How would a 4.25% interest rate impact you?

While every expert surveyed by Finder this month predicted interest rates would stay on hold this month, many are expecting to see rates rise next year.

Of the 33 respondents, 30 think interest rates will begin to increase in 2015, with just one – Andrew Wilson of Domain Group – predicting the next move will be a decrease.

A third of the experts surveyed predict interest rates will peak at 4-4.25% within the next three years.

The overnight cash rate was last at 4.25% in April 2012, after dropping from 4.5% in November 2011.

When rates first dropped, NAB offered its standard variable lending rate at 7.47%, while Westpac and ANZ both cut their standard rate to 7.55%.

Currently, ANZ offers its standard variable loan at 5.88%, with a comparison rate of 5.98%. For a $500,000 loan, a borrower is likely to pay $4,025 per month, with $272,685 interest payable.

If the rate was bumped back up to 7.55%, monthly repayments would likely increase by $469 per month to $4,494, with total $362,770 interest payable.

Finder's Michelle Hutchison says if the cash rate hits 4%, borrowers with a $300,000 loan will need "a buffer of at least $300 per month".