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The European debt crisis could have a negative impact on the Australian mortgage space, RP Data's Cameron Kusher has claimed.
Speaking to The Adviser, Mr Kusher said if the European markets effectively close down and banks stop lending to one another, it would be much harder for home owners to find finance, which will have a negative impact on transaction volumes.
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"When and if this happens, the Reserve Bank will inevitably cut the cash rate, which could bring some borrowers back into the market," Mr Kusher said.
"Of course, borrowers are a savvy bunch, they have seen this situation once before – borrowers raced in to buy property when the RBA cut rates a couple of years ago. Then, not long afterwards, when the economy turned a corner, the RBA raised rates.
"Borrowers have a long memory and they will be less likely to jump on the property bandwagon this time. They are a lot more cautious now than two years ago."
