Credit Unions positioning themselves.
The Credit Union Services Corp of Australia has announced an initiative to give the Credit Union section of the Home Loan market a more competitive edge.
CUSCAL plans to launch a new subsidiary, Integris Home Loans, which will go to the Credit Union market with an initial $200 million package of new loans. The existing arrangement with Members Mortgage Australia, which will be replaced by Integris, has already securitised $200 million since CUSCAL received an AA– rating from Standard and Poor’s last year.
It is believed the new arrangement could cut up to 35 basis points from the loans offered by Credit unions.
Of course it will be up to the individual Credit Union as to whether they pass on the saving to their customers, but given the stiff competition from the originators and banks, it would seem that they need to, to build their slice of the home loan market.