Login
ISCOVER
The mortgage market has become even more competitive after another lender cut its fixed rates and waived its fees.
CUA announced it had reduced rates for its premium range of fixed-rate home loans to those of the lender's basic range of fixed-rate home loans.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
One-year, two-year and three-year premium rates are now 4.89 per cent, while five-year premium rates are now 5.50 per cent (see table below for details).
Borrowers can make extra repayments without penalty and can also link a 100 per cent offset account to the loan.
CUA also announced that it would waive all establishment fees for new home loans with an LVR below 80 per cent.
The credit union has also waived the first year pro-rata package fee for Rate Breaker Package home loans.
Mortgage Choice franchisee Mark Waugh said the rate cuts had made a good product even better.
“This is a great opportunity to provide my clients with a premium service at a basic price,” he told The Adviser.
“The reason I’m really encouraged by this is because the product is so functional it’s not funny.”
Paradime Home Finance owner Ian Jervis said the 100 per cent offset account differentiated CUA from most of its rivals.
“It provides a different dynamic when you can say there is no penalty or cost for offsetting the loan,” he said.
CUA head of product Mark Petty added that the credit union’s interest rates are consistently among the lowest in Australia.
“For example, our basic three-year fixed-rate home loan has been lower than the average of the big four banks since September 2011,” he said.
“And our standard variable home loan rate has been lower by at least 0.50 per cent since April 2010, compared to the average of the big four banks’ equivalent products.”
