Interest rates are set to reach a nine-year high after the Reserve Bank Australia handed down a sixth consecutive cash rate hike on Tuesday.
The RBA lifted the cash rate a further 25 basis points to 2.60 per cent, up from a record low 0.1 per cent at the start of May.
Figures compiled by comparison site Canstar show that in Newcastle and Lake Macquarie, where the median house price is $856,513, homeowners could pay an extra $107 each month on their mortgage as a result of the rate rise, with their monthly repayments increasing to $3882.
The calculation is based on an 80 per cent loan over 30 years.
The cash rate is now the highest it has been since July 2013.
Financial planner Kyle Griffiths bought a new home in The Junction in mid-May, less than two weeks after Australia's first cash rate rise in 11 years.
When speaking with The Newcastle Herald regarding interest rate rises in July, Mr Griffiths said he had undertaken a stress test against higher interest rates when securing his mortgage with the expectation that the cash rate could not remain as low as it had in recent years.
He said the test positioned him to cope with further rate rises, including the latest round this month.
"The rate rise doesn't affect me too much at the moment because we did a stress test with my mortgage broker before we bought this," Mr Griffiths said on Tuesday.
"We stress tested up around that six per cent mark, so I knew that even if it did go up that high, I could afford it within my budget."
Mr Griffiths advised those facing mortgage stress to create a budget and consider speaking with a mortgage broker to find the best rate.
"They might find that they're spending money on things they don't really value and it might be easy to rejig things and come up with some more cash to fund these interest rate rises," he said.
"Concentrate on what you can control and make sure you're on the right path."
He said investment property owners are among those seeking financial advice in the current climate.
"People are nervous around how much it is going to cost them with owning an investment property moving forward," he said.
Australia's official interest rate had been declining for 11 years before the first cash rate hike kicked in May this year.
It is the fastest increase in interest rates since the mid-1990s.
CoreLogic on Monday reported a further fall in house values, with figures revealing a fall of 1.9 per cent in Newcastle and Lake Macquarie in the month of September.
