Cheapest home loans

[Bob]

When you arrive, you will probably find a place to rent for a few months before deciding which area you like and want to buy a new home in.

In the meantime, you'll also start earning an income and that will involve you choosing a superannuation scheme to belong to for the employer to lodge 9% of your wage / salary into.

Almost every superannuation scheme in Australia has joined together to help its members get finance cheaply for things like purchasing a new home, a new car, a trip overseas, renovations to the house, etc.

The super schemes have pooled millions of dollars of superannuation money into a fund called "Member's Equity" which YOU, as a member of a participating superannuation scheme, can tap into.

Member's Equity started in the mid 1990's when the super schemes first pooled their money into it and has since applied for a fully-fledged banking licence from the Australian government, which it received in 1999.

"Member's Equity" can offer you all the services that a bank in the High Street can offer . . . . . home loans, personal loans, a savings account, withdrawals at the supermarket by card, credit card facilities, etc. etc.

It does this at substantially lower cost to you.

Member's Equity only have one office in each State and you won't see their "banks" down every High Street in every Australian town. They don't advertise much, so keep their running costs down, but they are one of Australia's best kept secrets for finance.

Visa / Mastercard from a High Street bank typically charge around 15% interest.

Member's Equity Mastercard charge 10.9% interest.

A home loan with a High Street bank typically charge $600 "establishment" fee for setting up the loan, 7.07% interest and an "admin charge" of $8 to $12 per month on the home loan, + other "service fees" from time to time . . . . . . . coming out of YOUR pocket!

Member's Equity have NO establishment fee, No admin charge and NO service fees. . . just a plain 6.57% interest

If you can find a better source of money, then go for it . . . . just read the fine print first, because if it's too good to be true, it usually is!

www.membersequity.com.au

[Riekie]

Thanks Bob! As soon as our PR is finalised, we'll be buying our first home too, and I dreaded the task of finding the right loan! In RSA it is a simple case of going to your bank, but here, there's so many options, (all with "conditions apply" fine-print) you just don't know where to start! Thanks for that!

[Cindylou]

Hi Bob

I know that some of the Aus banks have a service where one can open an account on the internet prior to arrival and once in Aus you provide the required documents and can have access to the account. I can't find any similar option on the ME site, do you know if this is possible?

Cindylou

[Bob]

Member's Equity only opens a bank account to its members. To qualify, you must belong to a participating superannuation scheme (like the one you will have at work) or professional association / trade union.

My advice is to open an account with a "High Street" bank like the Commonwealth Bank, National Australia Bank, ANZ Bank or Westpac Bank and bring all your funds into the country that way. Just don't borrow from them in a big way without checking out Member's Equity Bank first.

By the time you're ready to look around for that special home you have in mind in Australia, you'll have been in the workforce for a while, opened a super account and will be eligible for a loan with Member's Equity.

It seems, from an Australian's point of view, that every man and his dog is banging on Australia's door to come in and set up shop. . . . our lifestyle is pretty appealing to many overseas folk. Some we want. Many we don't.

In 1986, the Labor gov't of the day tried to bring in an identity card for all people in Australia . . . the "Aussie" card.

In essence, I agree with the idea but Anglo-Saxons have never had ID cards and don't warm to the idea easily. No English-speaking country has identity cards, South Africa excluded.

The legislation failed to pass thro' parliament, so the Australian gov't brought in lesser checks to help with identity fraud.

One of those was the Tax File Number being necessary to avoid a penalising tax on your pay packet. Also, to open a bank account, you needed sufficient ID.

On opening an Australian bank account nowadays, you need 100 points. Basically, a driver's licence is 50 points, passport 60 points, Medicare card 40 points, etc.

Each item is awarded a certain number of points towards verifying your ID, so bring enough along to complete your business, whether it's opening a bank account, getting an Australian driver's licence, getting the telephone put on at your place of dwelling, starting work, etc.

Member's Equity will detail how you can satisfy ID provisions by telling you how and what to bring along on opening an account.

[zappa]

Thanks Bob! VERY useful info!

[Riekie]

If you wanted to get an idea of what your homeloan repayments would be, this chart might help. (It is calculated over a 30 year period and based on weekly payments):