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New research from the lenders mortgage insurance provider suggests more first home buyers are turning to the broker channel.
First home buyers are increasingly turning to mortgage brokers for guidance in navigating a challenging property market, according to the new research from lenders mortgage insurance (LMI) provider Helia.
Released on Wednesday (30 April), the latest Helia Spotlight home buyer sentiment survey showed almost two-thirds (62 per cent) of first home buyers used a mortgage broker to get onto the property ladder, compared to just over half (56 per cent) in last year’s survey.
The survey – conducted by market research consultancy CoreData between February and March 2025 – comprised responses from 500 prospective first home buyers and 500 recent first home buyers.
Almost half (48 per cent) of the first home buyer respondents said ‘experience and knowledge’ were their primary reasons for choosing a broker (up from 36 per cent in 2024), with ‘ability to access better deals’, ‘ease of application process’, and ‘stress reduction plus recommendations by friends and family’ among other leading reasons cited.
Greg McAweeney, Helia’s chief commercial officer, said the results showed broker expertise is increasingly valued in today’s property market.
“Mortgage brokers play a crucial role in educating home buyers on their options,” McAweeney said.
“They help home buyers understand the benefits and trade-offs of different pathways, empowering them to make informed decisions that align with their financial circumstances.”
Challenges and resilience
The research also provided insight into the affordability challenges facing first home buyers, particularly in clearing the deposit hurdle.
More than three-quarters (77 per cent) of the aspiring home buyers surveyed said they were unable to save a traditional 20 per cent deposit, according to Helia, with almost one in four (24 per cent) unable to save at all.
However, the data also showed the willingness of first home buyers to explore less traditional options, with 80 per cent of respondents saying they are considering using LMI to get onto the property ladder.
Home buyers under the age of 30 were more likely to consider LMI (86 per cent) than those over 30 (73 per cent).
Meanwhile, almost half (48 per cent) of the recent first home buyers in the survey said they had used LMI to achieve home ownership.
More than a third (35 per cent) of recent home buyers said they had received financial assistance from their family, while only 27 per cent said they had purchased their property with a 20 per cent deposit.
Andrew Inwood, CoreData CEO, said the research also reflected a sense of resilience and adaptability among today’s first home buyers.
“Despite financial pressures, first home buyers are actively finding solutions to achieve home ownership,” Inwood said.
“The 2025 Helia Spotlight shows a clear shift – first home buyers are focusing on financial stability and strategic decision-making rather than simply relying on traditional saving methods.”
Meanwhile, McAweeney said it is important for borrowers who can’t rely on their family for assistance to have access to alternative pathways.
“Lenders mortgage insurance allows home buyers to enter the property market with as little as a 5 per cent deposit, helping them secure a home sooner and start building equity,” McAweeney said.
“With the Bank of Mum and Dad [BOMAD] not always an option, LMI is proving a vital solution for aspiring home buyers.”
Stepping onto the ladder
In a recent appearance on The Adviser’s In Focus podcast, McAweeney spoke about the use of LMI in today’s market and the value it can provide to borrowers and brokers in the right circumstances.
“The great thing about LMI is it gives you the opportunity to get out of this trap of ‘I can’t save enough for a deposit’. You can be quite forlorn if you know you’re never going to get 20 per cent and you don’t have BOMAD to bail you out. LMI bridges that gap for you,” McAweeney said.
“I think it’s really optimistic for home buyers to have an option for them because prices keep rising, the gap’s getting bigger.
“So, you don’t want to keep paying dead money in rent. LMI provides that pathway for you. I see LMI really as an investment and not a cost.”
To listen to the full episode, click here.
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