The currently low mortgage rates are expected to fall even further due to the slowing economy.

Shane Oliver, chief economist with AMP Capital Investors, said he expects the Reserve Bank of Australia (RBA) to bring the cash rates down all the way to 1.5%.

"We were looking at a low of 2.25% but now I think rates are going to go down even lower, to 1.5%. Assuming the banks will pass this rate cut in full, this would bring down the standard variable rate to 4.15%."

However, Oliver said that a full pass through is highly unlikely and he's expecting the banks to pass on 80% of the rate cut, as they have done in the past. This would then bring the mortgage rate down to 4.5% - an all-time low.

"This is a big improvement in affordability. However, buyers have to be cautious and borrow conservatively so that they won't face the risk of being unable to meet their repayments when interest rate eventually rises again."

Both ANZ and Westpac are forecasting the RBA to cut interest rates by 0.25% to 3.0% when it meets on 7 April.

Related: Home Loan Calculator