Credit unions get personal

Big banks don't like personal loans, they are small and you can't make a lot of money and there is no security offered. So it's good to have a customer-friendly alternative for those car loans and other unsecured loans.
As the banks losses in other areas start to sink in, banks and other financial institutions have become increasingly reluctant to provide certain types of loans, pulling back on marketing unsecured finance - personal loans and credit cards to get the balance of risk and return redressed.
If you are looking for a loan to finance a car, renovate the home or an overseas holiday, you might have to be prepared for some legwork.
Recent figures show consumer lending has slowed dramatically in recent months. This trend results from a combination of factors including consumers tightening their belts and reducing their borrowings and lenders tightening their lending criteria.
In one example, the Queensland insurance and banking group Suncorp reported its consumer lending business was down more than 6 per cent in the September quarter.
The trend is evident across the industry. Reserve Bank figures show personal lending fell in each of the five months from June to October, a level of weakness that has not been seen for 15 years.
One group of institutions still open for business is credit unions. Their executives believe the times suit the way they do business, providing member services at reasonable cost.
Queensland Police Credit Union executive manager corporate services, Stephen Howell, says: "The credit union sector has been relatively undamaged by large jumps in bad debts the banks have experienced. It is business as usual for us."
SO if you are looking for a personal loan, try your friendly credit union.

Mortgage Rate cuts are hurting those who fixed their home loan rates at the highest point in the mortgage rate cycle

As predicted by Mr Mortgage for the past ten years, those who fix their mortgage rates will lose money.
The people that mortgage rate reductions are hurting most are the one's who recently took other so called experts advice and fixed their home loan mortgage rate, at what has turned out to be, the then highest rate its been this century, whilst watching rates fall to the lowest rates, maybe ever!
As soon as home loan mortgage rates start to climb, banks and the media start to talk up fixed interest rates.
What's wrong with that?
Well if the banks thinks it a good idea, then bet your last dollar that it will be bad for the homeowner. What is good for Banks is not always aligned with what's good for their mortgage customers.
There has only been two occasions that I can recall slim windows for a three year fixed loan to give you any sort of advantage.
About three and seven years ago. Once those tiny windows past fixing your interest rate was a losing proposition.
Unlike the US market were a 30 years fixed was a good idea, and adjustable rate mortgages are a bad thing that has contributed to the pain of the financial credit crisis.
Rates are predicted to fall much further so read my lips. Take the ride down the interest rate elevator as the Reserve Bank pulls on its levers to soften any economic hurt that this looming Global recession may have on your economic situation.
If you must fix, wait till we are at rock bottom, and that could be in 18 months time, and then maybe fix for three years.
Remember we are going through new territory and the landscape is changing and we may be soon seeing the cheapest money ever on offer in two or three years time. Nobody knows.
Enjoy the ride with a variable interest rate or squirm with a fixed one. Its your choice.
Mr Mortgage