Choosing a Mortgage Broker as a First Home Buyer in Sydney
Everyone tells you to compare brokers. Nobody tells you what a first home buyer mortgage broker should be judged on when you have never done this before and have no reference point for what good looks like. There is one question that matters more for a first home buyer than for any other borrower, and it is not the one most people ask.
The short answer
For a first home buyer in Sydney, the single most useful thing to check is whether the broker’s lender panel includes the lenders participating in the government deposit scheme, because scheme loans can only be written through a participating lender and that panel is narrower than the full market. After that: a current Australian Credit Licence you can verify on ASIC Connect, membership of the MFAA or FBAA and of AFCA, clear answers on what your deposit source means for lender choice, and a willingness to tell you when waiting is the better move. Most brokers cost you nothing, because the lender pays them.
Why this is different when it is your first loan
A refinancer choosing a broker has a reference point. They have been through an application, they know what documents were requested last time, they can tell whether this conversation is sharper or vaguer than the last one. You do not have that. Everything a broker says will sound plausible, because you have nothing to compare it against.
So the usual advice for choosing a first home buyer broker in Sydney, which amounts to find someone good, is close to useless. What works instead is checking things that have verifiable answers rather than judgement calls: licences you can look up, memberships you can confirm, panel questions with factual answers, and fee positions that should be in writing. Those you can assess on day one without any experience at all.
Three things also make a first home buyer’s file structurally different from everyone else’s, and they are the things a broker should raise before you do. You are likely using a government scheme, which restricts which lenders can write the loan. Your deposit is more likely to include a gift, family help or superannuation savings, and lenders treat each of those differently. And you are the borrower most exposed to bidding on something you cannot actually finance, because you have never tested the gap between a scheme cap and a lender’s assessment.
The lender panel question that only matters to you
Ask any broker how many lenders they have on panel and you will get a number. It is the wrong question, or at least an incomplete one.
Loans under the government deposit scheme have to be written through a participating lender. That panel is set by Housing Australia and is narrower than the market as a whole. Help to Buy is narrower again, with only a small number of participating lenders. So for a first home buyer intending to use a scheme, the relevant number is not how many lenders a broker can access, it is how many scheme-participating lenders they can access and how well they know each one’s credit policy.
A hundred lenders on panel is meaningless if the ones that suit your file are not on the scheme panel, and nobody mentioned that until after the application.
This is the question to open with when you speak to any first home loan broker: which lenders on your panel participate in the scheme I am likely to use, and which of those would suit my situation. A broker who works with first home buyers regularly answers immediately and has a view about two or three specific lenders. A broker who does not will talk about the scheme in general terms and move on.
It matters because a scheme-eligible buyer with a perfectly reasonable file can still be declined for landing at the wrong participating lender. The application is the same, the borrower is the same, the answer is different. How the scheme itself works, what the guarantee actually protects and what to have ready is set out on our first home buyer loans page.
Eight questions, and what a good answer sounds like
None of these require you to know anything technical. The quality of the answers tells you most of what you need.
| Ask | A good answer | A warning sign |
|---|---|---|
| Which lenders on your panel participate in the scheme? | Names two or three, with a view on which suits your situation and why. | Talks about the scheme generally without naming who writes it. |
| What will you need from me, and in what order? | A specific checklist, sent to you, before you send anything. | “Just send through whatever you have.” |
| My deposit includes a gift from my parents. Does that change anything? | Explains that lenders treat gifts differently, what evidence is needed, and which lenders are more comfortable. | Says it will be fine without asking any follow-up questions. |
| What can I actually borrow, as opposed to what the scheme cap allows? | Separates the two immediately and explains they are different assessments. | Quotes the scheme cap back at you as if it were a budget. |
| What happens if the valuation comes in under the contract price? | Explains the shortfall becomes yours to cover and how to protect against it before you bid. | Treats it as unlikely and moves on. |
| Will this cost me anything, in any circumstance? | A clear no, or a clear yes with the amount, in writing, before work starts. | Anything vague, or “we can sort that out later.” |
| What is your credit licence number and who is your dispute scheme? | Given without hesitation, and checkable. | Deflection, or an offer to send it later. |
| Is there a scenario where you would tell me not to buy yet? | Describes one, specifically. | Says no. There is always a scenario. |
You are not testing knowledge with these. You are testing whether someone answers a direct question directly, which is the trait that matters most across the four months that follow.
