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Powered by A guide to First Home Buyers THE EVOLUTION AND GROWTH OF THE FIRST HOME BUYER AND THE BENEFITS OF HAVING THEM AS CLIENTS
Contents
Introduction 03
Who are First Home Buyers? 04
How to target and advertise
to First Home Buyers 09
How to deliver great service
to First Home Buyers 14
What products and services
are out there for First Home Buyers? 18
How keeping First Home Buyers
happy benefits you 22
The importance of feedback 26
A GUIDE TO FIRST HOME BUYERS 2
INTRODUCTION
This e-book provides
brokers with uncomplicated
yet valuable advice on
how to connect with First
Home Buyers (FHBs).
Created in collaboration with leading lenders In addition, First Home Buyers often receive advice
mortgage insurance provider, Genworth, this and assistance from a variety of sources, including
e-book provides brokers with uncomplicated family and friends, which can serve as a further
yet valuable advice on how to connect with complication for the broker whose responsibility it
First Home Buyers (FHBs) and communicate with is to guide the prospective homeowner through the
inexperienced clients, while making the process as process of securing a home loan.
simple and productive as possible for all involved.
Patience, empathy and resilience are all qualities
Now more than ever, FHBs rarely fit into one that a broker benefits from when dealing with
homogenous demographic group. Rather this the inexperienced borrower, who may have more
segment, defined by their relative inexperience in questions, concerns and misconceptions than the
property dealings, has become increasingly usual client. But treat them well, and they can easily
diverse and difficult to categorise and target. become your most loyal and valuable long-term
customer in the life of your business.
However, there remains a number of characteristics
common to most FHBs, including a relative lack of Please enjoy this educational e-book on the
knowledge and understanding of the processes and First Home Buyer.
steps involved in securing suitable finance for what
will likely be the most valuable asset the client will
have ever purchased.
As a result of the typical First Home Buyer’s
inexperience, what is often a fairly straightforward
process can require greater resources of a broker
who may need to adopt a more hands-on approach
to ensure the FHB is made to feel comfortable all
the way to settlement and beyond.
A GUIDE TO FIRST HOME BUYERS 3
Who are First
Home Buyers?
First Home Buyers (FHBs) are no longer
just young couples in their twenties.
Due to changes in the housing market
and the broader economy, high property
prices, stagnant wage growth, changing
regulation and compliance requirements
as well as shifting consumer habits and
social norms, today’s FHBs are more
diverse than ever before.
A GUIDE TO FIRST HOME BUYERS 4
WHO ARE FIRST HOME BUYERS?
Identifying your target market The changing range of FHBs
The first steps in being able to target FHBs FHBs are getting older, but why?
is knowing their values and priorities. According to the Australian Bureau of Statistics (ABS)
Why? 2017-18 Survey of Income and Housing, approximately
1,012,000 people surveyed were recent home buyers
For any business, people are the driving force and more than a third (35%) were FHBs.1 However,
behind the development of markets. And changing of this third, just 55% were households with a reference
demographics means changing markets. Staying on person under 35 years, which has dropped from 63%
top of who is your target market allows you to adjust in 2015-16 and 69% in 1995-96.2
your marketing strategies accordingly, to deliver
services and products that meet consumer needs, While the most common age remains within the
and that consumers actually want. 25-34 range, compared to 20 years ago the population
buying their first home is increasingly in older age
Several factors that have changed considerably in groups, and younger households (aged under 35)
the last 20 years can be considered when brokers owning their own homes is less common than it
look at identifying who is the modern-day FHB. They was in 1995-96.3
include changing family structures and expectations
around what people are likely to achieve and acquire
by any given age, and the economic forces that
influence consumer purchasing.
Recent Home Buyers, by age of household reference person, 2017-18
Fig 1. Recent home buyers, by age of household reference person, 2017/18
50%
40%
30%
20%
10%
0%
15-25 25-34 35-44 45-54 55-64 65 or more
First home buyers Changeover buyers
Australian Bureau of Statistics (ABS), Across the generations: Twenty years of housing, Case Study 4130.0 -
Housing Occupancy and Costs, 2017-18.
1
ustralian Bureau of Statistics (ABS), Across the generations: Twenty years of housing, Case Study 4130.0 - Housing Occupancy and Costs, 2017-18.
