Heritage joins national campaign to promote advantages of banking with a building society

Heritage Building Society has joined more than 80 credit unions and building societies around Australia in the latest phase of a promotional campaign to alert people to the benefits of banking with a mutual.

The “It All Comes Back to You” campaign lets people know why mutuals – building societies and credit unions – exist to deliver a better deal to members rather than shareholders.

Heritage is joining the next phase of the campaign, which starts this week. This phase will involve a fresh burst of TV advertising around Australia.

That announcement coincides with the release of new figures showing growth rates in the mutual sector outstripping those of banks.

The Australian Prudential Regulation Authority last week released figures showing the mutual sector grew by 10.7 per cent in 2010, with total assets now above $77 billion. This compares with growth of 4.4 per cent in resident assets for banks over the same period.

It also follows the December ABS results which showed credit unions and building societies writing almost 11% of new owner occupied home loans in Australia – a jump from 6.5% two years ago.

Heritage CEO John Minz said the profile of the mutual sector had never been higher, helped by the Federal Government’s ongoing push to create greater competition in banking.

“The Treasurer has clearly announced a desire for mutuals to become a ‘fifth pillar’ in the Australian banking sector, and his reform package contains a number of measures to help achieve that,” Mr Minz said.

“More and more people are starting to realise that mutuals such as Heritage offer a real alternative to the big banks.

“Because we are owned by our members, not by shareholders, we focus on delivering value back to our members through better interest rates, fairer fees and premium service. At the same time, we must also meet the same strict regulatory requirements as the banks, so we are just as safe and secure.”

Mr Minz urged people to visit the “It All Comes Back to You” website to find out more about the advantages of banking with a mutual.

“The bottom line is that mutuals exist to give the best deal they can for members, not to maximise dividends for shareholders. As the slogan says, when you are a member of a mutual, the benefits all come back to you,” he said.

The ”It All Comes Back to You” website is at www.comesbacktoyou.com.au.

* Home loan comparison rate based on a $150,000 loan over 25 years.  Fixed loan comparison rate applies only for loans with an LVR of 80% or less and a loan amount of $150,000 to $249,999.  WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Interest rates are on a per annum basis. Rates are correct as stated and subject to change without notice. Rates shown are for new loans and do not apply to switches or internal refinances.

Home Advantage Variable rates include discounts shown from the Standard Variable rate. Home Advantage Living Equity rates include discounts from the Living Equity rate. Discounts are based on total lending in the package. Discount Variable LVR rates are for new lending and include discounts from the Discount Variable Loan Rate.  Discounts are not available in conjunction with any other interest rate discount or special offer. All fixed rates are fixed for the period stated and revert to the variable rate applying at expiration of the fixed term. To approved applicants only. Conditions, criteria and fees apply.

Loan to Value Ratio (LVR) is the loan amount divided by the value of your security property (determined by Heritage Bank at assessment), multiplied by 100. Owner Occupied loans have a maximum LVR of 95%, Investment loans have a maximum LVR of 80% and Living Equity has a maximum LVR of 80%. Heritage is not accepting any new investment applications until further notice.

This advice has been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs.

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