Buying a first home is exciting, but the loan process can feel overwhelming. With so many lenders, loan types, and government incentives, it’s easy to get lost in the details.
A mortgage broker can simplify the process—helping buyers compare loans, understand terms, and improve their chances of securing approval with confidence.
In this guide, Unconditional Finance breaks down how mortgage brokers assist first-home buyers, explores available loan options, and outlines what to expect at each step.
What Does a Mortgage Broker Do for First-Home Buyers?
A mortgage broker for first-home buyers acts as a guide through the home loan process, handling everything from loan comparisons to paperwork. Rather than applying to banks individually—which can be time-consuming and overwhelming—a broker helps identify suitable loan options, negotiate rates, and simplify the approval process.
Here’s how mortgage brokers assist first-home buyers:
1. How Mortgage Brokers Help You Understand Your Borrowing Power
Before house hunting, it’s essential to know how much you can afford to borrow. Lenders assess affordability based on the following:
- Income & employment type – Full-time, casual, or self-employed
- Credit score & financial history – How lenders view your past borrowing behaviour
- Savings & deposit size – How much you’ve saved for a deposit and whether it qualifies for first-home buyer schemes
- Existing debts & expenses – Credit cards, car loans, or HECS/HELP debts
Understanding these factors can help you have a clearer idea of what to expect and may increase the chances of getting your loan approved.
2. How Brokers Compare & Find the Right Home Loan for You
Not all home loans are the same. Each lender has different rules. Mortgage brokers for first-home buyers compare loans from credit unions, banks and non-bank lenders to find a suitable loan based on factors like:
- Fixed vs. variable interest rates – Stability vs. flexibility in repayments
- Loan features – Offset accounts, redraw facilities, and extra repayment options
- Fees & hidden costs – Annual fees, early repayment fees, and other charges
Rather than focusing solely on the lowest interest rate, brokers assess the entire loan structure to determine its suitability for the borrower’s long-term financial situation.
3. Maximising Government Incentives With a Mortgage Broker
If you’re a first-home buyer in Australia, you may be eligible for government incentives that could reduce your upfront costs. These include:
- First Home Owner Grant (FHOG) – A one-time grant (varies by state) for new or substantially renovated homes
- First Home Guarantee (FHBG) – Allows purchases with just a 5% deposit, avoiding Lenders Mortgage Insurance (LMI)
- Stamp Duty Concessions – Some states reduce or waive stamp duty, potentially saving thousands
- First Home Super Saver Scheme (FHSSS) – Enables withdrawals from voluntary super contributions to use as a home deposit
Mortgage brokers assist in navigating these schemes, helping eligible buyers understand and access potential benefits.
4. How Mortgage Brokers Simplify the Loan Application Process
The home loan application process involves extensive paperwork, but mortgage brokers help simplify it by:
- Gathering required documents – Payslips, tax returns, bank statements, ID, and more
- Submitting the loan application – Ensuring it meets lender requirements
- Following up with lenders – Keeping the process moving smoothly
- Explaining loan terms & conditions – So you know exactly what you’re signing up for
This approach may help reduce stress and increase the likelihood of loan approval.
Common Misconceptions About Mortgage Brokers
There are many myths about using a mortgage broker. Here’s the truth behind some of the most common misconceptions:
✘ “Brokers are biased toward certain lenders.”
Not true! Mortgage brokers must follow the Best Interests Duty (BID), meaning they are legally required to prioritise the borrower’s needs over lender commissions.
Brokers compare multiple lenders, helping borrowers explore a range of loan options beyond those offered by a single bank. Transparency around commissions is always encouraged—if unsure, just ask.
✘ “I can get a better deal by going directly to the bank.”
While it’s possible for banks to offer direct promotions, mortgage brokers may be able to secure more competitive deals due to their relationships with multiple lenders.
Brokers:
- Can access to exclusive offers and discounts that may not be publicly available.
- Work with lenders on your behalf to help secure lower interest rates or reduce certain fees.
- Compare multiple lenders, rather than limiting you to one bank’s loan products.
Even if you already have a preferred bank, working with a broker allows you to compare your options and ensure you’re getting the most competitive loan available.
✘ “Brokers charge high fees.”
Most mortgage brokers don’t charge borrowers directly—instead, they are paid a commission by the lender upon loan settlement.
However, there are some cases where a broker may charge a fee—such as if you need specialised loan services (e.g., complex self-employed applications or non-standard lending). A trustworthy broker will always disclose any fees upfront, so there are no surprises.
If you’re concerned about costs, simply ask your broker for a breakdown of how they get paid—a good broker will always be transparent.
✘ “Using a broker will hurt my credit score.”
Not at all! A mortgage broker’s initial assessment does not typically impact a borrower’s credit score.
When a broker assesses your borrowing power, they typically perform a soft check on your financial situation. This does not leave a mark on your credit report.
