VANCOUVER - The same things that are squeezing first-time homebuyers these days are creating a boom for mortgage brokers.

With interest rates climbing and new rules that crack down on who qualifies for a mortgage, first-time homebuyers are having to look harder for their first mortgage, meaning brokers' services are in demand, members of the profession say.

"Consumers and borrowers may not know the impacts of the changes so they'll need to use the services of someone who understands what the rule changes mean," said Jim Murphy, president of the Canadian Association of Accredited Mortgage Professionals.

The new rules, which come into effect April 19, will require homebuyers to qualify for a standard five-year, fixed-rate interest rate regardless of whether they plan to choose a lower-rate variable mortgage.

As well, rental property income is not being given the same weight when qualifying for a mortgage.

Meanwhile, interest rates are on the march upward, pushing young, first-time buyers to turn first towards a mortgage broker, rather than booking an appointment with their bank.

An annual CMHC mortgage survey released in 2009 reported about 25 per cent of all mortgages in the previous year were conducted through brokers.

The online survey of 2,507 mortgage consumers showed an increase in broker usage by first-time home buyers of nine per cent between 2007 and 2009. For purchasers aged 25 to 34, the broker share was 42 per cent of all loans.

The numbers are expected to rise as the tighter qualifying rules push first-time homebuyers to look wherever they can for the best deal.

The trend toward mortgage brokers may be because new homebuyers have grown-up in a different era than their parents did, said Patrick Mulhern a Vancouver mortgage specialist.

"The younger generation is a little more worldly. They don't have the same sort of loyalty to their financial institutions that the older generation does."

Buyer Leslie Urquhart said buying her first home was a horrifying ordeal.

Urquhart, 34, began her six-month home shopping odyssey with one goal-- to get into the market. But she quickly realized that was easier said than done. Increasing budgets, pressure from her realtor to commit to a place and finding a mortgage made her wonder what she had got herself into.

Urquhart's realtor urged her to use a broker, saying a broker could find a better interest rate than her bank.

The broker did find a cheaper rate, but it was still too high for her to manage.

Although brokers can offer market expertise, Bob Dugan, the chief economist for the Canadian Mortgage and Housing Corporation, said it's unlikely they can offer any more guidance than the banks.

"I don't know if people going to a broker are getting better advice than I did 1/8by going through a bank 3/8," he said.

Russ Husum, a Vancouver real estate agent, said his clients have had success dealing with mortgage brokers because the brokers have access to a menu of options a bank may not have.

Brokers, who collect their fees from the lender, do not work exclusively with any one bank. This allows them to shop around for the best deal.

Husum noted that though borrowers may have dealt with one bank their entire life, the bank is bound by its own lending rules.

While someone's traditional bank might decline them a mortgage loan, another lender may say yes.

"The beauty of an independent mortgage broker is they have access to all the banks," Husum said.

Sometimes a better rate elsewhere can be used as leverage by the borrower at their own bank.

"If the bank thinks they're going to lose you, they'll often match it," he said.

But Urquart was left somewhat cold by the experience with her broker.

She said she was left in the uncomfortable position of putting her trust in someone she had only spoken with over the phone.

"I never met with him, it was very impersonal," she said.

Although she eventually found a condo in for $60,000 more than her original budget, she advised other first-timers to do their homework and prepare themselves for changes.

"It's a learning process that's so scary," she said. "No one can ever tell you what it's going to be like."

In the end, Urquhart accomplished her goal of getting into the housing market, but she won't be living in her new place as she had hoped.

Instead, she will become a landlord, renting the place out while living in a basement suite at her parent's house where rent is cheap.

"At least I'm in the market and I'm learning," she said.