First-home buyers need more than a rate cut, banks say

A rate cut has led to an increase in mortgage applications, making it harder to enter the market. (Joel Carrett/AAP PHOTOS)

First-home buyers are still struggling to get into the market despite a surge in property interest after recent rate cuts.

The Reserve Bank in February announced a 25 basis point cut in the official cash rate - the first reduction in more than four years - saving the average borrower about $100 per month on their home loan.