Latest cut delivers greater flexibility, says lender
03 Feb 2009 2:58 PM
SYDNEY, Feb 3 AAP - Resi Mortgage Corporation says the latest rate cut by the Reserve Bank of Australia (RBA) will deliver greater options to borrowers.
The RBA on Tuesday cut the cash rate by 100 basis points to 3.25 per cent, its lowest level since early 1964.
Resi's head of consumer advocacy Lisa Montgomery said it is now clearly a borrower's market, with greater flexibility for consumers.
"This latest cut means a borrower is potentially $744 per month better off since August last year, based on a $300,000 average standard variable loan taken out over 25 years," Ms Montgomery said.
"Canny borrowers will be really doing their homework to see how they can take further advantage of this.
"Whether borrowers decide to reorganise their cash-flow, restructure their existing loan or completely refinance, the time to act has never been better and will significantly improve their financial footing over the long term."
