Sep 4, 2008

Rate Cut Welcome relief for Grayndler Families

Rate Cut Welcome relief for Grayndler Families

MEDIA RELEASE

The Hon Anthony Albanese

Minister for Infrastructure, Transport,

Regional Development and Local Government

Leader of the House

Member for Grayndler

September 4 2008

Anthony Albanese today said families in Grayndler would welcome the announcement by the Reserve Bank to cut official interest rates by 0.25 per cent.

“We have some of the highest house prices in Australia in Grayndler so any relief is welcome,” said Anthony Albanese.

2006 Census data tells us that households in Grayndler pay $60 per week more than the national average in rent and $162 per week more in mortgage repayments.

“It’s tough to buy in the inner west especially for those trying to move out of rental accommodation.”

“When people move from renting to a mortgage there is a big jump in cost, the high mortgages that characterise Grayndler are confronting for first home buyers and are far more sensitive to changes in rates,” said Anthony Albanese.

This cut in interest rates will provide an extra $87 per month for people on a $500,000 mortgage.

“Many families have been feeling the full weight of successive interest rate rises and this rate cut will be welcomed by them.”

“But only if their bank does the right thing and passes on the rate cut – and there’s absolutely no excuse for any bank not to do so, none at all.”

“I would encourage people to name and shame lenders that don’t pass on this cut and if needs be switch banks,” said Anthony Albanese.

The Rudd Labor Government announced changes to make it easier for consumers to switch banks and created a website to guide people through potential pitfalls in the process.

Information can be found at http://www.understandingmoney.gov.au

First home buyers should also consider opening up a First Home Saver Account which will be available from October 1.

Information can be found at http://www.homesaver.treasury.gov.au

“I encourage people to use these resources,” said Anthony Albanese.