First Home Buyer? What Your Bank Won't Tell You

Sound Familiar? Most First Home Buyers Think This Way.

According to MFAA research, the majority of first-time buyers enter the market with assumptions that can reduce their borrowing power, limit their options, and cost them more over the life of the loan.

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"All banks are the same. If my bank rejects me, no one else will approve me either."

Believed by 1 in 3 first-time applicants — MFAA 2024

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"I just need the lowest interest rate. That's all that matters."

67% of buyers focus only on rate — Canstar Survey 2024

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"My bank will look after me. I've been with them since I was a kid."

Only 22% of existing customers receive their bank's most competitive rate — RBA Data 2024

If you nodded at any of these — keep reading. The truth may surprise you.

Let's Set the Record Straight

These aren't opinions — they're facts backed by industry data. Understanding them could be the difference between securing your dream home and missing out.

❌ Myth "All banks are the same — if one rejects me, all will."

✅ Truth Every lender has completely different policies.

A home loan is nothing like buying a car, a phone, or a pair of shoes. When you buy a product from a shop, the business doesn't get to choose its customers — if you can pay, you can buy.

Banks are different. Every lender has their own lending policy that determines who they want to do business with. They assess income differently, accept different types of employment, have different views on property types, and evaluate risk in their own way.

This means a rejection from one lender says nothing about your chances with another. In fact, according to the Mortgage & Finance Association of Australia (MFAA), brokers regularly help clients who were initially declined by one lender secure approval with a different one — sometimes at a better rate.

Example: One major bank may decline a self-employed applicant with 2 years of tax returns, while another lender actively seeks these borrowers and approves them within days. Same person, same financials — completely different outcome.

❌ Myth "The lowest interest rate is all that matters."

✅ Truth Interest rate is just one part of the total cost.

Young buyers especially love comparing rates — and rates do matter. But the headline rate is only one piece of the puzzle. The total cost of a loan includes:

• Application fees — Some lenders charge up to $600, others charge nothing.
• Annual/ongoing fees — These compound over 30 years and can add thousands.
• Exit or discharge fees — Charged when you refinance or sell.
• Offset account availability — A functional offset can save more than a lower rate.
• Redraw restrictions — Some lenders make it difficult to access extra repayments.
• Rate lock policies — Critical in a rising rate environment.

An experienced broker analyses all of these factors across 30+ lenders to identify the loan that genuinely costs you the least — not just the one with the prettiest number on the website.

❌ Myth "My bank will look after me — I've been loyal since childhood."

✅ Truth Banks define "loyalty" very differently from you.

Your definition of loyalty: "I've been with this bank for 15 years. They know me. They'll give me a good deal."

The bank's definition of loyalty: "How many products does this customer hold with us?"

Banks measure loyalty by product holdings — not how long you've banked there. According to RBA data, only 22% of existing customers are on their bank's most competitive rate. The other 78%? They're paying more than a new customer would get — simply because they haven't asked or don't know better.

Loyalty is a wonderful quality. But it should be a two-way street. If your bank isn't rewarding your loyalty with their most competitive pricing, perhaps it's time to ask why — or better yet, let someone who works for you ask on your behalf.

Before You Choose Who Helps You — Ask Yourself This:

💰 "Who benefits when I pay less interest on my mortgage?"

A bank lender works for the institution that charges you interest. Their job is to match you to their bank's products — even when another lender may offer something more competitive.

A mortgage broker earns a trailing commission on your loan. That means the broker benefits when your interest rate stays as low as possible — because if you refinance away, they lose that income. Their financial incentive is directly aligned with yours.

🔄 "Would my bank lender ever send me to a competitor — even if the competitor has a lower rate?"

The answer is no. A bank lender can only offer their own products. A broker, by contrast, has a legal obligation to consider your interests and can access products from 30+ lenders.

🏆 "Who only gets paid when they win my business — and to win, they must offer me the most competitive deal possible?"

A broker doesn't earn a cent unless you choose to proceed. And to earn your business, they must present options that genuinely work in your favour.

"The Strongest Partnership Is When Both Parties Share Mutual Benefits."