A
2
Australian Bureau of Statistics (ABS), Across the generations: Twenty years of housing, Case Study 4130.0 - Housing Occupancy and Costs, 2015-16.
3
Ibid.
A GUIDE TO FIRST HOME BUYERS 5
WHO ARE FIRST HOME BUYERS?
The growth of owner occupied
Going some way to explaining why the average FHB
age has been on the up and up, the property market,
“
Superannuation and increased
accessibility to investment options
such as shares and mutual funds,
particularly at the more affordable end of the price
scale, has changed significantly over the last two have expanded the investment
decades, with the average real median dwelling value
increasing from $229,000 to $520,000 between 1995-
options available to Australians
96 to 2015-16.4 As a result, we have seen a sizable and considering an investment
shift in the behaviour and make-up of the typical FHB.
property as your first property
More than ever families are recognising the necessity
of pulling down two incomes in order to gain a foothold
purchase in a market where
onto the ever more elusive property market ladder. As competition and demand are high,
a result of this change, it has become more challenging
is becoming less favourable.
”
6
for single income households to purchase a home as
the market has responded to the increased demand.5
Prospective buyers today well understand the value
of property as a long-term investment, also contributing
to the increase in demand and flow-on effects for
wannabe FHBs. In line with the above graph, First
Home Buyers are a segment in the Australian market
where there is an increasing desire to buy property
that is for owner-occupied purposes.
4
Ibid.
5
Ibid.
6
Ibid.
A GUIDE TO FIRST HOME BUYERS 6WHO ARE FIRST HOME BUYERS?
“
For example, we can see in December
2019, the number of owner/occupier
FHB loan commitments rose by 6.2%
in seasonally adjusted terms, while the
number of FHB loan commitments for
investment purposes accounted for
only 5.4% of all FHB commitments.
”
7
Australian Bureau of Statistics (ABS)
Fig 2. In December, the numberLHS
of first home buyer owner occupied
RHS
loan commitments
rose
4, 000 in all states except Tasmania (ABS, 2019) 350
3, 500 300
3, 000
250
2, 500
200
2, 000
150
1, 500
100
1, 000
500 50
0
Dec11 Dec13 Dec15 Dec17 Dec19 Dec13 Dec15 Dec17 Dec19
NSW VIC QLD WA SA TAS NT ACT
7
Australian Bureau of Statistics (ABS), First Home Buyers, Case Study 5601.0 – Lending Indicators, December 2019.
A GUIDE TO FIRST HOME BUYERS 7WHO ARE FIRST HOME BUYERS?
So, who are the modern day FHBs?
In contrast to 20 years ago, younger demographics are
now increasingly renting through private landlords and property
ownership is being achieved at later ages with fewer people
owning their homes outright and a greater proportion of
those in the middle age bracket owning their own homes
with a mortgage.8
?
Fig 3. Owner occupier and investor first home buyer loan commitments in Dec 2019
(ABS, 2019)
4, 000
3, 500
3, 000
2, 500
2, 000
1, 500
1, 000
500
0
NSW VIC QLD SA WA TAS* NT* ACT
*Investors first home buyers (number) for Tas and NT are not available for publication
Owner occupier Investor
8
Australian Bureau of Statistics (ABS), Across the generations: Twenty years of housing, Case Study 4130.0 - Housing Occupancy and Costs, 2015-16.
A GUIDE TO FIRST HOME BUYERS 8How to target
and advertise
to First Home
Buyers
Once a broker understands
their FHB customer, it’s time
to use that knowledge to
attract them.
A GUIDE TO FIRST HOME BUYERS 9HOW TO TARGET AND ADVERTISE TO FIRST HOME BUYERS
Have a unique value proposition FHBs are often new to the property market
and will need someone who can reduce confusion,
Now that you know who First Home Buyers introduce them to their available options and
are, you can consider them in categories help them understand the benefits, risks and
according to their needs. processes of buying their first home.
Use the below example as a guide.
It is key that through your marketing you remain
clear about what your services can offer each unique
FHB group. It is essential that you define not what
brokers can offer FHBs, but what you can offer them.
Most importantly…
“Emphasise that you are there to reduce worry,
give them someone to trust and let them know
that you are there to reduce risk.
”
MFAA State Manager
Business Development (NSW/ACT)
Zarko Jokic, 2020
Type of First Home Buyer What are their needs? What can I offer?
