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Experts mixed on impact of higher interest rates

Two schools of thought are emerging regarding how an inevitable increase in interest rates will impact Australian property markets, with some experts predicting a looming disaster for borrowers while others say a likely minor increase to the cost of finance won't have a material impact.

House key ring sitting on Australian currency
A 1 per cent increase to the average mortgage will cost borrowers around $300 more per month. Photo: Shutterstock

Two schools of thought are emerging regarding how an inevitable increase in interest rates will impact Australian property markets, with some experts predicting a looming disaster for borrowers while others say a likely minor increase to the cost of finance won't have a material impact.

While the Reserve Bank of Australia maintains it doesn’t expect to shift the official cash rate from its historic low of 0.1 per cent until 2024, interest rates …