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CUA has reduced all of its fixed rates for the second time in two months, with some cuts as large as 34 basis points.
The credit union announced yesterday that it had reduced its one-year fixed rate from 4.49 per cent to 4.29 per cent and its two-year rate from 4.59 per cent to 4.39 per cent.
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It also lowered its three-year rate from 4.59 per cent to 4.25 per cent and its five-year rate from 4.89 per cent to 4.55 per cent.
The reduced rates apply to new loans that are fully approved on or after April 21.
CUA’s general manager of products and marketing, Jason Murray, said the credit union would review its rates again if the Reserve Bank lowers the official cash rate next month.
“This is the second time we’ve dropped our fixed rates following the Reserve Bank decision to drop the official cash rate in February,” Mr Murray told The Adviser.
“CUA is constantly reviewing what is happening in the home loans market, so we can remain competitive and provide better value banking products to our customers.”
Mr Murray said this latest round of cuts gives brokers a competitive and diverse range of options to offer new customers.
“CUA's Premium Fixed home loans also offer features that haven’t traditionally been available with a fixed rate, including unlimited extra repayments, free redraw and a 100 per cent multi-account offset,” he said.
By historical standards, home loan customers are reaping the benefits of a very competitive lending market at the moment, according to Mr Murray.
“Competition is being fuelled by record-low interest rates and strong housing markets in a number of Australian cities,” he said.
“It’s a great time for customers to be shopping around not only for a good rate, but also for the loan which offers the best features.”
At least four third-party banks have announced rate cuts this month: Adelaide Bank and Homeloans reduced their variable rates, while ME Bank and Suncorp Bank reduced their fixed rates.
[Related: CUA reports record loan volumes]
