CUA cuts rates on Fixed Rate and Standard Variable Home Loan Products

04/05/2012

CUA, Australia’s largest customer-owned financial institution, today announced it will cut rates across both its Fixed and Variable Home Loan product suites. CUA’s Three Year Fixed Rate Home Loan will be the best rate in the market at 5.89% whilst the Standard Variable Home Rate has been reduced to a highly competitive 6.47%.

These rate cuts make CUA’s Three Year Fixed Rate Home Loan an average of 55 basis points lower than the average of the big fours’ three year fixed rate home loans. CUA’s decision to reduce its variable rate ensures that its standard variable rate remains over 50 basis points cheaper than the average of the standard variable rates offered by the Big Four banks.*

CUA’s rate cuts are effective from Wednesday 9 May 2012.

Jason Murray, CUA’s Acting General Manager, Products & Marketing, said, “CUA is committed to offering customers the best deal we possibly can. Because our customer-owned model enables us to focus entirely on our customers, not on shareholders, we have more flexibility to make rate decisions that are in their best interests.

“Today’s rate cut announcement to our Fixed Rate Home Loan product suite means CUA now offers Australian homebuyers the lowest Three Year Fixed Rate Home Loan product in the market today by a considerable margin,” said Mr Murray.

Mr Murray also added, “For homebuyers seeking a highly competitive variable home loan, our decision to reduce our SVHL rate by 25 basis points ensures CUA remains at a significant, 50 basis point discount to the average of the major banks - a pricing distinction we have maintained for over two years. We believe this offer is both competitive pricing that benefits our customers and responsible business management in the current economic climate.”

CUA’s Three Year Fixed Rate Home Loan product details:
Term: Three years
Rate: 5.89%
Comparison Rate: 6.36%
Offer: Effective Wednesday 9 May 2012, until further notice
Benefits: No ongoing fees and up to three repayments in advance permitted
without penalty
Apply: Visit a CUA branch, call CUA Direct on 133 282, or visit
www.cua.com.au and use our Mobile Banker Locator to meet with a
CUA mobile lender.

CUA’s Standard Variable Rate Home Loan product details:
Rate: 6.47%
Comparison Rate: 6.53%
Offer: Effective Wednesday 9 May 2012, until further notice
Benefits: Fully flexible loan with unlimited redraw, 100% offset and no ongoing
fees.
Apply: Visit a CUA branch, call CUA Direct on 133 282, or visit
www.cua.com.au and use our Mobile Banker Locator to meet with a
CUA mobile lender.

*at 3 May 2012.