Credit unions & building societies: a competitive lending option for all consumers
03 September 2009
Media commentary this week suggesting the big banks are writing 100% of all mortgages is not true.
Credit unions and building societies are by far the most dominant alternative mortgage providers, writing around 7 out of every 10 new mortgages approved outside of the banks. That's 40% more than this time last year.
Credit unions and building societies across Australia are approving close to 5,000 new mortgages on average per month, getting back to the levels seen before the GFC took hold. Credit unions and building societies have helped almost 47,000 Australians own their own homes in the past year.
Credit union and building society mortgage approvals for the three months ended June 09 are 26% above the level of 12 months ago.
The media commentaries appear to be based solely on APRA data released on Monday that relates only to bank lending, not any other lenders, and appears to be based on loan balance growth - not new mortgage approvals.
While the market dominance of the big four banks is indisputable, credit unions and mutual building societies remain an essential competitive alternative for Australian borrowers, having maintained their market share of new loan approvals.
"While competition is clearly taking a battering, consumers can be heartened that credit unions and mutual building societies are actively lending and offering Australians a great alternative," said Louise Petschler, CEO of Abacus - Australian Mutuals, the industry body for credit unions, mutual building societies and friendly societies.
For more information:
Pamela Eldridge
Senior Adviser - Media
02 8299 9024, 0423 843 790
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