Middle aged couple: • Looking for owner occupied • Access to lenders
• With children in school • Need a family home • Access to builders, legal and
• Lack references • Want property close to other services to make the
schools and transport process easier
• Middle income earners
• Support to discuss potential
properties and the benefits
and drawbacks of the property
• Supply data on potential
property
Older couple: •W
ant a property to retire in after • Access to lenders
• Have been renting for lifetime they transfer business to children • Refer solicitor or conveyancer
• Have good credit history •W
ant property close to their •F
amiliarity with their business’
business area
• Own their own business
• Want quiet neighbourhood
A GUIDE TO FIRST HOME BUYERS 10HOW TO TARGET AND ADVERTISE TO FIRST HOME BUYERS
Identify where your customers Don’t just find FHBs, let FHBs
start their journey find you
Ask anyone of any age if they have a mobile When researching for any purchase, almost every
phone, and whether they can use that phone individual begins on the internet, usually through a
to access the internet, and they will more search engine like Google. The digital world is where
than likely say ‘of course, yes’. you need to present your business and services to
FHBs. Placing your business at the forefront of their
With over 21 million Australians using the internet
search is one of the best ways to reach your target
and 93% of these individuals using the internet every
“
market. So how do you go about doing this?
day, establishing your presence in the digital world is
essential as this is where your customers will most
likely begin their search.9
You are a marketer first and
a broker second, marketing
generates leads and brokers
+
deliver the services.
”
MFAA State Manager
Business Development (NSW/ACT)
Zarko Jokic, 2020
The first three things you need to set
up to generate FHB leads is:
• Get a website
• Get a Facebook page
+
• Get a LinkedIn account
The key reason for these three actions is that they
act as your business cards in the digital world. This
means that you can be found on search engines
used across the world, on the biggest global social
media platform, and you are also available on the
largest professional network platform.
Essentially you are exploring the range of digital
options as considered by people of various age
groups, professions and interests.
9
Ewan Watt, Australian Internet and Social Media Statistics: 2019 Usage Data, Two Cents by ROI.com.au, (21 June 2019),
https://www.roi.com.au/blog/australian-internet-social-media-statistics-2019.
10
anny Goodwin, Organic vs. Paid Search Results: Organic Wins 94% of Time, Search Engine Watch, (23 August 2012),
D
https://www.searchenginewatch.com/2012/08/23/organic-vs-paid-search-results-organic-wins-94-of-time/
A GUIDE TO FIRST HOME BUYERS 11HOW TO TARGET AND ADVERTISE TO FIRST HOME BUYERS
Do you need to invest in paid Activity generated from your social media platforms,
such as good reviews can reach hundreds of potential
digital advertisement? leads by simply being posted. Your website can then
turn up in thousands of searches when an FHB begins
A common question is whether you should invest in their journey.
paid digital advertisements. Natural search results are
the most successful at attracting clicks and less than Looking to develop your digital presence?
50% of each age demographic can be seen to click Get the MFAA Social Media ebook available at:
on these.11 That isn’t to say that paid advertisements https://www.mfaa.com.au/social-media-guide
are not worth investing in. Paid advertising can be
effective in generating awareness of offers, greater
brand awareness and marketing to people who have
visited your site before, but your first steps should be
to focus on creating the right message that conveys
your services and their relevance to FHBs.
Instead of just cold calling potential leads or trying to
find leads through lenders and service providers, you
can create an avenue for FHBs to reach out to you.
$
AD
11
Ibid.
A GUIDE TO FIRST HOME BUYERS 12HOW TO TARGET AND ADVERTISE TO FIRST HOME BUYERS
Fig. 4 Paid Per Click (PPC) vs natural distribution (Goodwin, D. (2012))10
Natural Paid
Search 94% 6% Search
Of the 1.4 billion successful search queries, the vast majority ended up with natural results being clicked.
Fig. 4 Paid Per Click (PPC) vs natural distribution (Goodwin, D. (2012))10
55%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0
2-17 18-24 25-34 35-44 45-54 55+ MALE FEMALE
Age Gender
Demographics of people clicking on paid search ads.
A GUIDE TO FIRST HOME BUYERS 13How to deliver
great service
to First Home
Buyers
According to First Home Buyer
Buddy principal Daniel Baxter,
the FHB is a unique client who
requires a unique approach.
