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 1012 first homebuyers shows 76% of respondents currently want to purchase a house, up from 54% a year before, with 16% intending to buy a flat.

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

The Age, The Australian