8 December 2011
Yellow Brick Road would like to say sorry for taking so long to announce its response to the recent RBA Official Cash Rate reduction of 0.25%. “We recognize the significance of this rate reduction for Australian consumers and small business to provide confidence and certainty leading into the Christmas period. Even though it hurts our margins, it’s the right thing to do.” said Mark Bouris.
Yellow Brick Road Holdings Limited (ASX: YBR), in conjunction with partner Gateway Credit Union Ltd, has announced it will pass on the full 0.25% cut for its variable rate mortgages . The cut will apply to its new and existing variable rate mortgage customers effective 15th December 2011, which is only 7 days away and is the earliest possible effective date.
A quarter percent rate reduction on an average family’s $350,000 mortgage, together with the reduction announced in November, will put almost $1,400 back into the family budget over the next 12 months. While the cuts will hopefully give retailers a boost coming into the Christmas period, many Australians will be using the money to pay down debt and meet basic costs of living expenses.
Executive Chairman, Mark Bouris said, “With deepening concerns and uncertainty arising out of the Eurozone debt crisis, together with mixed economic signals domestically, the decisions to pass on the cut in full is difficult, especially given our size compared to the major banks, but this is what Australians’ deserve.”
“Over the last 18 months Yellow Brick Road and Gateway Credit Union have been working to provide real competition in the market to show that this partnership can level the playing field with the major banks,” says Gateway Credit Union Ltd CEO Paul Thomas. “Given the relative size of our balance sheet when compared to the major Banks, these decisions are tough to make and do hurt margins, but this is part of our commitment, with Yellow Brick Road, to provide true competition for the Australian consumer.”
Copyright © 2012 Yellow Brick Road
