Aussie credit unions 'offer some of the cheapest home loan rates'

Some of the cheapest home loan rates can be found at Aussie credit unions and building societies, one publication has noted.

Aussie credit unions offer some of the cheapest home loan rates on the market, according to one publication.

A piece in the Sydney Morning Herald noted that some building societies can also provide inexpensive levels of borrowing, while the Commonwealth Bank and Westpac - which offer a range of credit cards - also have low rates.

But ABA chief executive Steven Munchenberg noted that, while credit unions and building societies are friendlier places to do business, banks offer a wider range of services - which could include savings accounts - as well as better branch and ATM coverage.

However, an 2009 annual review of building societies and credit unions by KPMG stated that financial institutions weathered the economic crisis in positive shape after "sticking to their knitting''.

This news comes after JP Morgan economist Helen Kevans noted earlier this year that an interest rate rise was having an impact on the home loan demand, the Australian Associated Press reported.

By Joe Letts