Interest rates could take off after the Reserve Bank raised the Official Cash Rate up to a six-year high.
It is promising to go higher still in a bid to reel in inflation, which is at a 30-year high.
The benchmark rate has been raised by half a percentage point to 2.5 percent.
First Home Buyers' Club director Lesley Harris says as the official cash rate rise hits home loans there's less income for people to spend on the essentials, and wages are not rising.
She told Checkpoint it's extra tough for first home buyers, as there are far fewer low-deposit mortgages approved now. In the past about 20 percent of a bank's book could include mortgages with a deposit of less than 20 percent. But that number of loans has been halved.