Try these questions on us first.
Book a free 15-minute call and ask every one of them. You will get straight answers on which scheme lenders suit your file, what you can realistically borrow, and what to have ready. No credit check, no paperwork, no obligation, and no fee at any point.
Verifying a broker in ten minutes
Everything here is checkable by you, without trusting anyone, which makes it the most useful ten minutes you will spend.
- Ask for the Credit Guide before you send documents. Every broker must provide one before giving credit assistance. It names the licensee, sets out how they are paid, lists the lenders they work with and explains how to complain. If you have engaged someone and have not received one, ask why.
- Check the licence on ASIC Connect. A broker either holds an Australian Credit Licence or operates as a credit representative under someone else’s. Both appear on the ASIC Connect professional registers. Ask for the number and look it up.
- Confirm industry membership. Commonly the MFAA or the FBAA. Both publish member directories.
- Confirm AFCA membership. That is your free external dispute pathway, and it is not optional for licensees.
- Read the reviews for detail, not stars. A review that describes what actually happened tells you more than twenty that say “great service.”
One more thing worth knowing. Since 1 January 2021, mortgage brokers have owed a Best Interests Duty under the National Consumer Credit Protection Act, and where their interests conflict with yours, yours must be given priority. That duty covers a home loan for a property you will live in. Bank staff arranging their own bank’s products do not carry it, and neither do comparison sites.
What your deposit is made of changes who suits you
First home buyer deposits are rarely a single clean savings balance, and the composition matters more than the total.
- Genuine savings. Some lenders want to see a portion accumulated over a period rather than appearing recently. How much and over how long varies between them.
- A gift from family. Common, and acceptable to most lenders, but the evidence they want differs. Some require a statutory declaration confirming it is a gift rather than a loan, and some want it held for a period first.
- First Home Super Saver. Voluntary contributions released from super for a first home. It has its own caps, eligibility and timing set by the ATO, and the release process takes time that needs building into your plan. Confirm the current rules with the ATO or your accountant.
- A guarantor instead of a larger deposit. Where family equity is available, a guarantor arrangement can be an alternative route. How a broker handles the guarantor conversation, and whether they brief your parents as carefully as they brief you, is one of the clearest signals you will get about how they work.
Ask the deposit question early, because it narrows the lender shortlist more than most first home buyers expect, and it interacts with the scheme panel. A broker who does not ask what your deposit is made of has not started assessing your file.
The real tell: will they tell you to wait?
This is the one that separates brokers, and it is the hardest to fake.
There are situations where the honest advice to a first home buyer is not yet. Where three more months of clean account conduct would materially change the assessment. Where a small consumer debt is costing far more in borrowing capacity than it costs to clear. Where a deposit sitting just under a threshold would be better placed slightly above it. Where the file would be assessed differently after the next tax return lands.
In all of those, a broker is being asked to defer their own income to give you a better outcome, which is precisely the conflict Best Interests Duty exists to manage. Ask directly whether there is a scenario where they would tell you to wait. Anyone who says there isn’t has either not thought about it or would rather you didn’t.
The connected question is whether they will tell you when your own bank is the better option. Sometimes it is, particularly where you have a long relationship and the pricing is competitive. A broker who cannot imagine that being true is selling rather than advising.
What it costs you
For a standard first home loan, most brokers cost you nothing. The lender pays a commission once the loan settles, and that arrangement is disclosed in the Credit Guide before any credit assistance is provided. It is not added to your rate and it does not come off your loan.
Some brokers do charge clients, usually on complex files, and a smaller number charge a clawback recovery fee if you refinance or sell within the first year or two. Both are legal where disclosed. Ask about both before you engage anyone. The full detail on how commission works, what it is calculated on and why clawback creates the one real conflict in the model, is on our guide to how mortgage brokers get paid.
