Credit Union home loans offer some of the lowest interest rates available in Australia – here's all you need to know about them
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Credit unions offer many of the advantages of online lenders – such as some of the lowest interest rates available in Australia, simple application processes and great customer service. Find out more about why a credit union could be worth considering for your next home loan and how comparing home loans with Savvy can save you thousands overall.
A credit union is a not-for-profit financial institution which returns all profits back to its members through lower fees, better interest rates and higher yields on savings. On the other hand, banks are for-profit institutions which are accountable to share-holders, who receive profits via dividends.
Credit unions are often region or community-based and can serve the needs of a specific group of people or regional area – for example, the Broken Hill Community Credit Union or the Illawarra Credit Union. Banks tend to be Australia-wide and have less local community focus.
However, all credit unions (and building societies) are authorised deposit-taking institutions (ADIs) and are regulated by the Australian Prudential Regulation Authority (APRA), which is the same institution that regulates banks. For this reason, credit unions are just as safe as banks.
Credit unions redistribute all of their profits back to their members, which is why they’re called not-for-profit organisations. They use these profits to lower interest rates for home loans and reduce fees (or sometimes charge no fees at all). As soon as you take out a credit union mortgage or open a home loan account with a credit union, you become a member and so are able to take advantage of the decreased credit union home loan interest rates on offer.
In addition, credit unions traditionally have less infrastructure and salaries to pay, so their overheads are far lower than banks with branches in many high streets across the country. For this reason, some credit union home loan rates in Australia are on a par with online lenders, who are known for offering some of the cheapest home loans currently available.
To compare credit union home loans, first be very clear about what type of loan you want. Of course, finding a loan with a low interest rate should be high priority, as even a small difference in interest rate will make a big impact on the amount of interest you pay, potentially saving you tens of thousands overall. Your choices of loan type include:
Next – think about what loan features you may want to help you reduce your interest rate bill. Your choices of loan features include:
Once you’ve worked out what type of home loan you’re after, and the loan features you really need, use Savvy to compare loans and lenders to find a loan that is the perfect fit for your family’s financial needs.
You don't have to pay a cent to compare home loans with us, enabling you to do so at any time.
You can fill out a simple online quote via our form without having to worry about sorting through heaps of paperwork.
With a panel of reputable mortgage lenders behind us, you can rest assured you'll be comparing high-quality options.
Credit unions are able to offer some of the lowest interest rates in Australia, which is great news for borrowers looking to get into the property market
Credit unions rely on technology to offer their customers a simple and satisfying online experience, so they invest heavily in start-of-the-art user-friendly loan application software in the same way online lenders do.
Because credit unions tend to serve a particular geographic region, it is in their interest to impress their customers with great customer service. They offer a more personalised, local service than you may receive at a big bank.
If you do want to visit the branch of a credit union in person, you’ll find there are far less credit union offices so you may have to travel further to find the closest branch office to you.
The big banks have a very wide range of financial products to offer, and will probably be able to satisfy the needs of almost every borrower. The credit unions are not able to offer such a wide range of loans, so may not have a loan which is a perfect fit for your needs. That’s why it’s important to compare credit union home loans with Savvy to find one that is just right for you.
If you find yourself in a position where you require a non-standard home loan, such as if you’re struggling with your credit score, have had defaults or bankruptcy or don’t have all the documents you need, credit unions probably won’t be able to help you. This stricter loan criteria may mean you’re better off going to a specialist online lender.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
