First Home Loan Deposit Scheme

Helping more first home buyers realise their dream sooner.

CUA is proud to be playing a leading role in helping more first home buyers step onto the property ladder, with our participation in the Australian Government’s First Home Loan Deposit Scheme.

From March 2020, we’ll be offering home loans through the scheme, which provides a guarantee for eligible first home buyers to purchase a home with a minimum 5 per cent deposit and without the additional cost of lenders’ mortgage insurance.

For those wanting to utilise the government guarantee, you’ll have access to our suite of competitively priced, fixed and variable rate home loans.

What’s the best home loan for me?

When choosing a home loan, think about your personal circumstances and finances. Do you need to know exactly what your repayments are so you can plan? Will you benefit from offsetting interest with money in your accounts? Do you want to make extra loan repayments and have access to them? Here are some things to consider when deciding.

Fixed interest rate loans

  • Give you more certainty and make it easier to budget because you know exactly what your repayments are for a set period of time.
  • Protect you against interest rate rises, but if interest rates fall you miss out on the savings.
  • Often have a higher rate than variable loans because you pay to ‘lock-in’ your rate.
  • If you decide to change your financial institution, sell your home, or pay off your loan within the fixed period, you may be charged an early payout fee.

Variable interest rate loans

  • Are subject to market conditions – if rates fall it’s likely your variable rate will fall too and your loan repayments will decrease. If rates rise, so might your repayments.
  • Usually give you more features and flexibility – like an offset account, the ability to make extra repayments and to pay off or move your loan without penalty or an early pay out fee (but they may have a discharge fee).

Offset accounts

  • Offset lets you use money in linked accounts to ‘offset’ your home loan. This means the balance in your accounts is offset daily against your loan, reducing the amount of interest you pay and your loan term. For example; if you have a loan of $500,000 and a balance of $10,000 in your offset account/s, you’ll only pay interest on $490,000 instead of $500,000.
  • Can have different features. 100% offset means you can deduct the full balance of your linked account/s from your loan.
  • Often have a minimum balance requirement that applies to your linked accounts.
  • No interest is earned on offset accounts.

Extra repayments

  • Allows you to pay more than the contracted or minimum loan repayment amount. If your monthly repayment is $2300 you may decide to pay $2500 instead.
  • Helps you to pay off the loan faster and reduces your interest payments.
  • You can also make lump-sum repayments, for example, if you receive a bonus or an inheritance.

Redraw

  • This feature provides access to the extra and additional repayments you’ve made on your loan.
  • You can take out (redraw) money from your ‘repayments in advance’ or ‘redraw balance’ whenever you need to, which can come in handy.

Comparison rate

  • When comparing loans, always look at the comparison rate. While one loan may have a lower interest rate than another, it may have fees and charges that actually make it more expensive.
  • It can help you compare the overall cost of each loan.
  • In Australia, comparison rates are always calculated on a standard loan amount of $150,000 and a loan term of 25 years with monthly repayments.
  • Although a useful guide, the comparison rate calculation doesn’t include benefits like offset accounts and the ability to make extra repayments and some fees may be excluded.


Important information Important information Show content

Results are based on a single, full time PAYG income with no dependants. Any upfront costs that may be associated with the loan are capitalised in the loan amount. The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for a loan. The actual amount you can borrow may vary depending on factors including your verifiable net income, other debts or liabilities you have and the number of dependents you have. Lending is to approved applicants only and all lending is subject to a detailed credit assessment.

Fees and charges are payable. The calculations do not take into account fees, charges or other amounts that may be charged to your loan (such as establishment or monthly service fees or stamp duty). If you are borrowing more than 80% of the value of the property, Lenders Mortgage Insurance may apply. Any of these additional amounts will increase repayments under the loan. .

Repayment is for principal and interest and is indicative only based on the stated information. Changes in interest rates, repayment frequency and loan term will affect the repayment amount.

Assumptions

Expense Details and Default Values
The calculator initially assumes that the borrower has a minimum set of annual expenses of $17,004.
Maximum percentage of income available - currently set at 100% of income

Month
All months are assumed to be equal. In reality, many loans accrue on a daily basis this can lead to varying interest in different months.

