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Another major industry player has supported the view that interest rates are set to remain at or near record lows.
Smartline Personal Mortgage Advisers believes the current environment will continue for at least the next 12 months, according to executive director Joe Sirianni.
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“All the indicators are that there will be a relatively long period of historically cheap variable rate home loans,” he said.
“Even if rates do rise in early 2015, predictions are that this will be only a 0.25 per cent increase, which will still mean rates will be at some of the lowest levels ever seen.”
The Reserve Bank of Australia recently revealed “that the cash rate could remain at its current level for some time if the economy was to evolve broadly as expected”.
Westpac also forecast that the cash rate would remain at 2.5 per cent throughout 2014.
Meanwhile, Mr Sirianni urged Australians not to take the current economic environment for granted.
“With variable rates around 5 per cent per annum, it is relatively easy to find an investment property that provides you with a rental return that is greater than your interest cost,” he said.
“Those with an owner-occupier property have the opportunity to make some serious inroads into their outstanding mortgage balance by paying off extra while rates are so low.”