And that is the relationship between a customer and their mortgage broker.

Common Misconception

"With all that value, a mortgage broker's fees must be costly..."

Actually, no. Here's how it works.

In most cases, you pay nothing directly to the broker. The lender pays the broker a commission when your loan settles — similar to how a real estate agent is paid by the seller, not the buyer. You would not receive an invoice from us.

What a mortgage broker does for you:

✅ Assesses your financial situation and borrowing capacity
✅ Compares products from 30+ lenders — not just one bank
✅ Handles the paperwork and application process
✅ Negotiates with lenders on your behalf
✅ Monitors your loan ongoing to ensure it stays competitive
✅ Manages all communication between you, the lender, solicitor, and real estate agent

Government regulation protects you:

Under Australian law, mortgage brokers must comply with the Best Interests Duty — a legal obligation to prioritise your interests when recommending a loan. This includes considering the loan's total cost, not just the interest rate.

Bank lenders, by contrast, are not subject to this same obligation. They only deal with their own bank's products and are not required to tell you if a competitor has something better suited to your needs.

Mortgage broker consulting with first home buyer

Bank Lender vs. Mortgage Broker

Feature	Bank Lender	Mortgage Broker
Products available	Own bank only	30+ lenders
Best Interests Duty	No	Yes — by law
Suggest competitors	Never	Always comparing
Works for	The bank	The customer
Ongoing monitoring	Rarely	Regular reviews
Cost to you	Nil	Nil in most cases*

*The lender pays the broker's commission. In rare circumstances where a fee may apply, this would be disclosed upfront before you proceed.

📊 Why 77.6% of Australians Use a Mortgage Broker

According to the MFAA Industry Intelligence Report (2024), mortgage brokers now facilitate 77.6% of all new home loans in Australia — a record high. The trend has grown consistently for over a decade because borrowers are realising the value of having someone who works for them, not the bank.

🏛️ Government Benefits You Might Be Missing

Many first home buyers don't realise they may be eligible for thousands of dollars in grants and stamp duty savings. The Australian Government and state governments offer several schemes designed specifically to help you get into your first home sooner.

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First Home Owner Grant

Eligible buyers may receive up to $10,000 (varies by state) when purchasing or building a new home.

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First Home Guarantee

Purchase with as little as 5% deposit — without paying Lenders Mortgage Insurance. Limited places available each financial year.

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Help to Buy & Stamp Duty Savings

The Help to Buy scheme and state-based stamp duty concessions could save you thousands on upfront costs.

Check Your Eligibility →

Eligibility criteria apply. Government schemes are subject to change. Your full financial situation would need to be reviewed prior to acceptance of any offer or product.

Ready to Explore Your Options?

Share a few details and we'll review your situation. No obligation, no pressure — just honest guidance from a licensed broker who works for you, not the bank.

Full Name *

Phone *

Email *

I'm Looking To...

Approximate Property Budget

Approximate Deposit Saved

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Anything Else We Should Know?

Your information is secure. Finance Hub and Networks, Australian Credit Licence 573164. Your full financial situation would need to be reviewed prior to acceptance of any offer or product. Subject to lender's credit criteria; fees and charges may apply.

🎉 Thank You!

Your enquiry has been received. One of our brokers will be in touch shortly to discuss your first home buying journey.

In the meantime, feel free to explore our calculators to get a better understanding of your borrowing power.

Still Weighing Your Options? Here's Why Customers Trust Us.

We don't just talk about working for our clients — we've built our practice around it.

⭐ 5.0 Google Rating

Every review reflects a real customer experience. Don't take our word for it — check what our customers say on Google.

🏆 Industry Award Finalists

Recognised as finalists in multiple industry awards — not just by our clients, but by the mortgage broking industry itself.

🏦 Lender Priority Status

We hold priority accreditation with major lenders including CommBank, Westpac, and St George — meaning faster processing and dedicated support for your application.

🌏 Bilingual Service

Fluent in both English and Vietnamese. We ensure nothing gets lost in translation when it comes to one of the biggest financial decisions of your life.

