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
JANUARY 20, 2009
REFINANCING LIKELY TO RISE IN 2009
AS BORROWERS BECOME MORE FINANCIALLY AWARE
Resi Mortgage Corporation says borrowers are more likely to refinance in the first six months of
2009 as more official rate cuts are predicted and consumers become more financially aware of
opportunities available to them.
Resi’s Head of Consumer Advocacy, Lisa Montgomery, says the mortgage market would expect
to see a rise in refinancing activity as official interest rates enter a more stable period after
dropping three percent since September last year.
She says: “Whether a borrower is currently on a standard variable rate or a fixed rate, there is
now greater opportunity to investigate what’s available to them, even if break costs need to be
factored into the equation.”
“However, what we also expect is borrowers won’t just be ‘chasing rate’ on their refinancing deal
but will be also looking for a lender that will be flexible and go the extra mile with them.
Consumers are now also generally more conscious of each of the individual contributors to their
financial position and are looking to pay less interest across all their debts as well as reducing the
term of their loans,” she added.
Montgomery says mortgage holders looking to refinance must shop around and carefully consider
the offerings of mortgage specialists who remain committed to looking after the needs of the
borrower – many of whom are experienced in providing guidance across other areas of consumer
finance.
“With all the turbulence of the last 12 months there are still a large number of borrowers
disheartened by their lender and looking for change. For these borrowers, rather than looking for
simply a great rate, they’ll want the benefits of a personal relationship with their lender that can be
readily provided through face-to-face service,” she said.
Montgomery adds: “Not only are there some great fixed rate deals around but so much else has
changed in respect to loan products on the market over the last twelve months. Based on this
new market, borrowers need to decide whether their existing loan arrangements - and the
relationship they have with their current lender - are still appropriate in meeting their needs.”
Montgomery suggests borrowers ask themselves the following questions before deciding whether
to refinance:
1.
Have my personal or professional needs changed and do I need different features on my loan
that are more appropriate to my new circumstances?
2.
Should I consider fixing all or part of my loan?
3.
How does my current rate and level of service stack up against that of other comparable
lenders?
4.
What costs will I be liable for if I refinance and how do these compare with what I can save
over the first twelve months?
5.
Am I comfortable with the fees my current lender charges on my mortgage?
6.
Has my interest rate increased on my credit cards? Should I look at alternatives?
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
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Montgomery explains that when purse-strings tightened for many during the period of rising rates,
consumers started to become increasingly more aware of not only how their mortgage can work
better for them but other ways they can more prudently manage their household expenses as
well.
”This year will very much see a return to the days of old where spending was more about what
you could afford – rather than what you wanted. People are realising that the changes they make
now in relation to how they manage money are a significant investment in their future financial
security,” she adds.
ENDS
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
NEWS 
