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ISCOVER
Staff Reporter
Showing credit unions are still a viable alternative to the majors, one lender has passed on the full 50 basis point rate cut to borrowers.
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Last week, Macarthur Credit Union slashed 0.5 per cent from its standard variable rate – taking the new home loan to 6.55 per cent.
According to Macarthur Credit Union’s general manager David Cadden, the lender decided it was in the best interest of its borrowers to pass on the full rate cut.
“This reduction will save members, with an average mortgage of $250,000, approximately $104.16 per month or $1,250.00 a year and bring some much needed relief within household budgets,” he said.
“Unlike the banks our shareholders are our members and we only operate on behalf of these members. Because of this, our profits can be returned to our members through competitive interest rates and fees; we don’t need for high dividends to pay our outside shareholders.”
