In a recent poll by the University of Sydney, almost half (43%) of the 16,000 respondents found housing affordability to be a serious issue. Housing affordability was up there with solving climate change for future generations, reducing our environmental footprint and preventing human rights abuses.

A report by Australians for Affordable Housing(AAH) found the cost of mortgage repayments has increased by 41 percent since 1984.

If these results don't show that Australia has a serious housing crisis, I don't know what it will take for the government to help fix the problem. Mass protests? Thousands more living on the streets? Mortgage delinquency rates hitting the roof and thousands are thrown out of their homes?

The problem will only get worse if something isn't done soon to create more affordable housing. Hopefully we won't need to wait until the above scenarios occur before we see some change.

What about rate cuts?

There's a reason why the last two interest rate cuts have had little, if any, impact on activity to Australia's property market. They clearly aren't enough to help our nation's housing affordability crisis.

I'm not saying that cutting rates further is the answer. While it might provide some relief for existing borrowers with a variable home loan, it does little to draw in new homebuyers. First time buyers generally look at property prices before working out their monthly mortgage repayments. And if the cost of a home is a couple of hundred-thousand dollars out of their reach for example, it will take more than a rate cut to change affordability.

We saw the Reserve Bank slash the cash rate by 50 basis points in May and another 25 points in June. These rate cuts weren't passed on in full by most lenders to variable home loan customers. From a first home buyer's perspective, this brings a flood of apprehension about entering the property market and taking on a mortgage as lenders have made it look like home loans are more expensive than they should be and lenders can't be trusted with setting fair interest rates.

With this in mind, why would anyone bother buying a home, right? Surely it can’t be that bad if so many Australians still walk the plank every month by taking on a new home loan, over the pool of sharks waiting for them to fall into the water.

There is a reason why the property market is still active, albeit at a slower pace than previous years. It’s because it is still possible for many Australians to buy a home if they are prepared.

There are a few golden rules that borrowers need to know before entering the home loan market for the first time. Once you realise these important truths you shouldn't need to feel as scared about taking on a home loan.

1. Don’t start your home loan hunt too late: too many home buyers get caught up in the fun of looking at pretty homes and leave their home loan research to the last minute when they’ve found a property they want to buy. Many often seek a mortgage broker to handle their financial decisions, which can mean they will potentially miss out on negotiating with a lender and getting a better value deal. Start researching the mortgage market before you start your property hunt, which will help you determine how much you can afford to borrow, using online calculators (there’s a good one on RateCity and use comparison sites like RateCity to find a good value home loan to suit your needs.

2. Don’t be afraid, be prepared: if you were thinking about choosing a variable rate home loan – which most borrowers in Australia do – don’t let the media hype about lenders cashing in on their home loan customers scare you into choosing a fixed home loan. Even though there’s nothing wrong with fixed home loans if you’re concerned about rising interest rates, and there are good value fixed deals currently available, our research shows you will save by fixing only half the time. It’s true that most lenders haven’t passed on the full rate cuts over the past year, but borrowers shouldn’t be focused on how much they are missing out on, but rather be prepared for rate increases. Lenders will expect you to have a buffer of at least 2 percent, which is about $400 per month for a $300,000 mortgage. It’s a good idea to add this to your mortgage so when rates rise you will be prepared with a surplus of cash to use.

3. Review your mortgage every 12 months: the banking reforms have made it more affordable for many variable borrowers to switch lenders since the banning of exit fees in July last year. So if you have more than 20 percent equity and your home loan was taken out after July 2011, you should take advantage of home loan offers every year or so, and review what features and services you need.