John Symond says rates don't need to go lower

The founder of Aussie Home Loans John Symond doesn't think we need cheaper official interest rates at the moment.

Talking to Ross Greenwood on the 2GB Macquarie network's Money News following the June interest rate hold, Symond also said that he doesn't think the Reserve Bank will cut anytime soon.

'I don't think they will, or they should," he said.

"The economy would have to take a hit, I believe, for the Reserve Bank to be coughing it up to drop rates even further.

"The further they go down the further they will have to eventually go up.

"I don't think we really need cheaper official rates at the moment."

Symond said that he thinks the Reserve Bank knows the interest rate drops don't have the impact it used too.

"I think we're beyond that and I think the Reserve Bank acknowledges that the interest rates lever dropping rates no long has the impact it used to because they're so low."

"I just don't believe someone would decide now's the time to go out and buy because rates have dropped a 1/4 percent.

"We've got the lowest interest rates in history, so by comparison to over the last decade the rates are just so cheap and I don't believe it's now a factor of will rates go cheaper if they do it'll give me confidence to go and buy

Talking about growing the economy, Symond suggested that hopefully once the election is out of the way the people will get back to making decision moving forward.

"We've got to find ways t grow the economy and that's the critical path now."

"You can't just say low interest rates are going to cure all our issues"

"We need to grow the economy and the sooner we get this election out of the way, hopefully the sooner the people get back to making decisions moving forward.

Talking about what the loan book looks like now, Symond suggested that there haven't been significant improvements.

"There's still a healthy level of activity in sectors of housing," he said.

"Investors are still very very subdued because of all the new lending rules and government rules.

"First home buyers are still struggling to try to get into the market."

He said that refinancers are on the increase and so they ought to, as research he did recently showed over half of all people with home loans haven't looked at refinancing in the past 10 years which is costing Australians billions of dollars.

Symond suggested competition is still as "red hot" as he's seen it in his nearly 50 years.

He concluded by suggesting there won't be another cut soon despite economists beliefs, but potentially some months away.

"Im hoping it won't happen because I'm hoping the Australian economy does better than it has and it doesn't go backwards because every time rates go down, it's a measure of the health of our economy.

"The further down it goes, the further the state of our economy goes down hill and we don't want that," he added.

You can listen to the full interview here.