Three-quarters of first-home buyers are planning to buy a house as lower interest rates and cheaper dwellings make their dream more affordable, a survey says...

The 2009 Mortgage Choice survey of 1,012 first homebuyers shows 76 per cent of respondents currently want to purchase a house, up from 54 per cent a year before, with 16 per cent intending to buy a flat.

Mortgage Choice senior corporate affairs manager Kristy Shephard said falling interest rates, stable house prices and the first home owner grant boost had made property more affordable for possible buyers.

"Australians who are about to buy their first home appear to be entering the market with more confidence than their predecessors," Ms Shephard said.

"It's great to see our survey results showing first homebuyers-to-be are considering all of their options when it comes to owning their own place - whether it is a short-term savings plan to boost their deposit, making sacrifices to achieve their long-term goals, or buying with a partner to share the responsibility."

Since September, the Reserve Bank of Australia has lowered official interest rates by four percentage points to a 45-year low of 3.25 per cent.

In mid-October, the federal government doubled the first home owners grant for established dwellings to $14,000 and tripled it to $21,000 for newly built houses.

Ms Shephard said while loan repayments could rise considerably in time, houses had become more affordable recently.

"Home ownership, for many, is at present a realistic achievement," she said.

Eight per cent of survey respondents intending to purchase before the end of 2009 indicated they would rely just on the government's grant, while another eight per cent had not started saving but would do so before buying.

The time to repay a mortgage concerned 52 per cent of first home buyers, while 47 per cent were worried about not the loan repayments, the survey said.

Fewer respondents said they would make sacrifices to buy a home from a year earlier, 71 per cent from 91 per cent.

Reducing spending was the greatest form of sacrifice, 93 per cent, followed by forgoing a holiday, 59 per cent.

Ms Shephard said some sacrifices would have to be made to own a home.

"The number of people planning to sacrifice is considerably down on last year's figures might indicate first homebuyers-to-be are in a better financial position than those before them and are taking advantage of the first home owner boost and improved market conditions as a means to get their foot in the door sooner," she said.

SOURCE: aap