass brings first home buyers closer to their dream

First Home Buyer Buddy recently concluded a successful First Home Buyers Masterclass in Queensland and, just like its initial run in Melbourne last November, it revealed that people wanting to get into their first home are hungry for knowledge and they need mortgage brokers more than ever.     

Organised by real estate agency First Home Buyer Buddy, the masterclass series aims to equip first home buyers to become confident in making one of the most significant financial decisions of their life.  

First Home Buyer co-founder Daniel Baxter, with his wife and business partner Lisa, and Inspired Living Finance mortgage broker Toni Lamb, came up with a module which guides attendees throughout the home-ownership process, from avoiding common home-buying mistakes and learning how banks calculate loans to becoming familiar with property terms.

Saving: the biggest challenge
In speaking to MPA, Baxter said saving for a deposit is always the biggest hurdle for most first home buyers. It feels impossible at times, especially for those paying rent while meeting other living expenses.    

“Many first home buyers are under the impression that they need to have a 20% deposit because that's what they hear from the big banks,” he added. “This is certainly not the case with many available options that will get them into their first home much sooner. Many lenders have competitive options requiring just a 5% deposit, some even less.”

The thought of disclosing their finances is also an obstacle for many first home buyers. In some sense, they look at it as revealing their financial situation’s deepest, darkest secrets. “The first step is always the finance, but once first home buyers have that in order, they can get laser-focused on their budget and the type of property that fits it.”

Finding the right broker
According to Baxter, the role of brokers in the lives of first home buyers has become more important as lending tightened over the last 12 to 18 months. First home buyers who can access multiple financing options via their broker can navigate their way through the home loan approval process. Without a broker’s support, expertise and guidance, many first home buyers, particularly those who don’t fit the big four’s criteria, “would never achieve the great Australian dream”.

First home buyers need to find a broker whose time and energy are concentrated on helping the market segment. One of the easiest ways to find one, Baxter suggests, is to ask the mortgage broker the number of first home buyers he or she generally works with each month. If it’s just one or two here and there, then the broker may not be giving the market sector much attention.

“The quicker a first home buyer sees a finance professional, particularly a mortgage broker because he or she can provide the most options, the easier and less confusing the road to home ownership will be,” Baxter said.