Number of Weeks & Fortnights in a Year
One year is assumed to contain exactly 52 weeks or 26 fortnights. Thus the assumption is for a 364 day year.

Rounding
The calculator uses the unrounded payment to derive the amount of interest accrued over the full term of the deposit, however, institutions round repayments to the nearest cent.


Important information Important information Show content

The calculations provided are estimates only and based upon the information entered into the calculator by the user. The calculations do not include upfront or continuing credit fees and charges. The resulting calculations do not constitute a loan application or variation to an existing CUA facility, loan offer or loan approval.

Rates current as at 17 Jan 2020 and subject to change.

Your needs and financial circumstances have not been taken into account. Terms, conditions and Lending critieria apply and are available on application. Other fees and charges may apply. A General Information , Terms & Conditions brochure and Schedule of Fees are available online or from your local CUA branch. You should read both these documents before deciding whether to purchase this product, issued by CUA.

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.

Which home loan suits me?

Which home loan suits me? Hide

$
Will this be your primary place of residence?
Do you want a fixed or variable rate?
Do you require an offset facility?
Do you require a redraw facility?

Your results

Max LVRΔ
Fixed/variable
Interest rate
Comparison rate*

Products

  • Achieve Variable ($100,000 - $249,999)– Principal & Interest 1,3

    3.20 % p.a. (Owner occupier)3.25 % p.a. (Comparison rate*)

    More info
  • Achieve Variable ($500,000 +) – Principal & Interest 3,8

    2.98 % p.a. (Owner occupier)3.03 % p.a. (Comparison rate*)

    More info
  • Achieve Variable ($250,000 - $499,999) – Principal & Interest 3,7

    3.05 % p.a. (Owner occupier)3.10 % p.a. (Comparison rate*)

    More info
  • Accelerate Variable – Principal & Interest 2

    3.39 % p.a. (Owner occupier)3.44 % p.a. (Comparison rate*)

    More info
  • Fixed Rate 2 Year – Principal & Interest #

    3.30 % p.a. (Owner occupier)4.49 % p.a. (Comparison rate*)

    More info
  • Fixed Rate 3 Year - Principal and Interest #

    2.98 % p.a. (Owner occupier)4.29 % p.a. (Comparison rate*)

    More info
  • Premium Fixed Rate 2 Year – Principal & Interest #

    3.50 % p.a. (Owner occupier)4.53 % p.a. (Comparison rate*)

    More info
  • Premium Fixed Rate 3 Year – Principal & Interest #

    3.50 % p.a. (Owner occupier)4.43 % p.a. (Comparison rate*)

    More info
  • Equity Line of Credit

    5.56 % p.a. (Owner occupier) % p.a. (Comparison rate*)

    More info
Offset account>< Free redraw available>| Flexible payments without penalty No monthly account keeping fees No establishment fees Interest only option Available for construction Split loan available Further advances Max LVRΔ
Owner Occupier
Up to $15,0005 Available Available Available Not Available Different rate/conditions apply Different rate/conditions apply Available Available 90 %
Up to $15,0003 Available Available Available Not Available Different rate/conditions apply Different rate/conditions apply Available Available 90 %
Up to $15,0003 Available Available Available Not Available Different rate/conditions apply Different rate/conditions apply Available Available 90 %
Available Available Available Available Not Available Different rate/conditions apply Different rate/conditions apply Available Available 95 %
Not Available Available Up to $5,000 extra repayments during fixed term>> Available Not Available For fixed term only Available Not Available 95 %
Not Available Available Up to $5,000 extra repayments during fixed term>> Available Not Available For fixed term only Available Not Available 95 %
Up to $50,000>|> Available Up to $50,000 extra repayments during fixed term>> Available Not Available For fixed term only Available Not Available 95 %
Up to $50,000>|> Available Up to $50,000 extra repayments during fixed term>> Available Not Available For fixed term only Available Not Available 95 %
Not Available Not Available Available Available Not Available Available Not Available Available 80 %

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Important information Important information Show content

Rates, including the rates by which loans are discounted, are current as at 17 Jan 2020 and subject to change.

