Our home loan is with one of the major banks and we have been discussing refinancing to get a better rate. In our search, it seems the best rates are with credit unions and lenders we have never heard of. We would like to know what the risks are to move away from the bank?
The Major banks have lost ground over the past few years
Yet for the reason you mentioned ( banks we have never heard of ) a large number of consumers do not feel comfortable
However these 2nd and 3rd tier lenders are fantastic and well worth investigating
They have some of the best options
I would be delighted to investigate further
My email address is
as Ross has mentioned some of the smaller 2nd & 3rd tier lenders are able to offer better rates often because they don't have the overheads of the majors.
Lenders like ING & CUA are probably better known but there are also credit unions that are more customer focused. There are some great options available. In terms of risk, these lenders have to meet the same regulatory requirements as the big 4 so from my perspective the risk is minimal.
There is no risk with moving to a smaller or less well known lender at all. They are generally able to offer competitive rates because of the reasons the other guys have mentioned. They don't have lots of branches and lots of staff is one of the main ones.
You must still meet their criteria which may be the type of income you earn or the amount of equity you have and your credit history in order to qualify for the sharp rates.
I would be very happy to assess your specific situation and your ongoing needs and help you to achieve a really competitive rate.
Mobile Lender Ringwood
We actually got our compliance manager to properly research this and write a great article so people truly understand the risks of getting a loan through a small lender (spoiler alert, not much!)
Check it out at