Credit union home loans

Credit unions are smaller, customer-owned financial institutions operating in towns, cities and regions across Australia. For home buyers and property investors, getting a credit union home loan means banking locally and avoiding the Big Four banks while still getting a good deal on a home loan.

Because credit unions are smaller operations, it's a good idea to research one thoroughly before becoming a customer. But that's true of any financial institution.

Bank loans vs credit union home loans

To get more information about the various customer-owned banks (including credit unions, mutual banks and building societies), check out the Customer Owned Banking Association website. Of those, 76 are credit unions. There are plenty to choose from.

What are the benefits of getting a home loan with a credit union?

Go local

If you want to support a local institution rather than one of the Big Four banks, then a credit union is probably your best bet. It's the financial equivalent of shopping local.

The fact that credit unions often put money into local community projects and charities is another benefit.

Member benefits

Credit unions are run on behalf of their members. And many credit unions started out by servicing specific areas or specific professions. If you're a teacher, for example, you may find a teacher-specific credit union offers extra benefits suited to your work and finances.

Will I get a good rate?

Credit unions vary widely. Some of them offer very low rates that compete with the cheapest lenders on the market. And some simply don't. You really need to compare home loan rates and make sure you're getting a good deal.

How do I find the best credit union for me?

Finding the best credit union is a personal decision based on your needs and goals. The best credit union for a retiree in Newcastle could look quite different to the needs of a young property investor living in Townsville.

To find the credit union that works best for you, ask yourself the following questions:

• Does it have the products you need? Some credit unions offer an extensive suite of financial products, from credit cards to home loans to insurance. Others may offer a more limited set of banking services with only a few home loans to choose from.
• Does the credit union operate where you live? Some credit unions only operate in one town or city. You don't need to be living there to bank with them, of course. But if you want personalised in-branch customer service, you want to find a credit union where you live.
• How does the credit union support the community and its members? Consider the credit union's community work, the projects it supports and the benefits it offers to members.
• Customer reviews. Reviews from existing customers is a good way to gauge how good a credit union is, especially in terms of customer service.

Can I get a lower home loan rate with a credit union?

At Finder we track the market's lowest home loan rates every month. And lately, most lenders are offering quite competitive rates. There's very little distance between the Big Four banks, online lenders and credit unions.

We frequently find credit unions and small lenders offering some of the lowest rates around.

Getting a loan with a credit union doesn't mean you're guaranteed to get a better deal, but it doesn't mean you're missing out either. Once again, you need to compare and make sure you're getting a good rate.

Frequently Asked Questions

• What are loans in credit unions?

  Credit union loans are financial products offered by member-owned institutions. They typically provide lower interest rates and fees compared to traditional banks. Credit unions focus on serving their members rather than generating profits for shareholders, which can result in more personalised service.

• How big of a loan can you get from a credit union?

  The size of the loan you can get from a credit union depends on your financial situation, credit history and the credit union's lending policies. Some credit unions may offer loans up to 95% of the property value, similar to traditional banks, but this can vary widely.

• What is the best credit union bank to join?

  The best credit union for you depends on your specific needs, including the loan products you're looking for, the type of customer service you want and your location. Some of the well-regarded credit unions in Australia include CUA (now Great Southern Bank), People's Choice Credit Union and Bank Australia.

