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Changes to CUA variable rate owner-occupied & investor loans

 
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CUA is making changes to our variable interest rates for some owner-occupied and investor home loans.1

Interest rates will increase by 0.25% p.a. across a number of CUA’s variable rate home loans for borrowers paying Principal & Interest, as well as those making Interest Only payments. The new interest rates are effective Tuesday 21 August 2018.

“CUA recognises the impact that this change will have for our members and we do not make these decisions lightly,” Chief Sales Officer Paul Lewis said.

“CUA, like other lenders in Australia, has been impacted by rising funding costs in recent months. CUA has absorbed these costs to date and we’ve  delayed passing these costs on to borrowers. But over recent months, we’ve seen many other lenders have already reviewed interest rates in light of these higher funding costs.

“Unfortunately, we expect funding costs to remain elevated in the coming year. This has meant we've needed to review interest rates to offset these higher funding costs.”

Mr Lewis noted that as a member-owned organisation, CUA has a responsibility to all members to ensure the business can generate sustainable returns to keep investing in the member experience improvements and digital offerings that consumers expect from their banking provider.

“Some of these improvements have already been delivered to our members – things like faster payments via the New Payments Platform; Apple Pay, Samsung Pay and Google Pay mobile wallets; upgrades to our CUA mobile banking app and an increased investment in community grants and local initiatives,” he said.

“Other improvements are coming soon, including our chat-style messaging app iM CUA, which is currently being trialled by 2,000 CUA members before a wider rollout to all members across both iPhone and Android devices.”

CUA continues to offer members competitive fixed and variable rate options and Mr Lewis assured members that CUA is here to help and support them. CUA also offers a range of competitively priced Fixed Rate home loans for members considering fixing their rate.

CUA members affected by the changes will shortly receive a letter confirming the new interest rate for their loan and the revised minimum repayment amount.

For most members making Principal and Interest (P&I) repayments, the new minimum P&I repayment amount will apply from the next repayment due on or after 25 September 2018. For members with Interest Only repayments (including Construction loans during the Interest Only period), the new minimum Interest Only repayment amount2 will apply from their next repayment due on or after 1 September 2018.

Any members who have concerns about these rate changes can contact CUA to discuss their loan – members can either visit their nearest CUA branch or ring 1300 367 328.

CUA Owner Occupier Home Loans – rate changes, effective Tuesday 21 August 2018

Product
Repayment type
Current rate (p.a.)
Change (p.a.)
New rate (p.a.)
New comparison rate (p.a.)3
Fresh Start Basic Variable
Fresh Start Basic Variable
Principal & Interest
4.07%
+0.25%
4.32%
4.33%
Construction
4.07%
+0.25%
4.32%
4.33%
Interest Only2
4.42%
+0.25%
4.67%
4.40%
Fresh Start Variable
Fresh Start Variable
Principal & Interest
4.26%
+0.25%
4.51%
4.52%
Construction
4.26%
+0.25%
4.51%
4.52%
Interest Only2
4.61%
+0.25%
4.86%
4.59%
Advance Variable
Advance Variable4
Principal & Interest
3.65%
+0.25%
3.90%
N/A
Construction
3.99%
+0.25%
4.24%
N/A
Interest Only2
4.24%
+0.25%
4.49%
N/A
Kick Start 2 year Intro Variable4
Kick Start 2 year Intro Variable4
Principal & Interest
3.87%
+0.25%
4.12%
N/A
Construction
3.87%
+0.25%
4.12%
N/A
Interest Only2
4.22%
+0.25%
4.47%
N/A
Standard Variable4
Standard Variable4
4.99%
+0.25%
5.24%
N/A
Discount Variable4 (inclusive of 0.20%p.a. loyalty discount)
Discount Variable4 (inclusive of 0.20%p.a. loyalty discount)
4.79%
+0.25%
5.04%
N/A
Basic Variable4
Basic Variable4
4.83%
+0.25%
5.08%
N/A
Basic Variable >$250k4
Basic Variable >$250k4
4.83%
+0.25%
5.08%
N/A
Fresh Start Access Variable4
Fresh Start Access Variable4
4.46%
+0.25%
4.71%
N/A
Platinum Variable4 (inclusive of 1.00%p.a. OO discount)
Platinum Variable4 (inclusive of 1.00%p.a. OO discount)
3.99%
+0.25%
4.24%
N/A

CUA Investor Home Loans – rate changes, effective Tuesday 21 August 2018

Product
Repayment type
Current rate (p.a.)
Change (p.a.)
New rate (p.a.)
New Comparison rate (p.a.)3
Fresh Start Basic Variable
Fresh Start Basic Variable
Principal & Interest
4.83%
+0.25%
5.08%
5.13%
Construction
4.83%
+0.25%
5.08%
5.13%
Interest Only2
5.18%
+0.25%
5.43%
5.28%
Fresh Start Variable
Fresh Start Variable
Principal & Interest
4.91%
+0.25%
5.16%
5.17%
Construction
4.91%
+0.25%
5.16%
5.17%
Interest Only2
5.26%
+0.25%
5.51%
5.32%
Kick Start 2 year Intro Variable4
Kick Start 2 year Intro Variable4
Principal & Interest
4.15%
+0.25%
4.40%
N/A
Construction
4.15%
+0.25%
4.40%
N/A
Interest Only2
4.50%
+0.25%
4.75%
N/A
Standard Variable4
Standard Variable4
5.54%
+0.25%
5.79%
N/A
Discount Variable4 (inclusive of 0.20%p.a. loyalty discount)
Discount Variable4 (inclusive of 0.20%p.a. loyalty discount)
5.34%
+0.25%
5.59%
N/A
Basic Variable4
Basic Variable4
5.31%
+0.25%
5.56%
N/A
Basic Variable >$250k4
Basic Variable >$250k4
5.31%
+0.25%
5.56%
N/A
Fresh Start Access Variable4
Fresh Start Access Variable4
4.96%
+0.25%
5.21%
N/A
Platinum Variable4 (inclusive of 1.00%p.a. OO discount)
Platinum Variable4 (inclusive of 1.00%p.a. OO discount)
4.49%
+0.25%
4.74%
N/A



Important Information:

1. Home loans issued by Credit Union Australia Ltd ABN 44 087 650 959, Australian credit licence 238317 to approved applicants only. Lending criteria, fees, charges, terms & conditions apply. Ask us for details.

2. For members with Interest Only lending, the minimum Interest Only repayment amount is the estimated monthly repayment based on the total loan amount outstanding and a 31-day month. However, the actual monthly repayment amount will be the amount of interest accrued each day for that specific month.

3. Comparison rate calculated on a $150,000 secured loan over a term of 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.

4. No comparison rate as these products are closed to new lending and switching. These products remain open to existing product-holders only.

Feb 26, 2019 | Found in: news, mediarelease,
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