A GUIDE TO FIRST HOME BUYERS 14HOW TO DELIVER GREAT SERVICE TO FIRST HOME BUYERS
With Daniel Baxter
of First Home
Buyer Buddy
A B
After specialising in the FHB space for many Daniel suggests the following strategies to overcome
years, Daniel says it remains a daunting this obstacle:
demographic for many brokers who often
Keep it simple. Leave out industry jargon and
prefer to designate the FHB client base to
complicated language.
the too hard basket.
But, according to Daniel, there are ways and strategies Put yourself in their shoes. Realise this is their
that brokers can adopt to ensure the FHB has a first time navigating what will likely be the biggest
positive experience in their home buying journey, while financial decision of their lives so far. Be sensitive
providing a smooth process for the broker as well. and understanding.
Consider maintaining a ‘need to know’ policy
Always put yourself in their for the FHB to avoid information overload and only
shoes describe aspects in terms of what they mean for
the FHB to make them easier to grasp.
“Always put yourself in their shoes,” Daniel says.
Be human with them. They came to you rather
“Brokers need to remember a FHB will likely not
than a bank for a reason.
have the same knowledge base as many other
clients in financial matters or even in life more
generally. They will be unaware of the processes and
a lot of the content even of your first conversation
with a FHB client will be the first time they are
“
hearing many of the words and concepts.”
Daniel explains brokers tend to be quite analytical
people. But an FHB is rarely of the same mindset.
As a result, sharing industry jargon and using overly
complicated phrases and concepts will not be All of these techniques will
helpful and may in fact prove counterproductive, assist in building trust between
or result in the loss of the client, particularly if it
makes them feel unintelligent or ignorant. the broker and client, which
is a vital component of any
relationship, particularly one
”
as important as this.”
A GUIDE TO FIRST HOME BUYERS 15HOW TO DELIVER GREAT SERVICE TO FIRST HOME BUYERS
Be mindful of emotions Be wary of information-
Whilst FHBs may be older than ever before, the fact overload
remains, by definition, they are still inexperienced
The nature of the FHB means they will be
when it comes to purchasing property. For an FHB,
experiencing a significant chapter in their lives.
buying a property can be a scary experience and
That being the case, it is not uncommon for the
can trigger strong emotions, says Daniel. Brokers
FHB to be on the receiving end of a multitude
need to be prepared for this reality and respond
of advice, solicited and unsolicited, from family
accordingly to keep the FHBs journey as positive
and friends.
and successful as possible.
According to Daniel, the problem with this,
“The FHB is likely to be nervous, reluctant, unsure,
particularly within a rapidly changing environment,
excitable, erratic sometimes, they’re going to have
is that it may not take long for a person’s well-
a lot of questions, and at the end of the day can be
meaning advice to be completely out of date,
frustrating to deal with. Brokers need to go into the
irrelevant or even damaging.
process with this in mind while thinking of ways to
pre-empt these emotions and mitigate them to make
sure the client feels informed and more confident in
the process.
“One way to do this is to really get to know the client
perhaps by asking them, ‘what is your one biggest
fear when it comes to buying your first home?’ They
might say ‘paying too much for a property’, or ‘the
paperwork really freaks me out’, which then allows
you to delve deeper and potentially solve their
biggest fear, making the process much easier and
smoother for all involved.”
“
Brokers need to understand the FHB, given their inexperience,
may be more suggestable than their usual client and therefore
more easily influenced by advice from friends and family.
Unfortunately, too much information can get in the way of the
FHB achieving their goal, particularly if it’s inaccurate or outdated.
Brokers should do all they can to ensure they are clearly
explaining the process to the client and making the journey as
easy and stress-free as possible, so that the client focuses
on their professional advice above all else.
” A GUIDE TO FIRST HOME BUYERS 16HOW TO DELIVER GREAT SERVICE TO FIRST HOME BUYERS
Importance of “future-pacing”
the client
“
Try and make sure the client
is not too pre-occupied with
the paperwork, the expenses,
“It’s never too early to have a conversation with
a broker, but it can certainly be too late.” the pay slips. Be clear you
Daniel says new lender policies and regulatory need these things to achieve
developments mean now more than ever it is vital
that a FHB considers just what it takes to secure
that ultimate goal, but keep
a loan. that goal at the forefront of
“It is important brokers are future-pacing their their mind which should help
FHB clients. It’s more complicated than ever going them to focus and the process
through the process, the fact find, looking at living
to move along smoothly.
