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 29, 2009
RENOVATE YOUR MORTGAGE IN 2010 -
OR KNOCK DOWN AND REBUILD?
Leading non-bank lender Resi Mortgage Corporation says the rising rate cycle in 2010 will force
mortgage holders to either ‘renovate’ their existing mortgage or ‘knock down and rebuild’ the loan entirely.
Resi’s Head of Consumer Advocacy, Lisa Montgomery, says with three consecutive rate rises already
announced and more predicted, the New Year will give many borrowers the time they need to decide
whether they can renovate their existing mortgage to save money, or refinance to a better alternative.
She says: “With rates now widening between loan providers and some borrowers feeling frustrated at an
absence of customer empathy from their lender, now is the ideal time of year to decide whether you can
work within the features of your existing mortgage to improve your cash flow - or if you’re better off cutting
your losses and paying break fees if necessary, by refinancing to a more appropriate loan and lender.”
Montgomery says if you are looking to ‘renovate’ your current mortgage to save yourself money over the
long term there are a range of simple options to consider, including:
Switching to fortnightly payments instead of monthly, which not only lessens the impact of paying
one large lump sum each month but also means your loan is paid off sooner;
Consolidating any lingering credit card debt which is accruing high interest of up to twenty percent
into your mortgage, allowing you to concentrate on paying off one lower interest loan;
Directing any savings from other accounts onto your mortgage, lowering your principal amount,
and;
Setting up your mortgage payments
to be deducted automatically if you currently manage this
manually. This lessens the opportunity to reduce the amount you may choose to pay at any time.
Montgomery says if you then look at these changes and still
find they won’t materially improve your
finances or that your circumstances have changed too much for them to make any significant impact –
that’s when it may be time start looking around for a more customised solution in the form of a new loan
with a better rate, more appropriate loan features or more genuine customer support.
.
She says: “However, before taking any definitive action, speak to your lender and see firstly what options
they can suggest to make your loan work harder for you and then what fees may be payable with your
current loan if you do decide to go elsewhere - as this will all need to be factored into your end decision.”
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 
