Latest / TFS WealthCast / RBA Rate Hike: The Gen Z Take (October 2026)

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RBA Rate Hike: The Gen Z Take (October 2026) · TFS WealthCast

• 0:04
  SPEAKER_01: This is the TFS Podcast where money market gets real and financial freedom is more than just a goal.
• 0:12
  SPEAKER_01: Without further ado, let's dive in.
• 0:17
  SPEAKER_01: Hi guys and welcome to another episode of the TFS Wealthcasts, the Gen Z edition.
• 0:22
  SPEAKER_01: This is the second episode, and we were asked to change our places.
• 0:27
  SPEAKER_01: We like sitting opposite each other, but now we've asked to sit next to each other.
• 0:31
  SPEAKER_01: Not that I don't feel uncomfortable sitting next to a guy, but yeah, what's up, brother?
• 0:35
  SPEAKER_01: How are you?
• 0:35
  SPEAKER_01: What's up, brother?
• 0:36
  SPEAKER_00: Probably used to it in school though, right?
• 0:37
  SPEAKER_01: Ah, there we go, there we go with the Thomian jokes.
• 0:41
  SPEAKER_01: Alright, so we have a special episode today.
• 0:44
  SPEAKER_01: Everyday is a special episode.
• 0:46
  SPEAKER_01: Every day is a special episode.
• 0:47
  SPEAKER_01: I don't know.
• 0:48
  SPEAKER_01: I'm just gonna go back a bit.
• 0:52
  SPEAKER_01: I really hate this position.
• 0:53
  SPEAKER_01: I like looking at you straight.
• 0:54
  SPEAKER_01: Now you look at you like this.
• 0:56
  SPEAKER_01: So Charit, what are we talking about today?
• 0:59
  SPEAKER_00: We're talking about what just happened yesterday.
• 1:02
  SPEAKER_00: The talk of the town, the RBA rate increase again.
• 1:06
  SPEAKER_00: By 25 basis points.
• 1:08
  SPEAKER_00: 25 basis points, which is pretty, you know, I think it is expected uh in the market, but obviously when it actually hits you, you're like, damn.
• 1:16
  SPEAKER_00: Yeah, like you know, so we'll talk about uh you know the effect of that, the actual effect of that, how much you know your uh repayments will rise by and just you know give some ideas on how you can kind of manage that uh as well in the in the short run and long run as well.
• 1:33
  SPEAKER_01: So so be before we begin, so what what are we seeing from our clients?
• 1:37
  SPEAKER_01: Like what what are they panicking or because I I I I I know the phone started ringing as soon as the rate went up.
• 1:43
  SPEAKER_00: Yeah, absolutely.
• 1:44
  SPEAKER_00: I think uh the first thing is for you know, I think something that we do is we always reprice our existing book.
• 1:51
  SPEAKER_00: So we've been doing that, you know, for as long as I can remember.
• 1:54
  SPEAKER_00: And apart from that, you know, there are clients who are calling us and you know, it's like, am I on the best rate?
• 1:58
  SPEAKER_00: Is this the best option for me?
• 2:00
  SPEAKER_00: And luckily, thanks to what we're doing, they are on the best rate.
• 2:03
  SPEAKER_00: And obviously, you get new clients who are coming in or clients that were floating about before, and obviously they are also now thinking, Oh my god, has my borrowing changed?
• 2:12
  SPEAKER_00: Is it still is it's still there?
• 2:13
  SPEAKER_00: Can I still purchase this amount?
• 2:15
  SPEAKER_00: And there is a lot of panic.
• 2:16
  SPEAKER_00: But the good part is that's why you know they come to us because we know we've been through these markets before.
• 2:20
  SPEAKER_00: Pramo and Sonali have been through these markets before.
• 2:23
  SPEAKER_00: Of course, it's uh it's a bit you know intimidating, but doesn't mean it's the end of the world.
• 2:28
  SPEAKER_00: There's always a solution, and it's just about figuring out what uh you know how you navigate through that, and that's what we're here to do, help you navigate through the rate hikes as well.
