Finding the perfect home that checks all your boxes is critical, whether you’re on the hunt for a fixer-upper or something that’s move-in ready. But choosing a mortgage that works for you and your needs, as well as getting the best rate, is just as important. If you’re in the homebuying process, consider these reasons to get a mortgage through a credit union.
Mortgages Through Credit Unions vs. Banks |
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|---|---|---|
| Feature | Credit Unions | Banks |
| Interest rates | Typically lower due to not-for-profit model | Often higher to generate profit for shareholders |
| Fees | Lower fees and more flexibility | Higher fees and less flexibility |
| Personalized service | More personalized, member-focused experience | More transactional, less individualized |
| Loan approval process | More flexible lending criteria and member-friendly | Stricter underwriting guidelines |
| Membership requirement | Must meet eligibility requirements (e.g., live or work in a certain area) | Open to the public |
Credit unions offer lower mortgage interest rates
A credit union is a not-for-profit financial institution that is owned by its members rather than shareholders, so it’s able to return profits to and invest in members. That’s why credit unions can typically offer lower mortgage interest rates on fixed-rate and adjustable-rate loans. As of March 2025, a 30-year, fixed-rate mortgage with a credit union has an average rate of 6.68%, according to the National Credit Union Association. However, a mortgage with the same terms but from a bank has an average rate of 6.81%. Even though the difference is small, it still helps you save money in the long run. Dozens of factors determine your rate and providing a loan, so the best way to know what rate you qualify for is to contact the financial institution directly for a quote.
There are fewer and lower fees
There are dozens of costs and fees in addition to a down payment that are associated with getting a mortgage—closing costs, origination fees, vendor fees, and other processing costs. Credit unions prioritize helping people instead of turning a profit. So, when you have a mortgage with a credit union, origination fees, private mortgage insurance, and processing costs are often reduced. These lower fees can save you thousands of dollars.
Credit unions are less likely to sell your loan to other financial institutions
Mortgage lenders typically sell a mortgage for two reasons: they need to open more lines of credit to lend money to other borrowers, and they make money from the sale. Usually, having your mortgage sold isn’t a big deal. However, when your mortgage is sold, this can sometimes result in confusion regarding where you should make your payment. If your mortgage payment is made to the wrong institution, you could incur late fees. Credit unions don’t typically sell their mortgages because their ultimate concern is to preserve the relationship between the institution and the member. Here’s how this benefits borrowers:
- Consistent service: Borrowers typically deal with the same institution throughout the life of their loan because credit unions typically retain the loans they originate. Consistency in service ensures that loan officers and support staff are familiar with each member’s financial history, which gives them the ability to offer personalized advice and quickly address any issues that might arise.
- Reduced payment confusion: When a credit union holds onto the loan, the communication channel remains clear and direct. Unlike loans that are sold to third parties or other loan servicers, borrowers aren’t forced to adapt to new payment systems or run into unexpected changes in terms. This minimizes the risk of payment errors or misunderstandings, ensuring that members feel secure and well-informed about their obligations.
- Stronger relationships: By retaining the loans, credit unions can invest in building long-lasting relationships with members. This fosters trust because borrowers know that they’re working with an institution that prioritizes their well-being over short-term profits. Credit unions can also offer tailored solutions, proactive financial advice, and continued support that adapts to their members’ changing needs.
Even though credit unions don’t often sell their mortgages, it’s best to refer to your contract just to be sure.
Credit unions provide more personalized service
Credit unions are often more attuned to their members’ needs, so they tend to offer better customer service and flexible lending criteria than traditional banks. They normally serve a selected area, so they can focus on what specifically will benefit its members or how they can help when members are in need. Credit unions are dedicated to preserving the relationship between its members and ensuring their best interest is served. Plus, it’s easier to receive services and better customer support through a local credit union with which you have a relationship.
Branch access and digital service options
Credit unions may not always have as many physical branches compared to national banks, but credit unions are fully committed to maintaining a strong digital presence. We know that not everyone can visit a branch in person—that’s why we offer digital banking services, including a user-friendly mobile app that allows you to manage your mortgage and other financial needs securely and efficiently.
Many credit unions now have also invested in remote assistance options, like video calls and chat support. This lets you get the help that you need or the option to discuss your mortgage choices from anywhere.
How to become a member
If you’re not a member, most credit unions offer a straightforward process. At Georgia’s Own, you can become a member one of three ways: live or work in one of 77 counties throughout the state; work for one of our 600+ partner companies; or be related by blood, adoption, or marriage to a current member. If you meet the requirements and are approved, all you need is a $5 deposit to establish your membership, which represents your share in the Credit Union. Requirements at other institutions vary.
What about after closing?
Credit unions treat members like people—not just another account number. If you have a question about your payment or need help navigating a financial hardship, you’re able to speak with a representative who’s familiar with your situation and may be able to help.
Plus, if unexpected life changes affect your ability to make payments, credit unions are more likely to work with you to find a solution. That might include loan modifications, payment deferral options, or financial counseling—always with your long-term financial well-being in mind.
Bottom line
Credit unions offer a member-first approach to mortgages, combining competitive rates, lower fees, and personalized service that you can count on. With strong loan retention, ongoing support after closing, and convenient digital tools, they provide a seamless and trustworthy borrowing experience.
If you’re purchasing a home, consider Georgia’s Own for all your financing needs. We offer lower interest rates, up to 100% financing, flexible loan terms, a program for first-time home buyers, and more—we even provide refinancing options. Ready to start making memories in your dream home? Click here to learn more about our mortgage options or apply today.
