$200 monthly home loan rise tipped by Access Economics

• . Another whole percentage rise coming
• . Survey:46% unhappy with their bank
• . Inflation pressures: income rising too fast
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HOME loan borrowers will have to cough up an extra $200 in monthly mortgage repayments by the end of this year or early next, according to a leading economic forecaster.

Though the official interest rate is all but assured to stay on hold in February, Access Economics predicts variable mortgage rates will rise one percentage point by late 2011 or early 2012, reported the Herald Sun.

This would bring the average standard variable rate to 8.8 per cent, and lift monthly repayments on a typical $300,000 home loan to $2476 from $2275.

The Reserve Bank's string of aggressive rate rises last year has helped cool Australia's underlying inflation to the slowest in a decade.

While the inflation rate is "smack in the middle of the Reserve Bank target band", Access Economics warns "that good news will soon pass".

"Don't get your hopes too high that the Reserve Bank has already done its dash on interest rates for this cycle - capacity is too tight, income is rising too fast, and underlying inflation is already close to bottom," the forecaster says in a report.

The RBA board meets on Tuesday for the first time this year but after this week's much-weaker-than-expected inflation report - and as businesses and government continue to count the cost of the Queensland flood crisis - it is widely expected to keep rates steady.

Access Economics' forecast coincides with the release of research indicating mortgage exit fees are the biggest barrier stopping home loan customers switching banks.

In a poll carried out for ING Direct's Financial Wellbeing Index, 65 per cent said exit fees and switching costs were the greatest deterrent to refinancing.

The findings come amid attempts by the Federal Government to bolster competition in the banking sector, with a ban on exit fees among proposed measures.

More than 1000 households took part in the survey - and almost a third said there were insufficient differences between lenders to make switching worthwhile.

The proportion of home buyers who were unhappy with their loans clocked in at 47 per cent, compared with 46 per cent who said they were satisfied.

ING Direct chief Don Koch said the findings indicated frustration was building among home owners.

- with Peter Taylor.