It's being suggested first-home buyers could be in for a shock over increasing interest rates

A fall in the last quarter has seen unemployment drop to four percent.

As a result BNZ and ANZ, among others, are predicting the Official Cash Rate will rise three times before the end of the year, to one percent.

ANZ's also forecasting two more increases in the first half of next year, to 1.5 per cent, which would be the highest since mid-2019.

Mortgage broker Sue Tierney says younger people who've just recently bought homes should prepare themselves.

She says young couples who plan to have children in the future, will need to plan to ensure they can afford to.