Australia’s finance and mortgage brokers will play a key role in helping first home buyers and single parents navigate the red tape and processes required to access new incentives announced in the federal budget, according to the finance brokers’ national peak body.

Managing director of the Finance Brokers Association of Australia Peter White AM said the announcements, which included the expansion of the First Home Loan Deposit Scheme and First Home Super Saver Scheme along with the introduction of a Family Home Guarantee to help single parents, were “great news and will be a turning point in many lives”.

However he also warned that “as with all government programs, the devil is always in the detail and the process is rarely simple”.

“Only finance brokers understand the market and the programs intimately, and as soon as the details are known and rolled out, we will educate ourselves on every aspect including eligibility requirements and processes.”

However he cautioned that some potential borrowers may still be disappointed when they consider the big picture.

“Brokers have a responsibility to adhere to the Best Interests Duty and responsible lending guidelines, and we must ensure that borrowers are prepared for when interest rates rise.

“In markets such as this home prices are increasing, and with deposits of only two per cent, it won’t take much of a drop in property values to create situations of negative equity, and this will affect those who can afford it least.”

While the 44-year industry veteran said his advice is to never leave it too long to enter the property market as prices will always keep rising in the long term, he also encouraged those thinking of taking advantage of these schemes to save as much deposit as possible.

“When borrowing it’s vital not to get caught up in the moment and look at the long term.”

Mr White said finance brokers are available and able to help borrowers understand the new initiatives and the way to access them.