Message From The CEO

9 March 2009

In delivering on our commitment to provide to our members quality financial products and services with our award winning customer service, we have recently undertaken a very broad market review of Home Loan products and in particular the features and benefits and charges.

The review of the market was extensive and at the same time the findings could best be described as confusing in trying to determine what a lot of Home Loan products offered and more importantly at what overall cost. There is a real need in the lending area for all borrowers to fully ascertain all costs including fees and charges and not just a headline interest rate.

We believe our revised home loan product strategy is clear and much easier to understand with pricing, features and benefits that are superior value for our members. Whether starting out as a first-time homebuyer, purchasing your next home or refinancing your current home loan, you will find our loan products are competitive, flexible to your needs and convenient. We now have three options to choose from:

• A variable interest rate premium home loan package - Home Sweet Home Loan
• A variable interest rate standard home loan - Live Life Home Loan
• Fixed interest rate home loan with a choice of one year or three year term

Our Home Sweet Home Loan product is, from our own market analysis, one of the best premium home loan packages in terms of overall value for the member. We have adjusted the package with the maintenance of the competitive interest rate and the introduction of an annual package fee.

The annual fee of $320 for the Home Sweet Home Loan Package is very competitive and members electing to take the Home Sweet Home Loan Package will have the following features available with their Home Loan:
• Up to 50 Free Personal Banking transactions per month noting that all deposits are free transactions for all members
• Free redraw facility
• Additional loan repayments are allowed that can save you money by paying less interest overall during the term of the loan
• A 100% Offset Account
• Option to "Skip-a-loan" repayment once each year
• Option to implement reduced repayments during a Maternity Leave break
• Loan Portability with no additional fees, enabling the loan to be transferred to another security property if the initial home is sold
• Free detailed financial health check to ensure that all products and services are truly meeting your needs including an Annual Loan Review

The Live Life Home Loan is our variable interest rate Home Loan product for those members who do not want all of the premium features and benefits of the Home Sweet Home Loan Package and again this product aligns very well to the Standard Home Loan packages in the marketplace.

The Live Life Home Loan product has a 0.25%pa higher interest rate than the Home Sweet Home Loan and it obviously does not have the annual Home Sweet Home Loan Package Fee of $320pa. It does have an $8 per month Loan Service Fee and that again is very common in the Standard Home Loan market.

The Live Life Home Loan has the following features:
• Up to 50 Free Personal Banking transactions per month noting that all deposits are free transactions for all members
• Redraw facility with a $20 per redraw fee
• Additional loan repayments are allowed that can save you money by paying less interest overall during the term of the loan
• Loan Portability enabling the loan to be transferred to another security property if the initial home is sold
• Free detailed financial health check to ensure that all products and services are truly meeting your needs including an Annual Loan Review

We also continue to offer members the choice of very competitive one and three year fixed rates for home loans. Such loans do not have the additional features and benefits of our variable rate home loans.

I invite those of you that have never experienced the full Holiday Coast Credit Union banking difference to make the switch and let us at Holiday Coast look after all of your financial needs.

I guarantee that you will very quickly experience the difference and the sense of belonging as we at Holiday Coast deliver the promise of Holiday Coast Credit Union… every day that you do business with Holiday Coast Credit Union is a great day.