🏠 30+ Lender Panel

Access to over 30 lenders means we can match your unique circumstances with the most suitable products — not just what one bank has on offer.

📋 Licensed & Regulated

Finance Hub and Networks holds Australian Credit Licence 573164. We operate under strict government regulation including the Best Interests Duty.

How Getting a Home Loan Actually Works

It's more straightforward than you think. Here's what happens when you reach out to us.

1

Understanding Your Situation

We start with a conversation — not an application form. We need to understand your income, savings, employment situation, and what you're looking for in a home. This helps us identify which lenders are most likely to approve you and offer the most suitable terms.

2

Presenting Your Options

Based on your profile, we research across our panel of 30+ lenders and present you with the most suitable options. We explain each option in plain language — not just the rate, but the total cost, features, approval timeframes, and any trade-offs to consider.

3

You Make the Decision

This is your home, your loan, your choice. We provide the information and recommendations — you decide which option works for you. No pressure, no rushing. We're here to answer questions until you feel confident.

4

Application & Approval

Once you choose, we handle the heavy lifting — preparing your application, liaising with the lender, coordinating with your solicitor and real estate agent. We keep you informed at every stage so there are no surprises.

5

Settlement & Keys in Hand

Settlement day is when everything comes together — the loan funds transfer, ownership transfers to you, and you get the keys to your new home. We're with you right through to this moment.

Two Questions Every Buyer Should Ask Themselves

❓ "Why do I need this home loan?"

The answer is the same for everyone: to buy your dream home. The home where you'll build your life, raise your family, and create memories. The loan is the vehicle — the home is the destination.

❓ "What's the MOST important thing I need from my chosen lender?"

Most people answer: "The lowest rate" or "The lowest fees."

Those matter — but they're not the most important thing.

The most important thing is a lender who can give you unconditional approval FASTER than the other buyers competing for the same property.

Here's the Reality of the Australian Property Market

When you find your dream home, chances are other buyers have found it too. The seller wants certainty — they want to know the deal will go through. A buyer with unconditional approval from a fast-processing lender is far more attractive than a buyer offering a lower price but whose lender takes weeks to process.

The buyer who gets approved faster often wins the property. Not the buyer with the lowest rate — the buyer with the most certain, fastest approval.

This is exactly why having a broker who knows which lenders process fastest — and has priority status with them — gives you a real competitive edge.

"But I still want the lowest rate..."

And you should. Here's the good news — you can have both.

Once you've secured the property with a fast-processing lender and your loan has settled, we then review your interest rate against the broader market.

If there's a more competitive option available from a lender with a longer processing time — we can refinance you across. Yes, refinancing may cost approximately $1,000 in discharge and registration fees.

🤔 Ask Yourself This:

Is $1,000 worth it to secure the property of your dreams?

If you miss out on the property because your lender was too slow, you may spend months — even years — trying to find another home you love as much. And in a rising market, the next one could cost tens of thousands more.

A strategic approach: Get the home first, then optimise the rate.

Use our calculators to see how different rates affect your repayments — and whether the savings from refinancing would exceed the cost.

Happy family receiving keys to their first home

What Happens After Your Loan Settles?

Getting the loan is just the beginning. Life gets busy — and that's exactly when your rate can start drifting upward without you noticing.

The most common reason homeowners end up on a higher rate than they need to be is simple: life gets in the way. You're busy with work, family, renovations — checking your home loan rate falls to the bottom of the list.

That's where we come in. As your broker, we don't disappear after settlement. We actively monitor your loan and the market to make sure you stay competitive:

🔍 Regular rate reviews — We check your rate against what's available in the market

📊 Market monitoring — When lenders change policies or release new products, we assess if they benefit you

💬 Proactive communication — If we identify a better option, we reach out to you — you don't have to chase us

🔄 Negotiation with your lender — Often, we can negotiate a rate reduction with your existing lender before considering refinancing

📋 Annual review — A comprehensive check-in to make sure your loan still matches your evolving needs

Your Loan Doesn't Manage Itself

Think about it — you regularly compare prices for your phone plan, electricity, and insurance. Your mortgage is likely your biggest expense, yet most people set and forget it for years.

