CUA, Australia’s largest customer-owned financial institution, is taking on the Big Four banks head-to-head with today’s official launch of a new bundled home loan product.
Chris Whitehead, CUA's Chief Executive Officer, said the intention of CUA's Rate Breaker Package is to maintain an ongoing discount of one per cent to the average of the Big Four's rate.
“There is currently no other product available in the market that has the same pricing mechanism as the CUA Rate Breaker Package,” said Mr Whitehead.
“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.”
CUA’s Rate Breaker Package will be one per cent lower than the advertised average Standard Variable Home Loan rates of NAB, ANZ, Westpac and CBA. Today, the average rate is 7.04 per cent, therefore CUA’s Rate Breaker Package will offer a rate of 6.04 per cent per annum (Comparison Rate 6.36% per annum).
Unlike the Big Banks, CUA’s customer-owned business model allows CUA to put customers first, not shareholders, with profits reinvested back into the business.
“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 Rate Breaker Package, a bundled product, was officially launched in Sydney today and offers customers a suite of everyday banking products, including:
One percent lower than the advertised average of the Big Four banks’ standard variable rates
Competitive home loan rate; no establishment fees; fee-free transaction account (CUA Savings or Transaction account); no annual fee for CUA’s Platinum MasterCard, saving customers $179 per annum; 10% discount on CGU Home and Contents Insurance; discount ($500) on Statement of Advice provided by CUA Financial Planning
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.
Rate as at 6 June 2012
CUA Rate Breaker Package
||NAB Tailored Home Loan
||Standard Variable Rate Home Loan||7.01%
||ANZ Standard Variable Rate Home Loan||7.05%
||Westpac Rocket Repay Home Loan||7.09%
As at 6 June 2012
Mon - Fri 7:00am - 9:00pm (AEDT)
Sat - Sun 8:00am - 5:00pm (AEDT)