The RBA has already delivered two rate hikes in February and March<\/a>, with markets now pricing in another two increases by year-end as soaring fuel prices flow through to everything from travel costs to transport and groceries.<\/p>\n A buyer purchasing a typical house across parts of Sydney, Brisbane, Melbourne and Perth could see their annual interest bill rise by more than $10,000 if two more 0.25 percentage point interest rate hikes are delivered by the RBA.<\/p>\n The biggest dollar hit will be seen in Sydney\u2019s pricey waterside suburbs, where a typical home costs several million dollars.<\/p>\n But even those at the more affordable end of the market could see their interest bill rise by thousands of dollars over the course of the year.<\/p>\n A recent borrower who put down a 20% deposit on a median priced Australian home \u2013 which reached $908,000 in March<\/a> according to PropTrack \u2013 would see their interest bill jump by $2,775 annually with two more interest rate hikes.<\/p>\n That\u2019s on top of the two rate hikes already delivered this year, taking the total annual hit to more than $5,600, compared to before the RBA began lifting rates.<\/p>\n Recent buyers in affluent beachside suburbs will see the biggest dollar hit to their monthly mortgage repayments, but lower income households will likely face greater financial pressure. Picture: realestate.com.au<\/p>\n REA Group executive manager of economics Angus Moore said more affordable housing markets were also experiencing faster price growth than the higher end of the market, meaning buyers in these regions are having to stretch their budget further to purchase a home.<\/p>\n \u201cMore expensive areas are going to see bigger increases in mortgage repayments simply because the homes are more expensive and carry larger mortgages,\u201d Mr Moore said.<\/p>\n \u201cBut these are high income areas, and in many cases those households probably have more capacity and resources to manage those costs.<\/p>\n \u201cSo it’s not the case that these areas are going to be hardest hit financially.\u201d<\/p>\n Recent buyers who have not yet built up significant equity or savings buffers now face the difficult double whammy of rising mortgage costs as the price of fuel, food and other essential goods also rise.<\/p>\n <\/p>\n Get your realEstimate\u2122 <\/p>\n Track your property’s value and unlock insights and data tailored for property owners. <\/p>\n Search an address now Mortgage Choice broker Richard Brown said many borrowers who jumped into the market late last year would be caught out.<\/p>\n \u201cI speak to borrowers every single day and through last year all of the commentary was about interest rates coming down, so most people’s expectations were that they were coming down,\u201d Mr Brown said.<\/p>\n \u201cSo will they be they caught out? Yes, definitely. People are paying hundreds of dollars or more a month now in repayments than they would have been expecting.\u201d<\/p>\n Investors get their ducks in a row<\/p>\n Market momentum in some major capital cities has started to cool as buyers wait for more clarity on how far interest rates could rise. \u00a0<\/p>\n<\/p>\n
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