Aussie Home Loans executive chairman John Symond expects mortgage rates to stay low for the next 10 years, ensuring that the property market stays robust.
“I am expecting low rates for a decade,” he says. “I’m not saying they won’t go up, but we won’t see 6% to 7% interest rates for a decade plus.”
Symond says mortgages generally are in a good shape, with many people still making the same repayments as they did when interest rates were 8%.
“The average mortgage holder is two years in front,” he says.
“We took a survey and the net asset value of all the areas where we have loans … there was 40% equity. In NSW, it was 50%.”
Symond says there is the potential for 10% to 15% price growth in some capital city markets during the next three years, as long as employment remains steady.