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Rate hikes: What first-time buyers must know now
The trio breaks down the Reserve Bank of Australia’s recent 0.25 per cent cash rate increase and explains how inflationary pressures are driving tighter monetary policy.
They warn that even modest rate hikes can significantly reduce borrowing capacity, particularly as property prices continue to climb.
The discussion highlights how successive increases compound repayment pressures, widening the gap between what buyers can borrow and what homes cost.
Loisance outlines how family pledge arrangements are helping first home buyers enter the market without a large cash deposit by leveraging parental equity.
Arvanitopoulos stresses that borrowing power varies widely between lenders, making broker guidance critical in navigating credit policies and living expense assessments.
The brokers also reframe lenders mortgage insurance as a strategic tool that can help buyers secure property sooner and potentially benefit from capital growth.
Ultimately, the hosts emphasise proactive budgeting, refinancing strategies, and informed decision-making as essential tools for buyers operating in a volatile rate environment.
