Credit Union Home Loan Comparison
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It will not have gone unnoticed to many that the worldwide financial crisis has had an almighty impact on businesses and homeowners in Oz.
Many families have been stretched as far as they can financially, with many facing the prospect of losing their homes. Job uncertainty is still an issue, and many people are looking to the government to provide some sort of solution to the problems. A credit union home loan may be a good alternative for you.
Save with a Community First Home Loan
Featured Credit Union Home Loan
A low interest rate home loan with a low ongoing fee. 100% offset account with free ATM and EFTPOS access.
- Interest Rate of 6.19%
- Comparison Rate of 6.19%
- Application Fee of $0
- Maximum LVR With LMI: 80%
- Minimum Borrowing: $50,000
- Maximum Borrowing: $2,500,000
A full banking review is something that has been discussed many a time, but recently another possible solution to some of the problems has been brought to the medias attention.
The Big 4
In the wake of the financial unrest in the country, a number of the major banks did nothing but cause absolute fury among consumers by hiking their rates the second the reserve bank had to increase the base rate for the first time in a while.
Instead of doing their bit to help struggling customers, they also raised rates, and many took the view that they saw it as another money grabbing opportunity. It is certainly fair to say that they behaved in a rather unsympathetic way. Unfortunately it is not the first time the big 4 have been cited for “greedy” tactics. Many feeling their desire to lend money to as many people as they could was one of the main causes of economic trouble in the country.
So how can these big banks keep treating customers as if they are being held to ransom? Is it to do merely with their size? Or is it because they feel there is no competition for them?
Well, if people pay attention to what we are about to say, that could all change in the near future.
Credit Unions and Building Societies
Wayne Swan, the country’s Federal Treasurer has called for people to start looking for alternatives to the big 4. Those alternatives come in the form of credit unions and building societies.
The main differences between the banks, and the credit unions is that the unions are customer owned. They are run by members, and not a private company whose sole goal is profit. Some of the building societies and unions still remain small fry in the finance sector because many people are not aware of the full range of products available from them.
Many people associate them with saving accounts rather than lending. However that could not be further from the truth. Not only can you get a personal loan from the unions, but you can also get home loans as well!
Not only do you have access to these products, but in many cases they offer a much better rate than the big banks. For example, it has been said that you could find yourself 100 basis points better off on your home loan vs one of the big 4.
By creating more competition for the bigger banks, they will eventually have to drop their rates or risk losing business. Whilst they feel they are the only option for borrowers they will keep getting away with their hiked prices.
Safe and Regulated
When asked, one reason some Australians were nervous about getting a loan from a building society or union was security. Some were concerned about their rights, and whether these companies were regulated.
The good news is that they are regulated and supervised in exactly the same way as the big banks so you are perfectly safe borrowing money from them. Your rights are exactly the same, and you are protected from any unruly practices.
If you have not yet looked at what the mutual sector has to offer, then I urge you to take a look. You may be surprised, and even better, it may force the big boys to rethink their strategy.
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