Horsham residents will need to pay more off their mortgage each month if the banks follow the Reserve Bank of Australia's rate rise announcement and pass it on to their consumers.
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The Reserve Bank of Australia (RBA) lifted the cash rate by 0.25 percentage points to 0.35 per cent, in the first increase since November 2010.
Despite the rise, Harcourts Horsham director Mark Clyne said it would have a "minimal impact" on the Horsham property market.
"I think interest rates would have to get above six percent to cause any kind of mass damage," Mr Clyne said.
"We don't expect the impact there."
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Mr Clyne said a rise in interest rates was a reaction to external forces.
"The market forces determine interest rates and sadly energy costs have gone up, which has had a fair impact and a few other factors, just things out of an ordinary person's control," he said.
The timing of the announcement in the middle of an election season has lead to heightened tensions, according to Mr Clyne.
"People are certainly talking about it... politicians are obviously belting each other round prior to an election and they want to make it sound like it would be diabolical if the other party wins."
Horsham real estate agent Wes Davidson said that a rise in interest rates was inevitable.
"We're not immune to the world's inflationary pressures," Mr Davidson said.
"There's a lot of factors, it makes sense (but) there's no concern from my end."
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Mr Davidson said that lenders would ideally have made educated choices in choosing who to lend to, so any changes in interest rates can be absorbed.
"Since the banking Royal Commission, there's a lot more scrutiny on lending... there's been a lot more thoroughness in checking people's ability to pay, should interest rates go up," he said.
APRA, or the Australian Prudential Regulation Authority, provide a degree of protection for those with mortgages, Mr Davidson said.
"APRA has a very good track record of prevent major problems in the market from people over-committing," Mr Davidson said.
"Our society as a whole is pretty well-protected compare to some other economies around the world."
Mr Davidson encouraged those seeking to take out a loan to seek financial advice beforehand.
"The ramifications of making the wrong decision can be extremely costly, and the last thing you want to do when money gets tight is panic," he said.
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Horsham residents have already felt the inflation burden in recent months with everyday expenses such as petrol prices rising astronomically and RBA governor Mr Phillip Lowe said it comes hand in hand with the cash rate rise.
"The economy has proven to be resilient and inflation has picked up more quickly, and to a higher level, than was expected," Mr Lowe said.
"There is also evidence that wages growth is picking up. Given this, and the very low level of interest rates, it is appropriate to start the process of normalising monetary conditions."
Mr Lowe said further increases in interest rates would be necessary over the coming months.
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