More RBA rate cuts are on the cards – for first home buyers that could be a blessing and a curse

The good news is lower interest rates may help more people buy homes - but they also may be faced with paying off a bigger mortgage

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The prospect of dramatically lower borrowing costs has emerged as a potential blessing and curse for Australians hoping to break into the property market, amid a brewing global trade war and competing local policies.

There are deep fears America's protectionist policy will plunge the world's biggest economy into recession and trigger a steep global growth slowdown. Economists believe the Reserve Bank of Australia will respond to this global trade turmoil with a rate cut to 3.85% at its next board meeting on 19-20 May. Financial markets are even pricing in a cash rate of 2.85% by November, or essentially cuts of 0.25 percentage points in each of the next five policy board meetings.

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