The following article was published in the BrokerNews magazine and was written by Andrea Cornish and it was interesting reading.

Andrea goes on to say that The Australian Bankers’ Association (ABA) is challenging research used by the peak industry body for Credit Unions and Building Societies.  

The ABA says Abacus is using misleading information in it’s claim that “…..homeowners with a mortgage from a credit union or building society are $35,000 better off over the life of a loan”.

 Chief executive of the ABA Steven Munchenberg called the research “deceptive”.

 “The research done by Infochoice is concerning because it doesn’t reveal to customers the average interest rate charged across credit union/building societies,” he said.

Infochoice selectively used the best variable rates from only four credit union/building societies but did not make the same comparison for the banks. It compared apples and oranges when it should be a like for like comparison”.

According to Munchenberg the vast majority of bank customers with home loans do not pay the advertised standard variable rate.

 Individual Home Loans has over 30 lenders with varying interest rates and conditions. If you would like to find out more about this article please contact John on 07-49722081 or via email on jwhitten@ihl.net.au