It’s expected home buyers may face higher mortgage payments as soon as June due to a run-up in inflation forcing the Reserve Bank to raise official rates.

Rates could be above 2 per cent within a year.

Economic Advisor at Judo Bank Warren Hogan told Jim Wilson, “It looks like they’re going to have to go up now”.

“We’re at 30-year lows for the amount of money we have to dedicate to paying back mortgages.

“This is a big challenge for businesses and households.”

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