What are Housing Cooperatives?

A housing co-operative is a legal association formed for the purpose of providing housing finance to its members. It is owned and controlled by its members. A cooperative is distinguished from other housing associations by its ownership structure and its commitment to co-operative principles.

Housing cooperatives exist for their members' mutual benefit. They share with other cooperatives the values of individual responsibility, mutual help, democracy, equity, and solidarity. They should always conduct themselves honestly and openly.

We recognise that our members each have their own special needs and require individual attention. We are committed to providing this service.

We strive to provide financial accommodation that is affordable and equitable. We act with integrity and do not show bias in our financial decisions. We lend money by our rules, which are set by our members and overseen by the Society’s democratically elected board of directors.

We respect and uphold the international commitment of the worldwide cooperative principles.

Cooperative Housing Societies lend money for residential purposes only. They do not hold deposit accounts, as do banks. In Queensland they are supervised by the Queensland Treasury Corporation and regulated under the Financial Intermediaries Act.

Cooperative Housing Societies receive parcels of money from banks and other institutions, which are held on the Society’s balance sheet - making the Society “the lender”, and duly making the Society responsible for any accrued losses. A board of Directors oversees each Society on behalf of all of the members.

The Housing Cooperative becomes custodian of all Members’ mortgages and titles until their loans are paid out.

Members who make their home loan payments on time will receive a distribution of any profits made by the Society on a yearly basis. This effectively lowers the members’ interest rate.

The free redraw facility, easy repayment options and personal service make lending through housing cooperatives more favourable than any bank or finance institution.

Who can become a member of a Housing Cooperative?

The Housing Cooperative program is about lending to people who want personal service and flexibility. These people can be AAA+ candidates or have credit problems. The type of customer that enjoys belonging to a housing cooperative is one who believes in old fashioned personal service. The cultural philosophy of housing cooperatives, is to help keep people in home ownership. Interest rates are very competitive, particularly when considering that the Society’s profits are rebated to to its members.

The types of loans that housing cooperatives can consider are:

• Residential home loans
• Residential investment loans
• Customers with a negative credit history
• Rural and rural residential areas
• Land only loans (with an intention to build)
• Construction loans including owner-builders, removal homes and kit homes
• Centrelink recipients
• People that require urgent settlements
• Short term employment
• Overseas Citizens
• Up to 30 year loans for the “Over 60’s” age group
• Gifted deposits
• Refinance of wrap mortgages

Housing Cooperatives can only lend on residential security and cannot lend for business purposes (ie. business or commercial loans).

What Facilities Do Housing Cooperatives Offer?

• Free redraw
• Payments by BPAY, internet banking for loan payments, direct debit, salary credit
• Variable rate home loan
• Principal and Interest or Interest only – 1-5 years (no fixed rates available)
• Refinances and debt consolidation

Product Parameters - Unacceptable Securities

• Defence Force Housing Loans
• Inner City apartments that are studios or bedsitters
• Serviced Apartments or Motel Accommodation
• Loans in remote areas
• Land loans where there is no genuine intent to build
• Company titles