”
expenses, it’s full-on, so it’s important to keep the
client’s eyes on the prize, in other words, the home.
SOLD
A GUIDE TO FIRST HOME BUYERS 17What products
and services
are out there
for First Home
Buyers?
One of the biggest challenges for
FHBs is saving for a deposit. Typically,
lenders require a 20% deposit of the
purchase price in order to grant a home
loan. However, there are several options
available to FHBs who don’t have the
required 20% deposit.
A GUIDE TO FIRST HOME BUYERS 18WHAT PRODUCTS AND SERVICES ARE OUT THERE
FOR FIRST HOME BUYERS?
Brokers can utilise several tools to assist Lenders Mortgage Insurance
their FHBs to buy a home sooner with a
deposit as low as 5%. These tools include (LMI)
Lenders Mortgage Insurance (LMI), family-
What is Lenders Mortgage Insurance?
back guarantees and Government grants
that include the First Home Loan Deposit Lenders Mortgage Insurance assists FHBs purchase
Scheme (FHLDS), First Home Owner Grants a home sooner with a deposit as low as 5%. With
(FHOG) and State based grants. LMI coverage a lender may be prepared to provide
FHBs with a home loan with deposit as small as
5% deposit. LMI is an insurance policy that a lender
takes out to protect itself against the risk that the
borrower defaults on the loan repayments and the
lender is unable to recover the full outstanding
loan amount.
How does LMI help the borrower?
LMI enables the borrower to obtain a home loan
5% that might not otherwise be available, by reducing
the deposit they are required to provide. This
means the borrower may be able to:
• Buy a home sooner and stop paying rent; or
• Buy a more expensive property with the deposit
they currently have.
• It may also enable a person to borrow at an
interest rate that is comparable to a borrower
with a substantial deposit.
A GUIDE TO FIRST HOME BUYERS 19WHAT PRODUCTS AND SERVICES ARE OUT THERE
FOR FIRST HOME BUYERS?
How can Genworth
assists brokers?
Brokers play an important role in providing guidance
and key information to people who are looking to
buy a home or invest in property. Genworth can work
closely with the broker network to ensure they have
the resources and assistance they need, so they can Visit the Genworth
advise their clients when LMI may be appropriate
for them.
website for useful
links for Brokers to use
Genworth has a comprehensive program to support
its broker network. Genworth offers training and
when discussing LMI:
education for brokers, so they can understand how
Lenders Mortgage Insurance works and where it LMI Tools
may be applicable to potential borrowers. Genworth
– Buy or Rent Calculator
participates in personal development training days
and industry broker roadshows where our Genworth – Servicing Estimator
teams are available to answer questions and support
brokers with additional information. – LMI Premium Estimator
The Genworth It’s My Home magazine is a lifestyle – Online Learning Resource Centre
publication that includes information on the
home buying process, checklist for moving and
understanding the different home loan options and Marketing Resource Centre
much more. The magazine is available to brokers – LMI Fact Sheet, infographic and video
at no cost to share with their FHBs. There is also a
dedicated resource centre on the Genworth website – Genworth’s It’s My Home magazine
where brokers can access marketing material such
as fact sheets, FAQs and videos to assist them
explain the benefits of Lenders Mortgage Insurance
to their clients.
?
A GUIDE TO FIRST HOME BUYERS 20WHAT PRODUCTS AND SERVICES ARE OUT THERE
FOR FIRST HOME BUYERS?
Government Grants First Home Loan Deposit
and Schemes Scheme
First Home Owner Grant (FHOG) The First Home Loan Deposit Scheme is an
Australian Government initiative to support eligible
Arguably there has never been a better time to be
first home buyers purchase a home sooner. It
a first home buyer. The First Home Owner Grant
does this by providing a guarantee that will allow
(FHOG) is a Government scheme that subsidises the
eligible first home buyers to purchase a home with
purchase or construction of new homes.
a deposit of as little as five per cent.
