CUA drops Standard Variable Home Loan rate by 20 basis points

05/10/2012

CUA, Australia’s largest customer-owned financial institution, today announced it will cut its Standard Variable Home Loan (SVHL) rate by 20 basis points to a highly competitive rate of 6.05% - continuously remaining over 50 basis points cheaper than the average of the SVHL rates offered by the Big Four for over two years.

The rate cut follows the Reserve Bank of Australia’s decision this week to reduce the official cash rate to 3.25%, and makes CUA’s SVHL rate 66.8* basis points lower than the average of the Big Fours’ SVHL rates.

Today’s rate cut announcement also comes a week after CUA cut its Two and Three Year Fixed Rate Home Loan products by 23 basis points to 5.50%.

Jason Murray, CUA’s General Manager, Products and Marketing, said CUA is committed to offering customers the best deal we possibly can across our full range of home loan products.

“CUA’s SVHL rate cut of 20 basis points ensures we remain over 50 basis points cheaper than the average of the SVHL rates offered by the Big Four banks – a gap we’ve maintained continuously for over two years now,” Mr Murray said.

“Our customer-owned model enables us to focus entirely on our customers, not on shareholders, giving us more flexibility to make rate decisions that are in their interests.

“CUA reinvests our profits back into the business, with customers seeing the benefits in the form of competitive products, rates and fees.”

Mr Murray said CUA’s rate cut has been balanced against the long-term financial position of the business and the ongoing challenges of the economic environment.

“With the housing market at a 30 year low, we believe this offer contains both competitive pricing that benefits our customers and responsible business management in the current economic climate.”

CUA’s Standard Variable Rate Home Loan product details:

Rate:	6.05%
Comparison Rate:	6.11%
Offer:	Effective 12 October 2012, until further notice
Benefits:	No ongoing fees, extra payments at any time without penalty and 100% mortgage offset.
Apply:	For further information, customers can visit a CUA branch, call CUA Direct on 133 282, visit www.cua.com.au or use our Mobile Banker Locator to meet with a CUA mobile lender.

            

*NAB and CBA interest rates based on the 20 basis points reduction announcement as at 5 October 2012. ANZ and WBC current interest rate as at 5 October 2012.