Interview with David Bryde: Greater Building Society Product Manager

The following interview is with David Bryde of Greater Building Society. With awards for Best Home Loan for consumers in considering a home loan from Great Building Society. They can tailor a home loan package to suit consumers’ need.  David discusses the various home loans on offer from Greater Building Society and the current state of the Australian home loan market.

Home Loan Finder: What is the major difference and advantage for consumers in considering a home loan from Greater?

David Bryde: Unlike the major banks we exist for our customers, not shareholders.  As a mutual we don’t have shareholders to answer to and can put people before profits. It allows us to offer lower interest rates, low fees and outstanding service. We have an independent customer satisfaction rating of 95%, way above the banks’ ratings and our customer focussed approach has seen us win a number of major awards in recent years.

Home Loan Finder: Greater recently announced a 1 year fixed interest rate of 5.94% p.a. – how much of a saving is this offering compared to the average fixed rate home loan in market?

David Bryde: The average one year rate of the four major banks is currently 6.56% p.a. On a $250,000 loan Greater customers will save approximately $1,500 just on the headline rate but the long term savings come after your fixed rate expires. Unlike many lenders who dump you back on to their most expensive standard variable rate, at the Greater you’ll revert to our lower Great Rate variable rate. The Greater’s Great Rate variable rate is just 6.94% p.a. while the average standard variable rate for the four major banks is 7.78% p.a.) You can make some serious long term savings with our product.

Home Loan Finder: Can you please tell us about the Getaways Home Loan offer?

David Bryde: The Greater’s Getaway Home Loan is our standard variable home loan. As well as a low rate of just 7.30% p.a., no ongoing fees, free phone and internet banking and free internet redraw, customers also get a free holiday. The more you borrow the more triangle reward points you can earn to be used for a holiday to more than 200 destinations.

Home Loan Finder: What advice would you give to homebuyers looking to refinance in the current economy? How can they ensure they find the best loan to help them pay off their mortgage and not be weighed down by ongoing fees?

David Bryde: It’s important to do your own research and shop around. You can’t always rely on your existing lender to keep you informed of their best offers and mortgage brokers don’t have access to all the best deals. Comparison sites like homeloanfinder.com.au are a good place to start but don’t just look at headline interest rates. It’s important to compare comparison rates as they give you a better idea of what a loan is likely to cost you in the long run by taking into account fees and charges. Rate isn’t the only thing to consider either. There are some essential loan features like extra repayments and redraw facilities that are “must haves”. Service and access to money are also important considerations.

Home Loan Finder: What advice can you offer to first time home buyers looking to enter the market?

David Bryde: My daughter is buying her first home at the moment.  It is a special time and it’s easy to get caught up in the excitement and over-extend yourself. The maximum amount your lender will loan you isn’t always the amount you can genuinely afford. Ideally, what you’re currently saving and/or paying in rent will equal what your future loan repayment will be. If not, it’s a matter of being clear about what lifestyle choices you’ll forgo to make sure there’s room in your budget for the increased financial commitment.

There will be reduced Government assistance for first homebuyers purchasing existing homes from January 1, 2012 so it may pay you to act now, but with  property prices being as high as they are it may take longer for first homebuyers to get into the market. If you’re not 100% ready to get into it you’re better staying out of it and accumulating wealth rather than debt you can’t manage.

Home Loan Finder: More broadly, what do you think consumers should be doing now to better manage their finances and easing the cost of living in the current economic climate? 

David Bryde If you have debts, the smart thing to do in most cases is repay it as fast as you can. If you have a balance on your credit card that you aren’t clearing each month, treat it as a personal loan and make a payment each pay period that will repay it in full within a timeframe of your choice. Only making the minimum payment you’re asked to make will barely cover the interest charges each month and keep you in debt for longer.

When push comes to shove we’ve all got luxuries in life that we can forgo to ease living costs. Sometimes little things can make a big difference. My wife and I recently worked out that if we stopped buying our daily coffee we’d save ourselves $1,700 a year. It’s a great coffee but there’s a lot you can do with $1,700!

Greater Building Society Bonus Saver Accountthat pays you additional interest if you make a monthly deposit and no withdrawals.

Home Loan Finder: You recently launched the Greater Charitable Foundation – can you please tell us about this initiative?

David Bryde The Greater has a proud history of supporting communities in which it operates. The Greater Charitable Foundation formalises this commitment and takes it to a new level. An initial allocation of $1M will be distributed directly from the Greater’s profits in the first year and we will continue to fund the Foundation from the Greater’s profits. Aside from providing financial support the Foundation is looking to fund projects in which Greater staff can be personally involved.

Home Loan Finder: What can consumers expect from Greater in the future to see it remain one of Australia’s most competitive lenders?

David Bryde It’s clear from their inferior customer satisfaction ratings that there are a lot of unhappy bank customers out there so consumers can expect the Greater to continue to take up the challenge to the major banks to ensure they have access to a competitive market-place. We will continue to develop new products, particularly online, to ensure we can meet our customers’ entire financial needs. The Greater has just introduced mobile (smartphone) banking and updated its iPhone App. We’ll continue to focus on the areas that we believe the banks fall down in like fees and service. And we’ll always look for ways to save our customers money.