The recent decision by the Reserve Bank of Australia to increase interest rates following seventeen months of unchanged, historically low rates has generated interest in the impact of this decision on the approximately 32 per cent of Australian households with mortgages. It has also prompted speculation about further rate rises in the next few months.

This Research Note updates previous research from early 2001 which estimated that the size of the average mortgage was considerably less than the figure used by some commentators at the time. It also assesses the impact of the recent interest rate rise on both first home buyers and repeat buyers who have taken out loans in the last ten years.