Shock rate rise shows need for choice
02 November 2010
Today's move by the Commonwealth Bank to lift variable home loan rates by 45 basis points highlights the need for a competitive banking market.
"If you're not happy with your bank, check out the mutual alternative. There are plenty of credit unions and mutual building societies to choose from," said Mark Degotardi, Acting CEO Abacus – Australian Mutuals.
"Credit unions and mutual building societies already hold around 9 per cent of the new home loan market and we bring a sharp competitive edge to home lending.
"For example, according to Canstar Cannex, 37 credit unions and 8 building societies offer a standard variable home loan rate that is lower than the lowest major bank standard variable rate.
"Credit unions and mutual building societies have 4.5 million customers, more branches than the Commonwealth Bank, one of the largest ATM networks, and market-leading customer satisfaction.
"Real choice exists for consumers in today's banking market.
"Don't listen to the commentators who constantly whinge about the major banks as if there is no alternative to the big four. Make the move to a mutual," Degotardi said.
For more information:
Pamela Eldridge
Senior Adviser - Media, Public Affairs
(02) 8299 9024; 0423 843 790
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