Episode Details

The Reserve Bank of Australia has raised the cash rate to 4.6 per cent, potentially increasing pressure on household budgets and small-business cash flow. While the cash rate does not directly determine every loan rate, it can influence lenders costs and pricing. Borrowers should check whether repayments remain affordable if rates or other expenses rise. Be cautious of loans advertised as requiring no credit check or offering guaranteed approval: lenders may still assess repayment capacity, and the total cost, fees, repayment schedule and possible credit-history impacts should be reviewed before signing. Small businesses should also revisit loan terms and account for unpredictable income. Look beyond advertised rates and quick-approval promises, and consider the full cost of borrowing and your ability to repay.