Why Aussies are choosing customer owned banks over the big four

By Polly Fleeting · Tuesday, 17 September 2019 · 3 min read

Fact Checked

Aussies are continuing to jump out of bed with the big four and are instead getting cosy with customer owned institutions for their banking products.

This is according to latest Quarterly ADI Statistics from the Australian Prudential Regulation Authority (APRA), which found that over the last year the customer owned banking sector has grown by 7.8% - an impressive 5.2% more than major banks.

Since the two RBA cash rate cuts a few months ago, customers have been able to find lower rates on products like home loans, including those offered by credit unions, mutual banks or building societies.

Customer Owned Banking Association CEO Michael Lawrence, believes that the success of these institutions is that, for them, it’s all about the customer.

“Australians want, and deserve, to be put first by their bank. Thankfully there’s an entire sector with a 150-year legacy of doing just that,” he said.

“These figures are a positive indicator of improving competition, but now is not the time to become complacent. If greater customer outcomes are the goal, then greater competition is the means.”

When it comes to home loans the proof is in the pudding. So take a look at a few of the customer owned institutions offering some hot deals at the moment and see if it’s time for you to make the switch.

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Comparison rate warning

WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

How Initial Monthly Repayments figures are estimated

Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

Great Southern Bank - Achieve Variable Home Loan

3.18% variable rate (3.23% comparison rate*)
Free extra repayments and redraw facility
Partial offset account available

Find out more

The CUA Achieve Variable Home Loan could have everything you need, offering a competitive rate of 3.18% (3.23% comparison rate*) and a bunch of handy features. Not only are there complimentary extra repayments and a useful redraw facility on this loan, if you wish, you can set up a partial offset account (up to $15,000) to help you reduce the amount you pay interest on. Who doesn’t love a little flexibility with a side dish of savings?

Heritage Bank - Variable Rate Loan

Variable rates from 3.37% (3.73% comparison rate*)
2019 Mozo Experts Choice Award^
100% offset account

Find out more

There’s a reason our expert judges loved the Heritage Bank Variable Rate Home Loan, it combines a solid 3.37% (3.73% comparison rate*) with some flexible features like a 100% offset account and complimentary extra repayments. Picking up a 2019 Mozo Experts Choice Award for best Packaged Home Loan, this could be a great loan for you!

Newcastle Permanent - Special Real Deal Home Loan

3.32% variable rate (3.36% comparison rate*)
2019 Mozo Experts Choice Award^ double winner
Free extra repayments

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Newcastle Permanent’s Real Deal Home Loan is the real deal when it comes to a versatile home loan. Not only do they offer a 3.32% variable rate (3.36% comparison rate*), you can make complimentary extra repayments whenever you need. And it’s not just a good choice for owner occupiers either, because this loan took home not one, but two, 2019 Mozo Experts Choice Awards^ in both the First Home Buyer and Investor Home Loan categories.

Bank Australia - Basic Home Loan Special

3.35% special rate (3.36% comparison rate*)
No monthly fees
Borrow up to 80% LVR

Find out more

If you need a no-frills home loan that ticks all the boxes, the Bank Australia Basic Home Loan could be your one stop shop. This loan offers a standard variable rate of 3.55% (3.56% comparison rate*) and a lower special rate of 3.35% (3.36% comparison rate*). That’s not all, there are flexible repayment options as well as no pesky monthly fees to worry about.

^Find out more about the 2019 Mozo Experts Choice Awards for Home Loans.

Looking for something more? Head to our home loan comparison table to weigh up different providers or take a look at our useful guides and tips.

^* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

^** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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