Canberra home owners are preparing for another increase in their mortgage repayments, with the Reserve Bank expected to raise the cash rate on Tuesday.
Modelling by Canstar shows Canberrans could pay more than $100 extra each month, if the cash rate was to rise by 25 basis points to 0.6 per cent.
A home owner with an 80 per cent variable loan on a median Canberra house, currently priced at $1,070,403, would pay $118 more per month, taking their monthly repayments to $3807.
Financial adviser Nick Lucey, director of Nest Advisory, said home owners had been making moves to fix their rate following the cash rate rise in May.
However, it may be too late.
"I think a lot of people are thinking about fixing but I'd almost say it's a bit late now because the banks have already factored interest rate rises into their fixed loan deals," he said.
"So depending on the bank that you might go with ... you might be paying a premium of 1 to 1.5 per cent to fix for two years.
"If you're trying to beat the bank on interest then you're really betting that the RBA is going to raise rates quite significantly and quickly ... it's like paying an insurance premium to protect yourself."
For prospective home buyers wanting to fix their interest rate, Mr Lucey warned new borrowers may need to pay a "rate lock" fee.
"Something that a lot of people can get caught out with is you might choose to apply for a fixed [rate] now but without paying rate lock, which lots of different banks offer, you don't actually get the rate that you applied for today, you will get the fixed rate at the time of settlement," he said.
"It's something kind of new that most people haven't been aware of or thought about before because we're sort of entering this new phase of rising interest rates."
In a survey of 28 experts and economists by comparison website Finder, 24 panellists predicted the cash rate would change on Tuesday and eight forecast at least two cash rate increases before the end of 2022.
Canberran Hayley Whatman has been working towards her goal of home ownership since her teens and said interest rates were part of early discussions with Mr Lucey, her broker.
"I set myself a goal ... to acquire my first property by the time I was 21," she said.
Ms Whatman achieved her goal, signing the contract for a one-bedroom apartment in Canberra's north last year just before she turned 22.
Research, engaging with a mortgage broker and real estate agents for advice and budgeting were all part of her plan to get into the property market.
"I worked two jobs and I also still do study at the same time. So it's just managing that and putting myself in the best position," she said.
She said the fact interest rates were at an all-time low before May and were anticipated to rise was a "big consideration" in how she structured her loan.
"I went with a fixed rate for my loan which has put me in a pretty beneficial position especially with the interest rates now, that have already risen from when I went through all my finances and things," she said.
Future rate rises aren't cause for concern for Ms Whatman, rather, she considers managing her finances a "hobby".
Now settled into her new home, she plans to reassess her mortgage rate regularly and is already mapping out her next purchase.
"I do endeavour to purchase another property within the next couple of years as well, as an investment, so that will be an ongoing hobby for me to, I suppose, look at the interest rates and how they're fluctuating and what the market predicts and how I can utilise that," she said.
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