With house prices tipped to rise by as much as 17% this year, first home buyers are sure to feel the pressure of FOMO weighing heavily upon their dreams of home ownership. AFG state sales manager for NSW and ACT David Vizza believes brokers are well-positioned to handle the challenges in the communities they serve, making them “the preferred choice among Australians when it comes to sourcing funding.” He shared the following broker tips for helping first home buyers crack the market.
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It is crucial that a broker is well-informed and up to date with all the current stimulus packages and government concessions in the market, said Vizza.
“Self-education sits at number one,” he explained. “I think that’s the most imperative step for all brokers, to understand the various government stimulus packages, the grants, the schemes and the incentives that are available to them by way of supporting first home buyers within their respective states.”
By keeping informed, a broker is able to act as a trusted source of information and assist their first home buyer clients to take advantage of any incentives or concessions available to them.
Know your product
Similarly, having a thorough knowledge of any lending policies or incentives that may be considered favourable for first home buyers will go a long way in assisting FHB clients while positioning the broker as a trusted adviser.
“For example, there is one specific lender at the moment where a first home buyer can go up to 85% and the LMI component sits at $1,” said Vizza. “That’s a great incentive for a lender to be offering that type of policy for a customer and also helping them get into the market.”
He also pointed to the willingness of some lenders to provide family pledge or guarantor loans depending on the borrower’s situation.
“Not all banks tend to play in that space, but the ones that do tend to do it quite well,” he said.
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Utilise your network
There is often a lot of emotion involved when buying a property – especially if it is the first time. Vizza said brokers could potentially help their clients deal with some of the stress involved by connecting them with the right professionals.
“When a first home buyer is looking to buy a property, they can be quite overwhelmed,” he said. “Brokers could connect that buyer to a buyer’s agent in order to handle the negotiations and remove some of the emotion out of the transaction.”
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