Community First Credit Union has mortgages that cater for the following customers:

• First home buyers
• Investors
• Renovators/home builders (construction loans)
• Self-employed (low-doc loans)

Community First Credit Union home loans come with the following interest rate options:

• Variable rate
• Fixed rate
• Principal and interest
• Interest-only
• Split loans

Community First Credit Union home loans might also suit borrowers with low deposits. It lets owner-occupiers borrow up to 95 per cent of the property value (with mortgage insurance), and investors borrow up to 80 per cent of the property value. Repayments can be weekly, fortnightly or monthly.

Extra repayments can be made on Community First Credit Union without penalty, and redraw facilities are also available (but come with a small fee). As added incentive, the credit union offers home loan customers fee-free transaction accounts as well as discounts on its other financial products and services.

Community First Credit Union’s home loan interest rates vary depending on the product. However, compared to other home loan lenders in Australia, its interest rates tend to be moderately low.

As a smaller, community-based lender, without the marketing power of the big banks, it offers lower mortgage rates to attract customers. As Community First Credit Union is owned by its customers, rather than shareholders, it also does not have the same pressure to make big profits, giving it the ability to offer lower rates and fees.

Home loans offered to owner-occupiers by Community First Credit Union, paying principal and interest, are generally moderately low compared to other lenders in Australia. Its investor mortgages rates are also moderately low. The credit union also offers a discounted interest rate to new customers that is very low.

In keeping with its name, Community First Credit Union focuses on serving its local customers. Most of its staff live in the same areas as its customers, which it says gives them a better understanding of customers’ home loan needs.

Community First Credit Union has 14 branches in New South Wales, most in Sydney. In recent years, the credit union has expanded its online services to gain customers throughout Australia.

As well as offering moderately low interest rates, Community First Credit Union charges no ongoing monthly or annual fees on its home loans. However, the upfront one-off application fees on home loans are high compared to many of its competitors, and it also charges a discharge fee at the end of the loan.

Community First Credit Union doesn’t cater for all borrowers. For example, it doesn’t offer SMSF loans, reverse mortgages or 40-year home loans.