Like many other subsidies, specifics of the FHOG
The Scheme will support up to 10,000 loans each
may vary depending on the state or territory. For
financial year through participating lenders.
instance, in Victoria the FHOG is worth $10,000
when you buy or build a new home, rising to The two major bank participating lenders,
$20,000 for new homes valued up to $750,000. the National Australia Bank (NAB) and the
Commonwealth Bank of Australia (CBA), will
While in the ACT the scheme provides eligible people
offer guaranteed loans from the Scheme’s
buying their first new or substantially renovated
commencement date of 1 January 2020.
home valued up to $750,000, up to $7,000.
The 25 non-major lenders will begin offering
Each state and territory have their own nuanced
guaranteed loans from 1 February 2020. Consistent
version of the scheme, which are of course subject
with NHFIC’s Investment Mandate, the non-major
to alteration at any given time, so as always it is
lenders will receive no less than 50 per cent of the
advisable to do your research. Links to each state
initial 10,000 guarantees allocated in the current
and territory’s rules around the FHOG can be found
financial year.
at firsthome.gov.au
NHFIC has developed a simple fact sheet with
key information about the Scheme which can be
downloaded from their website at nhfic.gov.au/
media/1235/fhlds-fact-sheet.pdf
Additional state-based Grants
Many States have their own grant schemes.
Please check with your State to understand their
grant schemes.
A GUIDE TO FIRST HOME BUYERS 21How keeping
First Home
Buyers happy
benefits you
Dylan Salotti of Divitis Finance has
targeted his broking business at
Generation Y. As a result, Dylan is an
experienced professional in dealing with
first home buyers, with the segment
making up two thirds of his client base.
He shares his insights into why keeping
FHBs happy benefits the broker in the
long-term.
A GUIDE TO FIRST HOME BUYERS 22HOW KEEPING FIRST HOME BUYERS HAPPY BENEFITS YOU
With Dylan
Salotti of
Divitis Finance In fact, Dylan said the higher emotionality of the
FHB means that at the end of the process you often
have a client that is more emotionally invested in the
broker/client relationship and a loyal customer who
will be more than happy to continue coming back to
you for future purchases and refer you to others.
“That’s probably the biggest upside. You’ll notice
that first home buyers are often still in that stage of
First home buyers have been Dylan Salotti’s
their lives where they are very social, so you’ll find
bread and butter for the past five years.
that most of your referrals will come on a Saturday
It is a demographic that he identified early
night or on a Monday morning because they’ve just
on as a strength for his business, and it’s a
been out having a beer with a friend.”
clientele that he is particularly passionate
about helping. Even so, Dylan says FHBs In addition, Dylan explains it’s not uncommon for
aren’t for everyone. first home buyers to be at the beginning of a series
of large purchases they will make throughout their
“They can be emotional, inexperienced and
lives. This presents a number of opportunities to the
frustrating to deal with. But once you realise that,
broker who can make a strong connection at this
you just have to learn to work with them. Explain
point in their client’s life.
to them the processes and the journey with the
assumption that they know absolutely nothing,
and you’re on your way to providing a great service
and helping them achieve their goals.
According to Dylan, for a large proportion of brokers,
first home buyers are hard work, they are emotional
and require more time and resources. “But to me,
I see this as an opportunity to help people who are
truly in need of assistance, which is fulfilling, and
also has other benefits as well.
“
Buying a home can be a real rollercoaster in terms of emotions
for first home buyers, but, if you are able to help them out,
help manage the stress and complication of the process and
assist them achieve their goals of home ownership, you can
have a client for life.
” A GUIDE TO FIRST HOME BUYERS 23HOW KEEPING FIRST HOME BUYERS HAPPY BENEFITS YOU
As well as purchasing property, Generation Y has “You also want to pay attention to the trends and
become a renowned entrepreneurial generation, statistics, which say that many people buying a new
starting more small businesses earlier in their adult home will upgrade their car within a few months.
lives than any previous generation. So, if you’ve done a really good job on their home
loan, you’ve got a really good chance of getting the
While many Gen X-ers considered university the
car finance too.
ticket to a solid career path and climbing the
corporate ladder, millennials are interested in doing “And you go on from there. Look at how old their
their own thing and consider entrepreneurship as a children are, will they need a car soon? What about
highly respected and admired career path of its own. their colleagues? Are they blue collar workers who
might be in the market for a ute upgrade?
