Meanwhile, some borrowers are being forced to reapply for home loans as rate rises continue.

Data complied by Canstar for ACM shows just how much extra Canberrans can expect to pay on their mortgage, if the 50 basis point rise is passed on by the banks in full.

Based on Canberra's median house value of $1,065,317, Canberrans with a current monthly repayment amount of $3875 would be forking out $243 more each month, if the rate rise is passed on.

A typical Canberra unit owner with a monthly repayment of $2290, will likely be paying $144 more each month.

Modelling from Rate City also shows a homeowner with a $500,000 loan size would likely pay an extra $137 per month from June, while a $750,000 loan size would be facing an addition $205 per month.

The rate rise is expected to add further pressure to households already grappling with the soaring cost of living.

Recent first home buyer Jacinda King said she may need to rein in her discretionary spending and work more overtime if interest rates rise significantly in the coming months.

During her eight-month property search Ms King had to reapply for her pre-approval after interest rates rose for the first time since 2010 in May.

"I'd had a pre-approval for a while and then obviously the interest rates rose the first time," she said.

"I had to actually find a different lender to borrow money from to make it cheaper for me."

Ms King worked with her mortgage broker, Nitish Kumar from Loan Market in Canberra, to secure a second pre-approval, one day before the June interest rate rise. For her purchase in Googong, she opted for a split loan, which is a combination of fixed and variable rates.

"My first [repayment] comes out in two days time because I've only been in my house for about a month now and I got a letter the other day from my lender that said my variable interest rate was going up," Ms King said.

"I'm definitely glad that I fixed [part of] my interest rates. It's a fixed loan for two years, so at least I know that's not going to change and that's a bit of assurance for me."

Depending on how fast interest rates rise, Ms King said she may have to adjust some of her spending habits. She said the added costs of electricity and groceries will also be factored into her budget.

"[I'll] probably have to not spend as much on my gym clothes, probably try and do some more overtime at work if it's available. But yeah, I'll just try and look at my spending for the month," she said.

New borrowers are already feeling the impact of rate rises on their borrowing capacity, Mr Kumar said.

"With every rate increase, their borrowing capacity drops a little bit," he said.

"A 50 basis point increase today is going to drop most people's borrowing capacity by 5 per cent. So if you're pre-approved for $1 million, you can only [borrow] $950,000 after that rate increase today.

"It's a reasonable difference to people's borrowing capacities."

Mr Kumar said buyers need to check in with their lender regularly ahead of bidding at an auction or placing an offer on a home.

"We're finding people getting caught out because they think their loans are pre-approved with the bank, for example they're not touching base with the bank again before they go to an auction and then when they go back for an approval, they're finding their borrowing capacity reduced from where they were pre-approved," he said.

"There's some banks honouring the pre-approvals for the full 90 days ... but some banks want to reassess the pre-approval on the higher rates."

CoreLogic research director Tim Lawless said many households will be feeling the pinch, particularly with future interest rate rises on the cards.

"Indebted households are in the grip of a tightening pincer movement, where inflation on essential goods such as fuel and food, together with the rapidly rising cost of debt, are squeezing balance sheets," he said.

"Households are increasingly sensitive to rate hikes due to record levels of indebtedness. The RBA is aware of this, noting the household sector is likely to be the source of ongoing uncertainty, especially spending behaviours as households make cut backs on non-essential spending to focus on debt servicing and non-discretionary goods such as food and fuel.

"With inflation likely to remain stubbornly high, the outlook for interest rates is for further rises throughout the rest of the year and into 2023, adding additional downside risk for housing demand."

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