An anti-homlessness campaigner is concerned more people will be under housing stress if the Reserve Bank of Australia increases interest rates tomorrow as predicted.
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Everybody's Home spokeswoman Wendy Hayhurst said it would likely spell bad news for recent first home buyers on the Border.
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"The immediate hit is to those who are in mortgage stress already," she said.
"Because I'm sure the banks will follow pretty quickly on an RBA decision and it will impact obviously those who are not locked into a fixed rate mortgage.
"I suggest it probably would be people who've recently taken out a mortgage as well, because with house prices going up, generally mortgages are pretty high."
Someone is considered in financial stress if they have less than 5 per cent of their income left after paying their normal expenses.
Ms Hayhurst said there'd be flow on effects for renters over time.
"It may not have an immediate impact, because people may be locked into a rental agreement and there may be regulations around when the rent increase can come up," she said.
"The sensitive area is when you get to the end of an agreement and you've got the option of extending, but usually paying the current market rent, so it will be more of a slow burn."
Ms Hayhurst said the rate increased would hit harder due to being coupled with increasing costs of living in general.
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