Episode Details

The Reserve Bank of Australias latest 0.25 percentage-point cash rate increase, to 4.6%, could lead to higher borrowing costs or tighter lending assessments for households and small businesses. Paige Estritori explains why borrowers should look beyond advertised rates and compare fees, repayment schedules and the total cost of a loan. She also encourages borrowers with variable-rate loans to review their budgets, maintain a buffer for unexpected expenses and test whether repayments remain manageable if income changes. Loans advertised as requiring no credit check deserve particular caution: understand how affordability is assessed, review all terms and fees, and be wary of guaranteed-approval claims. Approval does not necessarily mean a loan is affordable.