Buying your first home is exciting… and a bit overwhelming. There’s new jargon to learn, a mountain of paperwork, and a lot riding on one big decision: how you’re going to finance it.
Plenty of first home buyers still walk straight into their usual bank and start the process there. But a growing number are choosing to work with mortgage brokers instead. The reasons are usually practical, not glamorous: access to more options, someone to explain how banks think, and help getting your application over the line.
Here’s a look at why so many first home buyers lean on brokers, and what that actually means for you.
One Bank vs Many Lenders
When you go directly to a bank, you’re talking to one lender with one set of products. That can work if:
- Your situation is straightforward, and
- You’re happy with whatever that bank can offer.
A mortgage broker, on the other hand, works with a panel of banks and non-bank lenders. That doesn’t mean every lender in the country, but usually enough to give you genuine choice.
For first home buyers, that matters because:
- Different lenders have different appetites for things like variable income, short employment history, or small deposits.
- Some lenders are stricter about credit issues than others.
- Product features (offset accounts, cashbacks, construction loans, etc.) can vary widely.
Instead of you booking back-to-back appointments and repeating your life story to several banks, a broker can look at your situation once, then match it to lenders whose policies are more likely to fit.
Translating Bank Speak Into Real Life
Lenders care about risk. But they talk about that risk using their own language: serviceability ratios, loan-to-value ratios (LVR), shading of income, debt-to-income (DTI) limits, and so on.
If you’re new to the game, it can be hard to know:
- Why one bank is nervous about your application when another seems relaxed
- Whether a “computer says no” outcome is final or just a policy mismatch
- How your spending habits and debts really look from a lender’s point of view
A good mortgage broker is, essentially, a translator. They can:
- Explain how lenders calculate what you can borrow
- Point out which parts of your situation are strengths – and which are red flags
- Suggest realistic steps if you’re not quite ready yet (e.g. paying down specific debts, improving your savings pattern)
For first home buyers, this guidance is often the difference between feeling rejected by the bank and realising, “Okay, I just need to tweak a few things and try a lender whose rules actually fit me.”
Help With the Paperwork (So You Don’t Miss Something Important)
First home buyers are often surprised by how much documentation is required, especially if:
- You’re self-employed or work as a contractor
- You have multiple jobs or variable income (overtime, bonuses, commission)
- You’ve moved around or lived overseas recently
A broker won’t magically make the paperwork disappear – but they can:
- Tell you exactly what you’ll need up front for each type of lender
- Show you how to present your income, debts and savings clearly
- Spot gaps or inconsistencies before they land on a credit assessor’s desk
That matters because lenders like clean, complete applications. Missing documents and unclear information slow things down and can increase the chance of a “no” simply because the picture isn’t clear.
Think of your broker as both a checklist and a proof-reader for one of the most important applications you’ll ever submit.
Comparing Rates and Features, Not Just Headline Numbers
It’s tempting to focus only on the interest rate. But as any homeowner learns, the “cheapest” looking loan isn’t always the most suitable.
Mortgage brokers can help you compare:
- Fixed vs variable vs split arrangements
- Different loan terms and how they affect your repayments and total interest
- Features like offset accounts, redraw facilities, repayment holidays, extra repayment flexibility, and break fee rules
Because brokers regularly see how different lenders behave in the real world, they can also give you context like:
- Which lenders tend to be more responsive when circumstances change
- Who is generally easier to deal with for future top-ups or refixes
- Where people run into frustrations after the honeymoon period
They can’t predict the future, and they’re not there to tell you what to do, but they can lay out pros and cons in a way that’s easier to weigh up.
Support When Things Don’t Fit the Perfect Box
Not every first home buyer fits the textbook profile of:
Long-term salaried job + big deposit + spotless credit history.
Real life includes:
- Recently self-employed people
- Complex income histories from freelance work
- Small business owners reinvesting profits
- Buyers with a minor credit hiccup in the past or those who frequently use buy now pay later forms of credit
Banks have to operate within strict rules and risk appetites. Some are more flexible for certain scenarios, others less so.
Brokers deal with a wide range of applications every week, so they often know:
- Which lenders are more open to non-standard situations
- Where a strong overall story can offset one or two weaker points
- When it’s better to wait and tidy things up rather than push an application through now
That doesn’t mean they can “bend the rules,” but they can aim you at the right rules for your situation, rather than you running into the same wall over and over.
How Mortgage Brokers Get Paid – And Why That Matters
Most mortgage brokers are paid by the lender via a commission when your loan settles. In many cases, you don’t pay them directly for their core service (though some may charge fees in specific circumstances – they should always disclose this clearly).
For first home buyers, that’s appealing: you get guidance without a big upfront adviser bill.
At the same time, it’s worth understanding:
- Brokers may have a panel of preferred lenders rather than absolutely every lender on the market.
- They’re required to follow regulations and act in your interests, but it’s still smart for you to ask questions and compare options.
- A good broker will be transparent about how they’re paid and what lenders they work with.
If you treat a broker as a partner and guide, not a magic shortcut, you’ll get the most value out of the relationship.
Is Going Direct to the Bank Ever Better?
Sometimes, yes. For example:
- If you have an extremely long, positive relationship with a particular bank and they’re offering you a strong deal
- If your situation is very simple and you’re happy doing the research and paperwork yourself
- If you prefer to keep everything with one institution for personal reasons
Using a broker doesn’t lock you out of going direct, and going direct doesn’t stop you using a broker later. Many buyers actually do a bit of both: they talk to their usual bank and a broker, then decide which route feels clearer and more competitive.
Final Thoughts (And a Quick Disclaimer)
Many first home buyers might be worried about using a mortgage broker, but think of them as your guide while you navigate what is unfamiliar territory for you. Access to multiple lenders, a clearer understanding of lending criteria, help with paperwork, and support through the process can make an intimidating milestone feel a lot more manageable.
That said, this is general information, not personal financial advice. Your situation, goals and risk tolerance are unique. Whether you go through a broker, a bank, or a mix of both, the most important thing is that you understand your options, ask questions, and feel confident about the commitment you’re making when you sign on the dotted line.