The average Launceston mortgageholder's monthly loan repayments have more than doubled in the past five years.
Canstar modelling shows the average Launceston and North-East homeowner was paying just $1338 a month in August 2018 (assuming a 20 per cent deposit on the median dwelling price of $336,000).
By the time of the Reserve Bank's first rate hike in May 2022, the COVID property boom catapulted the region's median dwelling price to $576,000, meaning the average homeowner's monthly repayment was $1938.
Sixteen months and a dozen rate rises later, Launceston and North-East's median dwelling price has dropped to $519,000, but the average monthly repayment has hit $2,758.
According to 2021 census data, this figure represents about half the median monthly income of homeowners in the region.
So what does the new landscape mean for homebuyers?
The cash rate appears to have stabilised at 4.1 per cent after three consecutive months without a hike.
Launceston homebuyers have much less borrowing capacity than one year ago, but may have better insight into what the future holds.
"For a typical borrower their borrowing capacity has reduced by about 30 per cent in the past 12 months," said Launceston broker Stewart Nankervis, of Urban Money.
"So if you could borrow $500,000 12 months ago before the rates went up, you can now borrow about $350,000, so it's a real reality check for a lot of people - it's not easy.
"But I think people know a bit more about where they stand now and it is what it is."
Mr Nankervis said the majority of borrowers were currently opting for variable-rate loans.
"At the moment fixed rates are quite a bit higher than variable," he said.
"In general most people tend to be going variable in the hope they [interest rates] don't go too much further."
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