Credit unions offer best loan rates

Mutuals are currently offering the best available variable interest mortgage rates, at 6.57 per cent, compared with the best rate among the big four banks of 6.75 per cent.

However, this is before any ”package” discount, which can shave 0.5 to 1 percentage points off a rate. Nearly 70 per cent of mutuals' variable loans came with no ongoing fees, compared with just 13 per cent of big four variable loans, though the average ongoing fee, when one applied, was much higher for mutuals: about $160 versus $90.

In fixed-rate loans, the best advertised rate was 5.99 per cent from CUA and the Queensland Credit Union, compared with the best advertised big four rate of 6.34 per cent from ANZ and NAB.

Loan growth of 8.4 per cent and deposit growth of 9.6 per cent by credit unions and mutual banks exceeded the big banks (7.0 per cent and 8.0 per cent respectively), in the last 12 months.

Source: The Age