Brokers look set to benefit from the widely-anticipated upswing in first home buyer activity according to the results of the latest MFAA/BankWest Home Finance Index.
The index found that just under half (42.2 per cent) of people surveyed under the age of 29 were likely to use a mortgage broker to secure home finance.
In addition, 31.3 per cent of first home buyers already intended to use a broker for their first home purchase.
Brokers were also ranked by first home owners as the third most important source of information for researching home loan options behind the ’internet’ and ‘own research’.
There are wide expectations that recent government incentives and a sharp decline in the cash rate will boost first home buyer activity in early 2009.
An analysis of ABS September housing figures by RP Data showed that New South Wales, Victoria, South Australia and Western Australia recorded their highest number of first home buyers since September 2001.
According to the Q4 Mortgage Business Sentiment Survey, 52 per cent of respondents expected the first home buyer sector to be most active for the coming period.
Melos Sulicich, chief executive officer of RAMS, told Mortgage Business the findings of the MFAA/BankWest Home Finance Index made sense, considering the daunting task buying a home can pose.
“First home buyers in particular are seeking simple information in a one-stop shop for convenience to understand their options and what’s required of them.
“Often brokers can assist by providing a range of options and helping first home buyers to consider their individual needs, which helps people feel more at ease with the home loan choices open to them.”
MFAA CEO Phil Naylor said the results of the index were encouraging for brokers and represented “an enormous opportunity for businesses when reviewing their marketing plans”.
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