New figures from the National Australia Bank (ASX:NAB) showed a 16% increase in lending to first home buyers since February compared with the same period last year, while lending to all owner occupiers grew 32%, the financial services company said in a statement Tuesday.

According to Denton Pugh, NAB executive for home lending, the bank's recent reductions in both fixed and variable home lending rates are attracting more first-time buyers and a broader range of homebuyers back into the market.

Victoria is at the forefront of first-home buyer activity, seeing a 28% increase, with Western Australia and Queensland close behind, the bank said.