Know your banks from your building societies? Don’t worry, you’re not alone. Let us clarify with a who’s who.
This might be the type of lender you’re most familiar with. Banks are typically long-established institutions - and you likely had an account with one from a very young age! They are generally owned by shareholders and listed on the stock exchange.
Also known as non-bank lenders, these privately-owned institutions are neither banks nor building societies as they do not hold a banking licence. But don’t let that put you off, they still must abide by the same laws and regulations which govern all credit transactions in Australia.
Building Societies, Mutuals and Credit Unions
Building societies and credit unions differ from banks and non-banks as they are owned by their members. Rather than passing on profits to shareholders, they aim to pass profits on to their members in the form of better interest rates, lower fees and improved banking products. Some people feel a real sense of loyalty towards building societies and credit unions due to the personalised experience they often receive.
So, what's right for you?
Even though the landscape of lenders may be complicated, there is a way of navigating it with simplicity.
- Do your research and go to your Aussie Broker with an open mind. Rather than overwhelming you with information, your Aussie Broker will work through the different types of loans, features and options available – helping you compare and ultimately choose the right loan.
- If you are nervous about going with a bank, don’t be – the options your broker puts on the table will be right for your needs. If you are nervous of non-bank lenders, don’t be either – Aussie works with responsible lenders. And remember – ultimately it’s up to you, so if you don’t want to go with a particular type of lender, you don’t have to!.
- And don’t be bedazzled by deals. Think about the long run and trust your Aussie broker’s judgement. Just remember, there is no right or wrong answer when it comes to which lender is right, it all comes down to which lender is right for you.
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- Chapter One : Getting started
- Chapter Two : Your Dream Home
- Chapter Three : Money Matters
- Chapter Four : Ways to Purchase
- Chapter Five : Understanding Interest Rates
- Chapter Six : Understanding Home Loans
- Chapter Seven : Lending Sources
- Chapter Eight : Getting Your loan
- Chapter Nine : Choosing a Home
- Chapter Ten : Steps to Settlement