Can you save $76K by switching to a credit union?

Australia Institute executive director Richard Denniss says homebuyers can “save more than $1,000 a year on an average mortgage” by switching to a mutual owned institution.

The Australia Institute found over the life of a mortgage, there were savings of more than $76,000 with a home loan from a mutual bank, credit union or building society compared with a loan from one of the big four banks.

The Australian Bankers’ Association, however, says the comparison is unfair. “Most bank customers are not paying the advertised standard variable rate but a lower rate. So the savings suggested by The Australia Institute are not real,” ABA chief executive Steven Munchenberg says.

Source: Herald Sun