Intellect Finance charges you nothing, on any loan type, with no fee for complex files and no clawback recovery fee. We have been based in central Penrith since 2005, with meeting rooms in Parramatta and Sydney CBD, and compare across a panel of more than 100 lenders. If you are buying locally, our Penrith mortgage broker page covers how we work across Western Sydney, and the first home buyer loans page covers the scheme detail and the documents to have ready.
Read Intellect Finance’s Google reviews
One of the checks above is verifiable proof, so rather than ask you to take our word for it, here are Intellect Finance’s actual Google reviews, live from our Google Business Profile and unedited, including from first home buyers. Read them the way the section above suggests: look for the practical detail rather than the star count.
These reviews reflect other borrowers’ experiences. They are not a promise of any particular outcome for your loan, which will always depend on your own circumstances and the lender’s assessment.
Frequently Asked
First home buyer broker FAQs
What Sydney first home buyers ask before choosing who to work with.
What makes a good mortgage broker for first home buyers?
Access to the lenders participating in the government deposit scheme, since scheme loans can only be written through one of them and that panel is narrower than the market. Beyond that: a verifiable credit licence, MFAA or FBAA and AFCA membership, clear answers about what your deposit source means, and a willingness to tell you when waiting would serve you better.
Do I need a broker who specialises in first home buyers?
Specialisation is not recorded anywhere, so any broker can claim it. What you can test is whether they work with the schemes regularly. Ask which participating lenders they use and why, and whether they would recommend one over another for your situation. Someone who does this often answers with specifics rather than generalities.
Is it free to use a mortgage broker as a first home buyer?
For most standard home loans, yes, because the lender pays the broker a commission on settlement rather than you paying a fee. It must be disclosed in the Credit Guide before any credit assistance. Some brokers do charge on complex files or charge a clawback fee if you refinance early, so ask about both. Intellect Finance charges you nothing on any loan type.
How do I check a mortgage broker is legitimate?
Ask for their Australian Credit Licence or credit representative number and look it up on the ASIC Connect professional registers. Then confirm membership of the MFAA or FBAA and of AFCA, which gives you a free external dispute pathway. Also ask for the Credit Guide, which you should receive before any credit assistance is provided.
Should I use a broker or go straight to my own bank?
Your own bank shows you one lender’s policy on schemes, valuations and assessment, and may not participate in the scheme you want to use. A broker compares across a panel and owes you Best Interests Duty, which bank staff arranging their own products do not. Going direct can still suit a simple situation with a competitive existing relationship, and a good broker will tell you when that is the case.
My parents are gifting part of my deposit. Does that matter?
It affects which lenders suit you. Gifted deposits are common and widely accepted, but the evidence required differs between lenders, and some want the funds held for a period or a statutory declaration confirming it is a gift rather than a loan. Raise it in the first conversation, because it narrows the shortlist.
Can a broker tell me what I can borrow before I start looking?
They can give you a realistic assessment, which is different from the scheme price cap and different again from formal pre-approval. Getting that early matters, because the gap between what a scheme permits and what a lender will advance catches a lot of first home buyers after they have started making offers.
How do I find a first home buyer broker in Sydney?
Start with the checks rather than the search results. Ask any broker for their Credit Guide and credit licence number, verify it on ASIC Connect, confirm MFAA or FBAA and AFCA membership, then ask which scheme-participating lenders sit on their panel. A local broker who works with first home buyers regularly will answer that last one with specific names rather than in general terms.
Does Best Interests Duty apply to my first home loan?
Yes. A home loan for a property you will live in is regulated consumer credit, so a broker must act in your best interests and give priority to your interests where they conflict with theirs. The duty commenced on 1 January 2021. It does not apply to business or commercial lending, and it does not apply to bank staff arranging their own bank’s products.
The honest bottom line
You cannot assess a mortgage broker for first home buyers on expertise alone when you have no basis for comparison, and pretending otherwise is how people end up with whoever answered the phone. What you can do is check the things with factual answers. Look up the licence. Confirm the memberships. Ask which scheme lenders are on their panel and listen for whether specific names come back. Ask what your deposit source means. Ask whether there is any circumstance in which they would tell you to wait.
