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Interest rates explained: What every first-time buyer must know
In this episode of the First Property Buyer Show, host Emilie Lauer is joined by mortgage broker Eva Loisance to unpack how interest rates shape borrowing decisions for first-time buyers.
Loisance explains how the Reserve Bank cash rate drives lending costs and why small rate movements can still influence buyer confidence and strategy.
She outlines the key economic forces behind rate decisions, including inflation, employment, and broader financial conditions.
The discussion breaks down the pros and cons of fixed and variable loans, highlighting the trade-off between certainty and flexibility.
Loisance also details how splitting a loan between fixed and variable can balance stability with repayment freedom.
Refinancing is presented as a powerful tool, with borrowers encouraged to review their loans regularly to secure better terms.
The episode stresses the importance of maintaining a financial buffer to manage rate rises and unexpected expenses.
It concludes with practical tips on making extra repayments and using offsets to reduce interest and shorten loan terms.
