Credit unions grab mortgage market share
Nearly one in ten homeowners are using a credit union or building society for their home loan according to new ABS figures released by Abacus, peak body for credit unions and building societies. The demise of unregulated lenders in the wake of the global financial crisis has driven a 30% increase in the take up of new home loans provided by credit unions and building societies over the last 12 months.
While the some lenders got hit by the global financial crisis, credit unions and building societies were able to maintain a stable platform because of their secure member base of 4.5 million Australians. Now as the housing market booms again, new statistics show that credit union and building society market share of the number of new owner occupied home loan commitments has risen to 8.6% in March 2010 from 6.4% a year ago.