Finance This, Property That

Episode 71: Why Chasing the Lowest Rate Could Cost You More

• Dion Fernandes

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0:00 | 7:09

🔊 Top Quotes

  1. "If you’re trying to grow, forget about chasing the best rate — we need to figure out the best policy and valuation first."
  2. "The loan needs to work not just for the next deal, but the next two to three deals — that’s how you build a sustainable portfolio."
  3. "We’re not reactive — we’re proactive. That’s why we reprice your loan every six months to keep your rate competitive."

🎧 Episode Synopsis

In this solo episode of Finance This Property That, Dion Fernandez breaks down the costly obsession many borrowers have with chasing the lowest interest rate — and why that mindset could be holding them back from true portfolio growth. Drawing from real client conversations, Dion explains how smart investors prioritize policy, structure, and long-term planning over short-term savings. With clarity and strategy at the forefront, this episode delivers a blueprint for sustainable lending decisions that actually build wealth — not just win on paper.

📘 Episode Breakdown

00:00 – Intro
Dion welcomes listeners and recaps who the podcast is for — time-poor professionals, investors, and self-employed borrowers aiming to build smart property portfolios.

00:55 – Why Rate Obsession Is Misleading
Dion explains how the ultra-low COVID-era rates distorted borrower expectations and why focusing solely on rate can be dangerous for long-term growth.

02:00 – Policy Over Price
Rate shouldn't be the first factor — lender policy, valuation models, and servicing should lead the decision. Dion breaks down why this matters for anyone trying to grow beyond one or two properties.

03:30 – What Banks Won’t Tell You
A look at the hidden trade-offs of "cheap" loan products: lack of offset accounts, redraw fees, and restrictive policies that can limit portfolio expansion.

04:45 – Strategic Lending Structure
Dion shares how he structures loans to support multiple future purchases, not just the current one — focusing on offset strategies and equity recycling.

05:45 – Proactive Loan Management
An inside look at how Dion's team, including Anne from Emerge Finance, reprices loans every six months to ensure ongoing competitiveness.

06:30 – Closing & Call to Action
If you're unsure about your current loan structure or chasing rates blindly, Dion invites listeners to connect with him via Instagram, LinkedIn, or his website.