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
APRIL 7, 2009
USE EVERY RATE CUT TO CONTINUE BUILDING
YOUR FINANCIAL BUFFER
Resi Mortgage Corporation says borrowers concerned about the future should use gains passed
on from every rate cut to restructure their finances and build a financial buffer, ensuring they have
the best chance of maintaining their mortgage repayments.
Despite all the recent news on provisions available for borrowers facing financial hardship,
everyone should be aware that there has always been a large of range of options in place with all
mainstream mortgage providers – yet these are unlikely to be used by most mortgage holders if
they take more control of their own finances.
Resi’s Head of Consumer Advocacy, Lisa Montgomery, says borrowers should do everything
they can to preserve their ability to keep paying their mortgage by looking at what measures they
can employ now, to give them more long term flexibility with their finances.
She says: “Regardless of today’s official rate announcement, there has already been a $744 per
month* reduction in interest on the average $300,000 loan, so borrowers should be looking at
those figures - and working out how they can best use that money to build themselves a buffer.”
Montgomery says recent borrower behaviour indicates an increasing number of Australian
mortgage holders have already employed strategies to free up cash including:
Consolidating debt to get rid of high interest debt;
Revising plans to upgrade their house;
Revising plans to upgrade their car;
Holidaying locally, rather than interstate or overseas; and
Reviewing and cutting back on discretionary and non-discretionary spending.
She says: “Once borrowers become used to these changes, their effect can be compounded
significantly by any further rate cuts, creating a buffer for times when the borrower’s cash flow
may be materially affected by life events or a rise in rates.”
“The old adage of keeping it simple has never been more relevant than now,” she added.
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
*
Figures based on a principle and interest loan taken out over 25 years
NEWS 