However, multiple formal loan applications in a short period can affect your score. This is why brokers help you strategically apply with the most suitable lender first, instead of submitting applications randomly to multiple banks.
✘ “Brokers only help people with good credit scores.”
Brokers assist all types of borrowers, including those with lower credit scores or non-traditional incomes.
If your credit score isn’t high or you’re self-employed, a mortgage broker can:
- Identify lenders who are more flexible with credit history requirements.
- Help you improve your financial profile before applying.
- Recommend strategies such as adding a guarantor or saving a larger deposit to increase your approval chances.
Even if a borrower does not qualify for a standard loan now, a broker may provide guidance on improving financial standing to increase future loan eligibility.
✘ “A broker’s job ends once the loan is approved.”
A good broker provides ongoing support—even after you’ve settled your home loan.
Many brokers continue to assist clients by:
- Monitoring interest rates and advising when it might be beneficial to refinance.
- Helping with loan restructuring if your financial situation changes.
- Providing guidance on making extra repayments, using offset accounts, or accessing equity in the future.
Your broker is a long-term partner in your homeownership journey, not just someone who helps with loan approval.
How to Choose the Right Mortgage Broker
Not all mortgage brokers offer the same level of service, so it’s important to choose one who fits your needs as a first-home buyer. Here are some key factors to consider:
- Accreditation & Licensing – Must be registered with MFAA or FBAA and hold an Australian Credit Licence
- Lender Panel – A broader lender panel means more options
- Transparency – A good broker clearly explains loan options, commissions, and potential fees upfront
- Experience with First-Home Buyers – Understanding government grants and schemes is crucial
Key Questions to Ask Before Selecting a Mortgage Broker
To help you decide if a mortgage broker is the right fit, here are some key questions you should ask:
- How many lenders do you work with? – More lenders = more loan options
- Do you charge any fees? – Most don’t, but always confirm upfront
- What’s your experience with first-home buyers? – Not all brokers specialise in this area
- How do you decide which lender is best for me? – The answer should be tailored to your financial situation, not commissions
- Will you assist after loan approval? – Some brokers offer ongoing support
By asking these questions, borrowers can identify a broker who is knowledgeable, transparent, and committed to helping them find a suitable home loan.
Final Thoughts: Should You Use a Mortgage Broker?
Buying your first home is a big financial decision, and navigating the home loan process can feel overwhelming. But with the right mortgage broker by your side, you don’t have to figure it out alone.
A mortgage broker can simplify the process, compare multiple lenders, and assist in accessing government incentives—all while helping borrowers explore a suitable home loan for their financial situation.
If you want to save time, avoid common pitfalls, and secure a competitive home loan, working with a broker could be one of the best decisions you make as a first-home buyer.
Ready to take the next step toward homeownership? Whether you’re just starting or need expert guidance, we’re here to help!
Frequently Asked Questions (FAQs)
Great question! When applying directly to a bank, borrowers are typically offered only that bank’s home loan products, which may limit their options. As mortgage brokers, we compare multiple lenders (including big banks, credit unions, and non-bank lenders) to find the most competitive loan for your situation.
A mortgage broker might be able to find lower interest rates or better loan features than those available when applying directly with a bank. Plus, we handle all the paperwork and liaise with lenders, saving you time and effort.
Absolutely! Many first-home buyers worry that they haven’t saved enough, but there are options available. We can help you explore:
- First Home Guarantee (FHBG) – This allows eligible buyers to purchase with just a 5% deposit without paying Lenders Mortgage Insurance (LMI).
- Lenders with lower deposit requirements – Some lenders accept as little as a 5% deposit, depending on your financial situation.
- Family guarantee loans – If a family member is willing to use their home equity as security, you may be able to borrow with no deposit at all.
A broker can review a borrower’s financial situation and explore loan options suited to their deposit size and repayment capacity.
Not at all! While having a good credit score helps, we work with lenders who offer home loans to borrowers with different credit histories.
If your credit score isn’t perfect, we can:
- Find lenders that are more flexible with credit requirements
- Advise on ways to improve your score before applying
- Help structure your application to increase your chances of approval
If you're worried about your credit score, let’s chat— we can assess your situation and guide you toward the best options.
It depends on the lender, but generally:
- Pre-approval: 2–7 days
- Formal approval: 1–3 weeks, depending on lender processing times and application complexity
A well-prepared application may help speed up the process, and some lenders offer faster turnaround times.
If you’re in a hurry, let us know! We can work with lenders who offer faster turnaround times.
In most cases, you don’t pay us directly—our services are free to you because we get a commission from the lender when your loan is settled.
However, we always act in your best interest, and we’re legally required to recommend a loan that suits your financial situation, not the one that pays us the most.
If there are any fees involved (which is rare), we’ll always disclose them upfront, so there are no surprises.
