"Resi's standard variable rate is already one of the most competitive on the market and has a 5-star rating with Cannex. We're now offering to cut that rate by a further 0.34% for 15 months, with borrowers secure in knowing that they'll still be on a great rate at the end of this period," said Resi's national manager for consumer advocacy, Lisa Montgomery. With more gimmicks on the market than ever, Resi is anxious to distinguish its new Switch and Save loan from other 'honeymoon' rate loans, which advertise an ultra-low headline interest rate, only to slam borrowers with an exorbitant revert rate, sometimes bordering on 8%. "They tend to have [revert] rates around the 7.82% or 7.83% mark, as compared to Resi's Switch and Save rate of 7.19%. Over the life of a 30-year $250,000 loan that's a difference of more than $38,000," said Montgomery. The offer, which is available for a limited time, is aimed at helping would-be homeowners who may be a little shaken following the two recent rate rises. "The average family budget has been under a lot of pressure this year and people are clearly worried that this will get worse if interest rates rise again," said Montgomery.
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