A 1% increase in interest rates will cost Australian homeowners $13 billion more in repayments according to Opposition Treasury spokesman Jim Chalmers.

He says interest rate rises are inevitable.

“They can’t and won’t be at or near zero forever, no matter who wins office,” Chalmers says.

“If rates rise by one percentage point, which many of the banks expect over the next year, owner-occupiers could be paying $13 billion more in interest each year.”

The upcoming Federal election is expected to dampen the hot property market in the coming months.

PropTrack’s director of economic research, Cameron Kusher predicts there will be fewer auctions and listings in the coming months as a result of seasonal interruptions including Easter and Anzac Day as well as the election.

Kusher says with the labour market strong, an interest rate rise is starting to look more likely.

“So, there is a sense buyers and sellers need to get in now ahead of a rate rise.”