Despite official interest rates remaining steady at 1.5 per cent, there are still concerns about future rate movements and the broader impact on the economy, as major lenders have dramatically tightened their lending criteria, according to 1300HomeLoan Managing Director, John Kolenda.

"It is unchartered territory and with the vast amount of pressure being applied to the banks as a consequence of the Hayne Royal Commission, we are more than likely to see rates on hold for a considerable time," he said. 

"Over the coming months, the impact of the tighter lending conditions will become evident and flow through to the property market. There are a number of dynamics at play, all of which present headwinds for lenders, borrowers, the property market, employment, economy and future rate direction," he said.

By maintaining its holding pattern, the Reserve Bank of Australia (RBA) has allowed mortgage holders to feel comfortable and relaxed in what is a confusing lending landscape. 

"Surprisingly, we have seen some heavy discounting on owner-occupied and principal and interest loans from the majors as they attempt to secure lending volumes through a consequence of a tougher lending environment," he said. 

"Borrowers should take advantage of this as it translates into thousands of dollars in savings. Clearly there has been a move away from investor and interest only loans which has the banks focused on the other product segments.

"All these changes in some way will flow through the property market," he said. 

REINSW President Leanne Pilkington said the fundamentals have remained mostly static, meaning the RBA has no reason to currently adjust interest rates.  

"There's a strong argument to leave the cash rate unchanged for the forseeable future," Ms Pilkington said.

"Given the downward slide in property prices, the marked drop in investor lending and other macro challenges to the economy - especially when the banks cannot be trusted not to hike rates independently, there is no need for the RBA to act," she said.

See also: 

New RBA report shows zoning regulations worsen affordability pressures

Interest rates on hold until 2019: REINSW

Interest rates on hold: what does it mean for the property market?