Tuesday's cash rate rise - the sixth consecutive increase - will add further pressure for some Canberra families who are already bearing the weight of cost of living hikes.
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The Reserve Bank of Australia announced an increase of 25 basis points taking the official cash rate to 2.6 per cent.
According to comparison site Canstar, Canberra mortgage holders could be hit with a $253 increase to their monthly repayments, based on the current median house price of $1,009,575, if the increase is passed on in full by their bank.
It's even more of a hit for those who purchased prior to the first rate rise in May, who may already be forking out $1117 more on their monthly repayments, based on Canberra's median house price in April.
For Leisa and Ian Williams, who live in Canberra, Tuesday's rate rise could become yet another setback in their plans to build a home for their son Justin, who was diagnosed with autism at two years old.
Their goal is to build a house for Justin to live independently in, as well as a granny flat in the backyard that would provide accommodation for carers and families living with disabilities.
The family is building the property in Swansea, in regional NSW, which they said is close to Justin's church and more affordable than the ACT.
Mrs Williams said increases to their loan repayments, along with soaring building costs, were threatening the completion of the project.
"We've had to take everything we can out of our own home in Canberra for this but we actually now don't have the money for the granny flat because everything that we had set aside and everything that the builders had actually even quoted for us has blown out by $150,000, to more like $200-grand now," she said.
"We had it all budgeted out ... but it's become harder to actually do because we now have the rising interest rates."
No respite in sight for mortgage holders
In his statement on Tuesday, RBA governor Philip Lowe said the board expected "to increase interest rates further over the period ahead".
Canstar has warned variable interest rates could climb to 6.48 per cent in 2023, with the big four banks forecasting a cash rate above 3 per cent by the year's end.
Westpac is tipping the cash rate to be as high as 3.6 per cent by February 2023.
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Mrs Williams said future rate rises are a concern for the build, which they're taking "one day at a time".
The family has launched a crowdfunding campaign to help raise more funds for the project, which they hope will provide respite for other families in the future.
"Every parent wants their child, whether they've got a disability or not, to have a meaningful life but particularly people with disabilities, we have to fight that much harder for them to have one because they also need that correct accommodation," Mrs Williams said.
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