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CUA reduces Fresh Start Variable Home Loan rate by 0.25% p.a.

 
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CUA will reduce the interest rate on its popular Fresh Start Variable Home Loan by 0.25% p.a., following the Reserve Bank decision to reduce the official cash rate to a new record low.

CUA will reduce the interest rate on its popular Fresh Start Variable Home Loan by 0.25% p.a., following the Reserve Bank decision to reduce the official cash rate to a new record low.

CUA, Australia's largest customer owned financial institution, confirmed today that it would reduce interest rates across all of its variable rate home loans, after the Reserve Bank this week reduced the official cash rate to 2% p.a.

The CUA Fresh Start Variable Home Loan interest rate – which is CUA's lowest variable rate - will be reduced by 0.25% p.a. to 4.18% p.a., effective 14 May 2015. The Fresh Start Variable Rate Home Loan has helped CUA achieve record lending since the loan was launched less than a year ago. Fresh Start was recognised last week with a CANSTAR Award, receiving 5 stars for outstanding value.

CUA will also reduce rates by 0.22% p.a. across its standard variable, basic variable and discount variable rate home loans. The interest rate for CUA's Standard Variable Home Loan will move from 5.15% p.a. to 4.93% p.a.

CUA's Rate Breaker Package Home Loan will decrease by 0.22% p.a. to a new rate of 4.43% p.a. and remains 1% lower than the average of the advertised standard variable rates of the Big 4 banks. The new Rate Breaker interest rate will be effective from 15 May 2015. 

General Manager of Products and Marketing, Jason Murray, said CUA was committed to passing on savings to customers.

"As a customer-owned institution, our focus is always on finding ways to provide better value banking for our customers, so they can have a home and a life," Mr Murray said.

"We are in a very competitive lending market at the moment with record low interest rates. We're pleased to be able to pass on these lower variable interest rates, giving home loan customers a little bit of extra breathing space."

The variable interest rate changes follow CUA's decision to reduce interest rates across all of its fixed rate home loans in April - the second time this year that CUA has reduced fixed rates. CUA's 1-year fixed rate has fallen 0.60% p.a. since the start of 2015 to 4.29% p.a., while the 3-year fixed home loan has CUA's lowest fixed rate at 4.25% p.a.

 

 

Variable Home Loans:

 

 

Variable Rate Products

Change
(p.a.)

New Rate (p.a.)

Comparison Rate (p.a.)1

Effective date

Standard Variable Rate

- 0.22%

4.93%

4.99%

14 May 2015

Discount Variable > $250,000

- 0.22%

4.93%

4.84%

14 May 2015

Basic Variable

- 0.22%

4.85%

4.91%

14 May 2015

Basic Variable > $250,000

- 0.22%

4.75%

4.81%

14 May 2015

1 Year Introductory Variable

- 0.22%

4.55%

4.95%

14 May 2015

Fresh Start Variable

- 0.25%

4.18%

4.20%

14 May 2015

Equity Line of Credit

- 0.22%

5.43%

n/a

14 May 2015

CUA Rate Breaker Package

-0.22%

4.43%

4.78%

15 May 2015


1 
Comparison rate calculated on a loan of $150,000 over 25 years based on monthly repayments. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Feb 26, 2019 | Found in: homeloan,
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