I’ve been comparing home/mortgage loans online and also talked to mortgage brokers and here are some findings I want to share with you.
1. Mortgage Brokers WILL always say that home loans from banks are better. Ask them why and they will tell you that they have better reputation. Quite true, but you will have to pay more compared to loans from credit unions + building society.
2. Credit unions and building societies usually have the lowest home loan rates, period. Their common selling point are socially responsible, business owned by the people/community, contributing back to the community etc, unlike big banks whose main interest is more on shareholders return and making sure the CEO and board of directors get a big fat paycheck.
3. The only complaints with credit unions might be customer service, but the same problem can happen to any big banks too.
4. Mortgage brokers are paid commission by the banks or financial institutions when you apply a home loan with them. I wonder if they get paid commission if the loan was to go through with a credit union or building society?
So shop around and talk to people to see where they get their home loans from and what’s their experience. I still do my money savings with the banks (they pay the highest savings interest so they can charge a higher interest rates on home loans) while take a home loan with one of the leading credit union / building society since they charge the lowest home loan interest rates.