Baseline Financial director Ari Levinson said the latest rate rise had already reduced borrowing capacity for typical Melbourne households, tightening competition even when buyer demand still looked strong.

Mortgage broker Ari Levinson warns a 25bp move can cut borrowing power fast, with bank serviceability buffers magnifying the impact for buyers.

Baseline Financial director and property investment expert Ari Levinson said the average inner-city Melbourne unit was priced at about $587,400, meaning a 20 per cent deposit required roughly $117,000, compared with about $29,000 at a 5 per cent deposit.

Ari Levinson, a director and finance broker at Baseline Financial, say avoiding financial stress shaped their decisions long before parenthood.