Credit unions lend funds for housing to members who usually belong to a common employer. The interest rate charged varies between credit unions and the term is usually 15 years. They are a popular source of finance when additional funds are required to bridge a deposit gap and for personal purposes. Their fees are generally, less than that for banks.
Credit Unions are safe reliable institutions governed by the same regulations as banks. Federal government regulation and legislation has applied equally to all banks an credit unions since 1999. The same depositor protection provisions of the Banking Act apply to both.
APRA ensures that all credit unions, banks and building societies maintain a sound financial position. Credit unions comfortably comply with the regulator's requirements and enjoy an excellent safety record. APRA works to prevent instability in the Australian financial system by checking that financial institutions act with integrity and prudence. It collects and analyses information about the institutions it regulates and evaluates their effectiveness.