Five questions, one afternoon, and you will have learned more about how someone works than any amount of reading about them. Then start early, well before you are bidding, because the most expensive mistakes first home buyers make are all made under time pressure that a conversation three months earlier would have removed.
Joseph Sukkar
Joe founded Intellect Finance in Penrith in 2005 and has more than 25 years in Australian finance. A large share of the firm’s residential work is first home buyers across Penrith, Western Sydney and the Sydney metropolitan area, which means scheme panels, gifted deposits and guarantor structures are day-to-day territory. The brokerage is family-run and charges clients no fee on any loan type. More about the team.
Sources
Federal Register of Legislation, National Consumer Credit Protection Act 2009, Part 3-5A, for the best interests obligations and the conflict priority rule. legislation.gov.au
Australian Securities and Investments Commission, Regulatory Guide 273 Mortgage brokers: Best interests duty, and the ASIC Connect professional registers for verifying a credit licence or credit representative authorisation. asic.gov.au
ASIC Moneysmart, Using a mortgage broker, on broker remuneration and what a broker must disclose before charging a fee. moneysmart.gov.au
Housing Australia, Home Guarantee Scheme and Help to Buy, including the participating lender lists and the property price cap tool. housingaustralia.gov.au
Important disclosures, general advice warning and licensing
General information only. This article is general information only and does not constitute financial, credit, legal or tax advice. It does not take your personal or financial circumstances into account. Before acting on any information here, consider whether it is appropriate to your objectives, financial situation and needs.
About the broker practices described. The questions, answers and warning signs on this page are general observations about how brokers in Australia work. They are not a statement about any particular broker, and they are not a rating, ranking or comparison of any named firm. Any broker’s own arrangements are set out in their Credit Guide.
Government schemes. Eligibility for the Home Guarantee Scheme and Help to Buy is determined by Housing Australia and the participating lender, not by Intellect Finance. Participating lender lists, price caps, income thresholds and place allocations are set by government, change from time to time and sometimes at short notice. Confirm current details with Housing Australia and check your address against the government’s property price cap tool before relying on anything.
Deposit sources. Lender treatment of gifted deposits, genuine savings requirements and funds released under the First Home Super Saver scheme varies between lenders and changes without notice. First Home Super Saver eligibility, caps, timing and tax treatment are set by the ATO and are a matter for the ATO or your accountant, not a credit licensee.
Nothing here is a guarantee. Loan approval, borrowing capacity, valuations, lender participation in any scheme and approval timeframes are determined by individual lenders and vary between them. No broker can guarantee loan approval or a timeframe.
Other professionals. Transfer duty, contracts and conveyancing belong with your solicitor or conveyancer. Tax belongs with your accountant. Personal financial advice belongs with a licensed financial adviser. Guarantors should obtain independent legal advice before signing anything.
Best Interests Duty. A home loan for a property you will live in is regulated consumer credit under the National Consumer Credit Protection Act 2009 and Best Interests Duty applies. It does not apply to business or commercial lending.
What we charge you. Nothing, on any loan type. No arrangement fee for residential, commercial, corporate, asset, SMSF or personal lending, no fee for complex or specialist lending, and no clawback recovery fee if a loan is discharged early. Lenders pay us a commission on settlement, disclosed to you in writing before any work begins.
About the reviews shown. The reviews displayed on this page are genuine reviews published by clients on Intellect Finance’s Google Business Profile, shown live via a third-party reviews widget. They reflect those individuals’ own experiences and are not a promise of any particular outcome for your loan.
Intellect Finance Pty Ltd holds Australian Credit Licence 390611 and is a member of the MFAA and AFCA. Lending criteria, fees and terms apply. Article checked 2 September 2026.
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Tell us your deposit, your income and where you are looking. You will get straight answers on which scheme lenders suit your file, what you can realistically borrow, and what to have ready. If waiting a few months would put you in a stronger position, we will tell you that instead. Penrith based since 2005, Parramatta and Sydney CBD by appointment. No fee on any loan type. ACL 390611.
General information only, not financial advice. Scheme eligibility is determined by Housing Australia and the participating lender. No broker can guarantee loan approval.
Intellect Finance Pty Ltd | Australian Credit Licence 390611 | MFAA Member | AFCA Member