• 2:38
  SPEAKER_01: You're sitting like this, it really feels like you're talking to me, man.
• 2:41
  SPEAKER_01: Like it feels like you know the last time I was this close to a guy who was in school, exactly, sitting next to me, but we had small desks, so it was annoying, but it's now means and you're taller guys, yeah.
• 2:54
  SPEAKER_01: Yeah, so now in a way, chariot.
• 2:59
  SPEAKER_01: Now, with the rates going up, it's uh clients should really start focusing more on their finance structure, right?
• 3:07
  SPEAKER_01: How their loans are structured, as opposed to a lot of brokers in the market going, oh, we'll give the lowest rate, lowest rate, lowest rate in the market, and then people just go like small basis, like uh like a small difference in rate, right?
• 3:20
  SPEAKER_01: And clients will be like, Oh, I'm on a 6.5% rate.
• 3:24
  SPEAKER_01: This guy's giving me 6.45.
• 3:26
  SPEAKER_01: Let me go get that.
• 3:28
  SPEAKER_01: That 0.5% difference.
• 3:29
  SPEAKER_01: But what they don't really see is going from bank A to bank B, there could be clauses inside that, yeah, right?
• 3:39
  SPEAKER_01: Inside the exactly, which which they don't really account for, the loan fees involved.
• 3:45
  SPEAKER_01: Uh, so now we can take that out of the equation because yeah, I I don't think a lot of brokers can market lowest rate in the market, lowest rate in the market, uh, in the market where rates are going up.
• 3:56
  SPEAKER_01: So, how important is it to structure their loans for clients?
• 4:02
  SPEAKER_00: Yeah, I think uh it's very important, whether it's uh doing a rate hike or you know, uh a rate cut, you need to always be on top of it.
• 4:11
  SPEAKER_00: And in terms of structuring your loans, it's all about maximizing you know how much of your loan you're paying.
• 4:18
  SPEAKER_00: You know, something that is always a good recommendation for you know cash flow purposes is probably you know keep your home loan principal and interest, and maybe you can improve your cash flows by going interest only on your investment.
• 4:31
  SPEAKER_00: Right?
• 4:31
  SPEAKER_00: I know there have been uh changes.
• 4:33
  SPEAKER_00: We won't touch on the you know the leader side of the common side of things.
• 4:38
  SPEAKER_01: We we won't look this this I just asked Gen Z we're just two Gen Z talking about how you know these things affect us and our friends and you know all of that.
• 4:49
  SPEAKER_01: So I mean we're Zillenius, so we can also talk about millennials and Gen Z.
• 4:52
  SPEAKER_01: Yeah, exactly.
• 4:53
  SPEAKER_01: We cater we're the best of both worlds, yeah.
• 4:55
  SPEAKER_01: Uh but yeah, this is not credit advice, neither this is legal advice, just or our opinions, yeah.
• 5:02
  SPEAKER_01: Maybe life advice, I don't know, you know, could be it.
• 5:06
  SPEAKER_01: Call for life advice too.
• 5:07
  SPEAKER_01: Yeah, you know, so this is just general advice.
• 5:10
  SPEAKER_01: There is a disclaimer.
• 5:11
  SPEAKER_01: Yeah, there is a disclaimer.
• 5:12
  SPEAKER_01: There is a disclaimer.
• 5:13
  SPEAKER_00: We have terms and conditions, check the description.
• 5:15
  SPEAKER_00: Oh my god.
• 5:16
  SPEAKER_00: So yeah, definitely like structuring your loan is really important.
• 5:19
  SPEAKER_00: And I'll give you an example, Vishy.
• 5:21
  SPEAKER_00: Like, with for a 600,000 loan, if your um rate goes up by 0.25%, you know you're essentially paying you know$97 to about$100 more per month, yeah, based on that increase, right?
• 5:34
  SPEAKER_00: That's$1,200 per year.
• 5:37
  SPEAKER_00: So now that's something you know, if you're looking at a sophisticated investor, that difference is a lot more because their loan balance is quite high.