resi mortgage corporation pty limited ABN 61 092 564 415
Level 3, 458 Wattle Street, Ultimo NSW 2007
Tel 02 9280 0007 Fax 02 9280 0009 E-mail save@resi.com.au PO Box 12 Broadway, NSW 2007
MEDIA RELEASE
DECEMBER 1, 2009
BORROWERS NOW NEED TO AVOID A POTENTIAL
‘DOUBLE WHAMMY’ IN FEBRUARY
As another official rate rise by the Reserve Bank places more pressure on many household
budgets, Resi Mortgage Corporation says borrowers now need be careful to avoid the potential of
the ‘double whammy’ occurring in February - the month when Christmas credit card statements
are issued and the Reserve Bank meets again to decide whether rates will rise further.
Resi’s Head of Consumer Advocacy, Lisa Montgomery, says the latest rate rise announcement
will curtail the spending plans for some borrowers over the Festive season, but others will still
need reminding that a belated New Year financial hangover is still a real possibility in February.
She says: “In addition to the previous two rate rises, this latest increase means borrowers now
have to find an extra $140 per month on an average $300,000 loan*, and that figure may rise to
almost $200 in February if the Reserve Bank decides to raise rates again when they next meet.
However, when you then add to that cumulative figure the additional impact of one of the heftiest
periods of spending in the year – the month of February may well be the undoing for some
borrowers. And this is not the way any mortgage holder should be starting a New Year.”
Montgomery says there are a few simple strategies that can be employed instead, in order to
avoid the double whammy in February:
Pay cash for all your Christmas purchases and leave the credit card at home;
Set limits with family and friends on what everyone can spend on each other;
Reduce the Christmas food and drink bill by either buying in bulk or asking each
family member or friend to bring something along to contribute to the occasion;
If you receive a Christmas bonus of any amount - use it to pay something off;
If you are still considering booking a last minute holiday in January, consider instead the
merits of holidaying in your own backyard and what it can save you financially.
“With interest rates set to climb in 2010, the best Christmas present a borrower can give
themselves this year is the financial breathing space they will need for the period ahead.”
Montgomery adds.
ENDS
*
Monthly repayment figures based on an average $300,000 principal and interest standard
variable loan taken out over 25 years
Media Contact:
Lisa Montgomery, Head of Consumer Advocacy,
RESI Mortgage Corporation: (02) 8204 5012 or 0414 592 553
Karen Bristow - Kardan Consulting: 02 9967 3245
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