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ISCOVER
Steven Cross
Proving the mutual sector is alive and well, one credit union has launched a product that vows to be one per cent lower than the average standard variable rate of the majors.
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CUA’s bundled home loan product, Rate Breaker Package, was designed to go “head to head” with the majors, according to the lender’s chief executive Chris Whitehead.
“There is currently no other product available in the market that has the same pricing mechanism as the CUA Rate Breaker Package,” Mr Whitehead said.
“By offering Australians a home loan product that pegs its rate directly against the rates of the Big Four, we’re beating the banks at their own game.”
At the moment, the average SVR of the majors is 7.04 per cent, which makes CUA’s Rate Breaker 6.04 per cent per annum – however this will change over the next few days as the majors announce their rate movements.
“Our business model gives us the flexibility to make long term rate decisions that are in our customers’ best interests. Our profits are reinvested back into the business to deliver superior products, better interest rates and lower fees,” said Mr Whitehead.
“We’re committed to offering Australians the best deal we possibly can. Since April 2010, CUA’s Standard Variable Home Loan rate has consistently been at least 50 basis points cheaper than the average of the Big Fours’ equivalent products.”
The package includes a fee-free transaction account, no establishment fees, discounts on home and contents insurance and an annual fee of $350.
