First homebuyers are making the most enquiries when it comes to housing finance, according to Loan Market.
The company's chief operating officer, Dean Rushton, says first homebuyer enquiries were at the highest level in two years following a fall in activity when the First Home Owners Boost ended in 2009 and after interest rate hikes in 2010.
First homebuyers represented 51 per cent of total enquiries to Loan Market around the country.
"After a few years of hibernation, first home buyers are back and are now the dominant section of the market for enquiry," Rushton says.
"A more favourable interest rate climate, helped by the latest RBA rate cut, is one reason first home buyers have re-emerged."
By state and territory, Tasmania saw the highest number of enquiries with 71 per cent, followed by Queensland with 54 per cent, Victoria with 53 per cent, the ACT with 50 per cent, South Australia with 48 per cent, Western Australia with 44 per cent and the Northern Territory with 41 per cent.
In NSW, the abolition of stamp duty concessions for first homebuyers from the end of 2011 had helped activity, says Rushton.
"The softer real estate market is another encouragement for first time buyers if they are in a position to be active in the market."
"We're finally starting to see signs of optimism and more confidence from that segment of the market. And predicted further rate cuts from the RBA would help to build that confidence."