Housing affordability has increased across the nation according to the latest report released by the Adelaide Bank and Real Estate Institute of Australia (REIA), which could be great news for anyone considering taking their first home buyer or investment home loan.

Following the Reserve Bank's decision to hold off on further changes to the cash rate, this could signal a great time to get serious about investigating the home loan options available to you, regardless of your property goals.

The Housing Affordability report has indicated that the proportion of household income needed to meet home loan repayments has decreased over the past two years, reaching 28.7 per cent – its lowest point in a decade.

Real Estate Institute of Australia's president, Peter Bushby, highlighted this increase in affordability can be partially attributed to the several cash rate cuts that have occurred over the past two years.

"With the exception of the Northern Territory, all states and territories recorded improvements over the quarter, the largest in Queensland where the proportion of income required in order to meet loan repayments dropped by 1.9 percentage points to 26 per cent," said Mr Bushby in a September 4 statement.

"The variable interest rate declined 0.2 percentage points, from 6.1 per cent to 5.9 per cent in the June quarter, which is a decrease of 0.7 percentage points compared to the same time last year and the three year fixed rate fell by 0.3 percentage points over the quarter and 0.9 percentage points compared to the June quarter 2012, to 5.1 per cent."

However, Mr Bushby went on to say that first home buyer rates were still well below the average, and that further changes to stamp duty and access to superannuation and first home buyers' assistance would help to stimulate those numbers.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.