Loans are issued by Credit Union Australia Ltd ABN 44 087 650 959 AFSL and Australian Credit License 238317 to approved applicants only. Lending criteria, terms, conditions, fees and charges apply. Ask us for details.

The "Choose your own CUA home loan" tool is an indication only. Results do not represent pre-qualification for a home loan.

* 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.

# On expiration of the fixed period, loan reverts to the relevant Standard Variable Principal & Interest repayment rate.

Δ Maximum Loan to Value Ratio (LVR) is inclusive of Lenders Mortgage Insurance (LMI) where applicable. Maximums based on standard security. Lower LVR limits apply for non-standard security types.

>< Offset is not available on all home loan products. You must maintain a minimum balance of $500 in each offset account to obtain the benefit of the offset from that account. Your offset account will not earn any interest.

>| A $200 minimum withdrawal amount applies for redraws conducted in-branch.

>> A daily transfer will refund any amounts paid in advance in excess of the total advance repayments allowed during the fixed rate period (being $50,000 for Premium Fixed and $5,000 for Fixed) unless sufficient to pay out the loan in full (in which case an Early Payout Fee may apply). Excess funds will be transferred to the nominated deposit account, which must remain open for the fixed rate period.

>|> For Premium Fixed Home Loans, any amount in excess of $50,000 in offset accounts will not be taken into account when calculating interest.

1 Achieve Variable is available to new to CUA home loans only. Minimum loan amount $100,000. Not available for switching or restructuring of existing CUA home loans or to applicants for another CUA home loan fully approved prior to 7/11/2018. Maximum LVR limits apply based on standard security types. Published interest rates and discounts available and applicable to home loans submitted on or after 7/11/2018. Interest rates and discounts may vary by loan purpose (owner occupied and investment) and by repayment type (principal and interest, interest only and construction loans). The discounts specified in your loan contract will not change for the life of the loan provided you do not vary your loan contract. If you vary your loan (for example, changing the loan purpose or repayment type), the rates and discounts may change..

2 Available to new loans of $100,000 or more. Maximum LVR limits apply based on standard security types. New loans only. Offers not available for switching of existing CUA home loans or to applicants for another CUA home loan fully approved prior to 04/07/2018 . Rates vary by repayment type (principal and interest vs interest only) and construction loans.

3 You must maintain a minimum balance of $500 in each offset account to obtain an offset benefit. The maximum in your offset accounts that is able to be offset against your Achieve Variable home loan when calculating interest is $15,000. Offset account balances in excess of $15,000 will not be taken into account when calculating interest on your loan. You will also not receive any interest on the funds in your offset accounts.

4 Security administration fee ($235) and other fees may apply.

7Achieve Variable is available to new to CUA home loans only. Minimum loan amount $250,000. Not available for switching or restructuring of existing CUA home loans or to applicants for another CUA home loan fully approved prior to 02/08/2019. Maximum LVR limits apply based on standard security types. Published interest rates and discounts available and applicable to home loans submitted on or after 02/08/2019. Interest rates and discounts may vary by loan purpose (owner occupied and investment) and by repayment type (principal and interest, interest only and construction loans). The discounts specified in your loan contract will not change for the life of the loan provided you do not vary your loan contract. If you vary your loan (for example, changing the loan purpose or repayment type), the rates and discounts may change.

8Achieve Variable is available to new to CUA home loans only. Minimum loan amount $500,000. Not available for switching or restructuring of existing CUA home loans or to applicants for another CUA home loan fully approved prior to 14/11/2019. Maximum LVR limits apply based on standard security types. Published interest rates and discounts available and applicable to home loans submitted on or after 14/11/2019. Interest rates and discounts may vary by loan purpose (owner occupied and investment) and by repayment type (principal and interest, interest only and construction loans). The discounts specified in your loan contract will not change for the life of the loan provided you do not vary your loan contract. If you vary your loan (for example, changing the loan purpose or repayment type), the rates and discounts may change.