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
FEBRUARY 2, 2010
AS THE GAP WIDENS BETWEEN BANKS STANDARD VARIABLE RATES,
WILL BORROWERS KNOW WHERE THE TRUE MARKET BENCHMARK IS?
Leading mortgage lender Resi Mortgage Corporation says the rising rate environment is creating greater
rate disparity among the big four banks on standard variable loans, leading many borrowers to wonder
where the competitive benchmark rate really is in the market.
Resi’s Head of Consumer Advocacy, Lisa Montgomery, says comparing the standard variable rates of
the big four banks to get an average ‘benchmark’ rate has been a commonly used way for borrowers to
know if they were getting a good deal from their lender, but it is now becoming increasingly irrelevant.
She says: “As the gap between standard variable rates of the major banks widens to more than a quarter
of a percent, that benchmark will continue to become a less reliable indicator of what’s competitive
across the market, leading borrowers to look at the whole playing field to see what’s available to them.”
“And as the alignment between bank rates continues to fragment, this now means more borrowers must
consider the rates of all lenders as well as placing value on the service and features that go with a loan –
both of which can make a significant difference to their back pocket,” she adds.
Montgomery says the statistics speak for themselves and paint a clear picture of what has happened to
many borrowers just by looking at the difference in standard variable rates (SVRs) of the four major
banks at various times over the last year:
Difference in standard variable rates (SVR) of the big four banks at specific times
PERIOD
LOWEST BANK SVR
HIGHEST BANK SVR
DIFFERENCE
February 2009
5.74%
5.91%
.17%
October 2009
5.99%
6.06%
.07%
January 2010
6.49%
6.76%
.27%
Montgomery says the last three months alone have seen the difference between the highest and lowest
standard variable rates of the banking majors blow out to more than a quarter of one percent, which is
also the equivalent of one official rate rise of $47 per month in repayments on an average $300,000 loan.
“These fluctuating benchmark rates will make borrowers not depend on it as a key factor in their decision
making, but will instead lead them back to looking at their loan arrangements to see how they can
customise a solution for their situation by looking at rates, features and service.” says Montgomery.
Montgomery says websites such as Infochoice and RateCity are useful starting points for consumers
wanting independent comparisons of what different lending institutions are offering.
She says: “It’s a great time for existing borrowers to see if their loan still stacks up by looking at the whole
-
and not just a sum of its parts.”
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 
