Canberrans will begin paying more on their mortgage repayments this month following the Reserve Bank's decision to increase the cash rate to 0.35 per cent on Tuesday.
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Based on the median dwelling values across each capital city, CoreLogic has calculated how much extra people can expect to pay on their mortgage repayments.
In Canberra, where the median dwelling value is currently $947,309, home owners could pay $99 more each month as result of the rate rise, taking their monthly repayments to $3090.
The calculation is based on an 80 per cent loan on the median dwelling value, assuming the person was previously on an average variable rate of 2.49 per cent that has now increased to 2.74 per cent.
The data also forecast how future increases to the cash rate would impact homeowners. The same Canberran would pay $3399 per month on a 3.49 per cent variable interest rate or $3835 per month on a 4.49 per cent variable interest rate.
Many Canberra buyers had been anticipating a rate rise, with some already factoring it into their future property purchases.
The banks have begun responding to Tuesday's announcement, with the big four - Commonwealth Bank, ANZ, NAB and Westpac - confirming they would pass on the cash rate rise in full and increase their variable home loan rates by 25 basis points.
What does it mean for the housing market?
CoreLogic research director Tim Lawless said higher interest rates were expected to add downward pressure on housing growth rates, which have already begun losing steam in some markets.
"The extent of any housing market downturn depends on how high and how fast interest rates rise, but also a variety of other factors," he said.
Mr Lawless said a tight labour market would help to keep mortgage distress and forced sales at relatively low levels, while a rise in fixed term mortgage lending may also shield home owners.
"Through the middle of last year, 45 per cent of housing loans were funded on fixed rate terms, temporarily shielding those borrowers from rate hikes," he said.
"While they will need to refinance down the track, by that time labour markets are likely to have tightened further and income growth picked up."
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Mr Lawless said regions with a higher portion of investors, who generally pay higher interest rates than owner occupiers, may experience a downturn sooner.
"Past research from the RBA has pointed to 'high-end' housing markets with higher investor concentrations being more sensitive to changes in interest rates in the short term," he said.
"This may be why Sydney and Melbourne markets are already seeing price declines, with more affordable housing markets expected to eventually follow the downward trend."
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