First Home Buyers Guide.

This Heritage Media podcast will cover everything you need to know before starting that journey of buying your first home. Topics include first home owners grants and how to apply, interest rates, different kinds of markets, settlements, cool-off periods, and more.

There are a lot of confusing steps and common topics that are spoken about when you're buying your first home. One of the topics that have the most questions is interest rates. What are they, how do they affect the property market, and how do interest rates affect people when buying or selling houses? Let's explore some factors that influence interest rates.

Well, interest rates, there's a cash rate, which is done by the Reserve Bank, and the cash rate is a margin they say that it is going to cost to lend money out. And so the banks put their margin on top of it. So, the margin of the bank might be, say 2% for example, and the cash rate could be 1%. And so that would make 3% out in the marketplace. So when you hear there's a 3% interest rate, that's because there's a cash rate and then there's that market rate on top of it.