With Finance Hub, you get a broker who treats your home loan like an ongoing relationship — not a one-time transaction.

Because your pain point is that you're too busy living your life to monitor your mortgage. And that's exactly what we're here for.

"A quality relationship is when related parties share mutual benefits."

Between a Bank Lender and a Mortgage Broker — who would share mutual interest with you?

The bank profits when you pay more interest. The broker's ongoing income depends on keeping your rate as competitive as possible.

The answer is clear.

If You're Thinking of Buying — Let's Talk.

We'd be happy to help you secure a home loan with the most competitive cost possible. Submit your enquiry below, or reach out directly.

Full Name *

Phone *

Email *

I'm Looking To...

Approximate Property Budget

Approximate Deposit Saved

Employment Type

Anything Else?

Your information is secure. Finance Hub and Networks, Australian Credit Licence 573164. Your full financial situation would need to be reviewed prior to acceptance of any offer or product. Subject to lender's credit criteria; fees and charges may apply.

🎉 Thank You!

Your enquiry has been received. One of our brokers will be in touch shortly to discuss your home buying journey.

Prefer to speak directly?

📞 Call 0430 11 11 88 📅 Schedule a Time

Finance Hub and Networks Pty Ltd, Australian Credit Licence 573164. Your full financial situation would need to be reviewed prior to acceptance of any offer or product. Subject to lender's credit criteria. Fees and charges may apply. Information on this page is general in nature and has been prepared without taking into account your objectives, financial situation or needs.

Common Questions from First Home Buyers

We've helped hundreds of first home buyers. Here are the questions they ask most.

How much deposit do I need for my first home?▾

While a 20% deposit avoids Lenders Mortgage Insurance (LMI), many lenders accept as low as 5% deposit. Government schemes like the First Home Guarantee allow eligible buyers to purchase with 5% deposit without LMI. Each lender has different policies — your broker can identify which options suit your deposit level.

Do I have to pay the mortgage broker?▾

In most cases, no. The lender pays the broker a commission when your loan settles, similar to how a real estate agent is paid by the seller. You would not receive an invoice from us. The broker's ongoing trailing commission means they benefit when you stay on a competitive rate — aligning their interest with yours.

What if one bank rejects me — does that mean all banks will?▾

Absolutely not. Every lender has different credit policies, risk appetites, and assessment criteria. A rejection from one lender says nothing about your chances with another. Brokers regularly help clients who were initially declined by one lender secure approval with a different one — sometimes at a better rate.

How long does it take to get a home loan approved?▾

Approval timeframes vary significantly between lenders — from 2 business days with some lenders to 2-3 weeks with others. When competing with other buyers, faster unconditional approval can be the difference between securing your dream home and missing out. Your broker can match you with lenders known for faster turnarounds.

Should I get pre-approval before house hunting?▾

Pre-approval gives you confidence about your borrowing capacity and shows sellers you're serious. It typically lasts 3-6 months. However, pre-approval is not a guarantee — formal approval happens after a specific property is identified. Your broker can help you understand exactly what your pre-approval covers.

What government grants are available for first home buyers?▾

Grants and concessions vary by state and territory. Common ones include the First Home Owner Grant (FHOG), stamp duty concessions, and the First Home Guarantee scheme. Eligibility criteria differ for each. Your broker can help identify which grants and concessions apply to your situation and factor them into your loan strategy.

What happens after my loan settles?▾

Settlement day is when you get the keys! After that, your broker continues to monitor your loan to ensure you stay on a competitive rate. Market conditions change, lender policies shift, and new products emerge — your broker reviews these for you so you don't have to. If a better option becomes available, they'll let you know.

Can I buy a home if I'm self-employed?▾

Yes. Several lenders specialise in self-employed borrowers and can assess income differently from major banks. Some accept as little as one year of tax returns, while others may use BAS statements or accountant declarations. A broker with access to 30+ lenders can find the right fit for your business situation.

Buying Your First Home?These 3 Beliefs Could Cost You Thousands.