Compare other home loan options

1 - 6 of 6

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Name	Finder Score	Interest Rate p.a.	Comparison Rate p.a.	Fees	Monthly Payment
ANZ Plus Home Loan Variable Rate Principal & Interest20% min. depositOwner-occupierOffset account ANZ Plus Home Loan Variable Rate Principal & Interest20% min. depositOwner-occupierOffset account Details Fees Pros & cons Product Name ANZ Plus Home Loan Variable Rate Interest Rate Type Variable Repayment Type Principal & Interest Interest Rate p.a. 6.09% Comp. Rate p.a. 6.10% Minimum Loan Amount $10,000 Maximum Loan Amount $2,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility No Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $350 Pros This loan comes with a 100% offset account There’s no application fee for this loan Track your loan repayments and progress with the app Cons This loan (and cash back offer) is only available for refinancers earning a PAYG income. You cannot use ANZ branches or ANZ Internet Banking to apply for or manage an ANZ Plus home loan. This loan is not available for borrowers in Tasmania and the Northern Territory.	Finder score 9 Excellent	Interest Rate 6.09%	Comparison Rate 6.10%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $909	Continue Compare	$2,000 cashback Borrowers refinancing $250k or more to ANZ Plus before 31st March 2025 could get a cashback of $2,000. Excl. refinancers from ANZ or Suncorp. Other terms and conditions apply.
Unloan Variable Home Loan Principal & Interest20% min. depositOwner-occupier Unloan Variable Home Loan Principal & Interest20% min. depositOwner-occupier Details Fees Pros & cons Product Name Unloan Variable Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 5.99% Comp. Rate p.a. 5.90% Minimum Loan Amount $10,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility No Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $0 Pros A competitive variable rate home loan Automatic interest rate discount No lender fees Cons No offset account You can’t borrow more than 80% of the property value, even with a first home buyer scheme Unloan doesn’t offer fixed rates or interest only loans	Finder score 9.1 Excellent	Interest Rate 5.99%	Comparison Rate 5.90%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $900	Continue Compare
loans.com.au Solar Home Loan Principal & Interest10% min. depositOwner-occupierOffset account loans.com.au Solar Home Loan Principal & Interest10% min. depositOwner-occupierOffset account Details Fees Pros & cons Product Name loans.com.au Solar Home Loan Interest Rate Type Variable rate Repayment Type Principal & Interest Interest Rate p.a. 5.99% Comp. Rate p.a. 6.51% Minimum Loan Amount $50,000 Maximum Loan Amount $1,500,000 Maximum Loan Term 30 years Maximum LVR 90% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option Loan Portable Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $230 Ongoing Fees $0 p.a. Settlement Fee $300 Discharge Fee $300 Pros Available for both owner-occupiers and investors No application or ongoing fees Extra repayments available Cons Minimum loan term of 15 years Late payment fee of $150 Have to pay an extra 0.10% p.a. if you want to add an offset account	Finder score 9.1 Excellent	Interest Rate 5.99%	Comparison Rate 6.51%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $900	Continue Compare
IMB Budget Home Loan Principal & Interest20% min. depositOwner-occupier IMB Budget Home Loan Principal & Interest20% min. depositOwner-occupier Go to site Details Fees Pros & cons Product Name IMB Budget Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.04% Comp. Rate p.a. 6.07% Minimum Loan Amount $10,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable Yes Extra Repayments Yes Application Fee $449 Lender's Legal Fee $0 Valuation Fee At cost Ongoing Fees $0 p.a. Settlement Fee $350 Discharge Fee $350 Pros This loan allows for unlimited extra repayments There are no monthly fees with this loan Eligible borrowers can take this loan out with up to 95% LVR Cons This loan does not come with an offset account You will not be eligible for the full $4,000 cashback if you refinance less than $1million There is an application fee of $449	Finder score 8.5 Great	Interest Rate 6.04%	Comparison Rate 6.07%	Fees Application: $449 Ongoing: $0 p.a.	Monthly Payment $905	Go to site Compare	Up to $4K cashback Eligible borrowers can get up to $4,000 cashback when buying or refinancing with IMB. Loan value criteria applies. Other terms and conditions also apply.
Greater Bank Great Rate Discount Variable Home Loan Principal & Interest-10% min. depositOwner-occupierNSW, QLD & ACT only Greater Bank Great Rate Discount Variable Home Loan Principal & Interest-10% min. depositOwner-occupierNSW, QLD & ACT only Go to site Details Fees Pros & cons Product Name Greater Bank Great Rate Discount Variable Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 5.99% Comp. Rate p.a. 6% Minimum Loan Amount $150,000 Maximum Loan Amount N/A Maximum Loan Term Maximum LVR 110% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $180 Discharge Fee $300 Pros $0 application fee LVR of up to 110% with guarantor Cons Requires a family guarantee Not suitable for all borrowers	Finder score 9.1 Excellent	Interest Rate 5.99%	Comparison Rate 6%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $900	Go to site Compare	Up to $2,500 cashback Eligible refinancers can get up to $2,500 cashback depending on loan value. Full terms and conditions apply.
Mortgage House Executive Saver Low Rate Home Loan Principal & Interest40% min. depositOwner-occupier Mortgage House Executive Saver Low Rate Home Loan Principal & Interest40% min. depositOwner-occupier Details Fees Pros & cons Product Name Mortgage House Executive Saver Low Rate Home Loan Interest Rate Type Variable rate Repayment Type Principal & Interest Interest Rate p.a. 5.89% Comp. Rate p.a. 5.93% Minimum Loan Amount $150,000 Maximum Loan Amount $850,000 Maximum Loan Term 30 years Maximum LVR 60% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option Yes Loan Portable Yes Extra Repayments Yes Application Fee $0 Lender's Legal Fee $395 Valuation Fee up to $300 free Ongoing Fees $0 p.a. Settlement Fee $445 Discharge Fee $500 Pros Cons	Finder score 8.6 Great	Interest Rate 5.89%	Comparison Rate 5.93%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $890	Continue Compare

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Written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

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