Although 86 per cent of Australians expected the Reserve Bank of Australia (RBA) to lift interest rates this week, only seven per cent are prepared to take their lunch to work, according to research commissioned by Wizard Home Loans.
On the whole, it appears Australians aren't concerned about the predicted pre-Christmas rate rise, with 34 per cent stating they've done nothing to prepare, and only 21 per cent indicating they have cut back on luxury purchases.
It therefore should come as no surprise that 30 per cent are hoping for a $1,000 petrol voucher in their Christmas stocking. But, only eight per cent indicated they would consider using their car less as a means of cutting back spending.
And given the option, Australians are ambivalent as to whether a rate cut is the ideal Christmas present. They'd be almost as happy with a summer holiday (24 per cent) as a rate cut (30 per cent).
The research is further evidence of widespread ambivalence towards rising interest rates, with 42 per cent also saying any rate rise would not affect the amount of money they spend on either Christmas presents or a summer holiday.
Despite these apparent signs of confidence, Wizard chairman Mark Bouris sounded a word of caution reminding borrowers that humble practices, such as taking lunch to work can generate big savings on a home loan.
"Most people spend an average of $10 a day buying their lunch at work. Yet many could save about $5 a day by packing lunch - resulting in a weekly saving of $25," Mr Bouris said.
Taking your lunch to work, could save you almost $85,000 in interest and shave four years off your loan based on a $350,000 loan at 7.47% rate.
"Over a month, a packed lunch could add up to an extra $100 to go into the mortgage."
Bouris said, "We've always encouraged consumers to make extra repayments and now it's time to get serious about basic budgeting as well."
Wizard's efforts in educating customers on the benefits of making extra payments is paying off, with 37 per cent ahead of their repayments by more than $10,000.
Reflecting on how rates may fare in 2007, Bouris said, "I'm confident that by the end of 2007 we will see the end of the rate rising cycle, with rate cuts on the agenda."
Home owners new to the market since 2002 have now experienced seven rate rises. Another rate rise will make it eight.
