What Does a Mortgage Broker Do
for First Home Buyers?

What a broker does for you

A mortgage broker is an intermediary who compares home loans from multiple lenders on your behalf. For first home buyers, a broker typically helps you understand your borrowing capacity and how much you can afford, identifies which government grants and schemes you are eligible for, compares loan options from 50 or more lenders, structures your loan to minimise costs (such as avoiding LMI through the Home Guarantee Scheme), handles the application paperwork and communicates with the lender throughout the process, and explains each step along the way.

Broker vs going direct to a bank

If you go directly to a bank, you see only that bank's products. The bank's staff are employed to sell their products — they cannot recommend a competitor even if it is a better fit. A broker has no such limitation. They compare across the full market and recommend what suits your situation, not what suits a particular lender.

For first home buyers, this breadth of access is particularly valuable because lender policies on grants, low-deposit schemes, and income assessment vary significantly. The lender that gives your colleague the best deal may not be the best lender for you.

How brokers get paid

Brokers are paid a commission by the lender when your loan settles. This commission is built into the loan product regardless of whether you use a broker or go direct — so using a broker does not cost you more than going to the bank yourself. In fact, the competition created by brokers comparing multiple lenders often results in better rates for borrowers.

Read our full guide to buying your first home in Perth for the complete picture on deposits, grants, and the buying process.

Frequently asked questions