“
As a result, one in five Australian SME business
owners is a millennial. This of course means that in
addition to purchasing the home, Gen Ys are often
in the market for a car or equipment to support their
small business. It’s all about knowing your
Award-winning MFAA finance broker Mhairi client and anticipating what
MacLeod of Astute Ability Group recently spoke
to the MFAA about opportunities for diversification,
their needs might be and
which she said is all about getting to know your providing that service for your
client. Anyone can do it.
”
client base.
“Mortgage brokers have got access to their clients
whole fact find. They know how they spend their
money, what their hobbies are, what’s their current
debt, whether they are self-employed or PAYG.
1 in 5
Australian SME
business owners
is a millennial
A GUIDE TO FIRST HOME BUYERS 24The importance
of feedback
The role of a broker is heavily influenced You have not only made a lasting impression for
by their relationship with their existing and a first home buyer, but you have also opened
prospective clients. When your job is strongly yourself up to the opportunity of gaining more leads
based on relationships it is also tied to trust down the track. These satisfied clients are likely
and your ability to foster and grow this trust. to celebrate their first home, make their purchase
Getting feedback from your clients is a great known amongst family and friends and are excited
way to show examples of your work and what to show this through reviews, social media,
it means to be your client. This is important conversations and more.
for lead generation as prospective clients
can feel that you understand their needs Word of mouth marketing is
and are able to assist them in a similar way.
the most effective marketing
“
Everyone remembers their
first home
Getting feedback from first home buyers is According to Nielsen, 92% of
important as these clients are new to the home
loan market and often don’t know where to start.
people around the world said
They need someone who can guide them through they trust the recommendations
the process. A broker who can fill that role will
of family and friends above all
forever be a part of that client’s memorable
other forms of advertising.
”
moment.
Therefore, it is beneficial to ensure you have given
your clients the resources to mention you and your
services whether it be through verbal conversation,
online forums or social media. Those who spread
the word of your services are likely to have a circle
of friends, family and colleagues who may be
starting their first home journey and hearing of a
successful purchase from someone they are close
to may be all you need to have them enquire
about you and your services.
A GUIDE TO FIRST HOME BUYERS 25The importance
of feedback
With the changing technologies and the Getting feedback can grow your base of
demographics of first home buyers now prospective leads. It is always a benefit for any
encompassing a broader range, the methods of business to get positive feedback for their services.
building your client relationships has broadened However, it is now equally as important to ensure
also. Ensuring that you are available to your clients that you are available in the right places to get
through all avenues is essential to avoid a lead recognition for this feedback and to offer your
turning cold. Make sure that you have a digital services to prospective leads.
presence by setting up a website, having active
Even if your clients are talking on digital platforms
social media pages such as a Facebook and
about what a fantastic experience they had
LinkedIn, and that you are connecting with your
purchasing their first home, if you aren’t on any of
clients on these platforms.
“
these, fewer people are able to see you, recognise
you for providing these services and it ultimately
becomes harder for the prospective lead to find you
and enquire about how you can help them. Make
If a tree falls in a forest and sure you are visible to your target market, so that
when a happy client gives praise, you are able
no one is around to hear it, to seen and found.
does it make a sound?
”
When you first meet your clients and introduce
not only your name, business and profession, also
introduce them to your social media pages. When
‘Hi!’
you have successfully helped them buy their first
home get them to mention their experience on your
social platforms. Don’t be afraid to get a picture
with your client. Seek their permission to be tagged
in your post and ask if they would like to make
a comment on their experience with you.
home loans|
26Notes
A GUIDE TO FIRST HOME BUYERS 27MFAA Contacts
Mortgage & Finance Association of Australia
Suite 902, Level 9
130 Pitt Street
Sydney, NSW 2000
mfaa.com.au
NSW / ACT
Zarko Jokic
P: 0472 868 094
E: zarko.jokic@mfaa.com.au
VIC / TAS
Kylie Louden
P: 0472 879 597
E: kylie.louden@mfaa.com.au
QLD
Leah Hudson
P: 0420 365 173
E: leah.hudson@mfaa.com.au
SA / NT
Wendy Robertson
P: 0472 866 878
E: wendy.robertson@mfaa.com.au
WA
Natalie Price
P: 0472 866 872
E: natalie.price@mfaa.com.au
This Guide contains general information and provides
a summary only. The information contained in this
Guide does not constitute financial, legal and/or tax
advice, and is current as at 27th of August 2020.You can also read
