Supporting members impacted by COVID-19

As a member-owned organisation, we’ve a proud history of standing by our members. It’s what we’ve done for more than 70 years and will continue to do as we face this current challenge together. In these uncertain times, one thing’s for certain, we’re here to support you – our members.

Banking from home and Branches

Banking from home and Branches Hide

Banking from home

To help you to continue to bank safely and securely with us, we offer a range of easy-to-use digital banking services. These include CUA Mobile and Online Banking, as well as our iM CUA messaging app - allowing you to message a CUA Personal Banker from anywhere, when it suits you. We’ve created some simple, step-by-step ‘How to’ guides to help you bank safely and securely from home.

Branches

Banking is an essential service and CUA has robust plans in place to continue delivering safe, flexible banking and insurance services for our members.

We are doing everything we can to keep our branches open during this challenging time. The majority of our branches are currently open for business as usual.

Note that all CUA branches are currently closed on Saturdays.

Our team members are following the social distancing practices and self-isolation protocols recommended by the government. We’re asking our members to also do the right thing. Do not come into a branch if you are required to self-isolate for any reason, or if you are feeling unwell with flu-like symptoms.

While our branches are open, CUA encourages members to practice social distancing and wherever possible, use our digital and mobile banking channels to manage your banking from home.

Cash transactions

For cash transactions, find your nearest branch or use these services (fees and charges may apply)

  • Make cash withdrawals at thousands of free ATMs across Australia, including ATMs operated by the four major banks. (Commonwealth Bank, ANZ, Westpac, NAB)
  • Withdraw or deposit cash or deposit, at any Australia Post office displaying the Bank@Post logo. Please check the Australia Post website to keep up to date with any Post Office closures.

Financial Assistance

We are providing a Financial Assistance Package to help those impacted by the COVID-19 situation. It will help provide immediate relief to impacted members.

Support for members with home loans

At a time of considerable uncertainty across Australia, we acknowledge that this is a hard time for many of our members and we want you to know that there are many options available to support you.

1. Insurance

You may have insurance cover for events of illness or involuntary unemployment. This could be through an income protection policy, a policy linked to your superannuation, or you may have purchased loan repayment insurance.

If you purchased loan repayment insurance with your CUA loan, contact the Credicorp claims team on (07) 3552 4289 to see whether you’re eligible to make a claim.

2. Redrawing extra home loan repayments you’ve made

Over half of CUA members are currently ahead of their scheduled home loan repayments. If you are one of these members, then you could consider redrawing those extra repayments fee-free to support you during this time.

Unlike much of the industry we allow redraw from our fixed rate loans. Redraw is available either online via internet banking or via a branch (should you prefer to visit one). Refer to our online guide for further information.

If you have available funds this may be a better option for you than pausing your repayments.

3. Reducing your home loan repayments to the minimum amount

Over half of CUA members pay more than the minimum amount required each month. You may have set an amount at the start of your contract that has remained unchanged even after numerous rate cuts this year. You can reduce this to the minimum repayment amount, freeing up extra cashflow. You can find out what your minimum repayment amount is on Online and Mobile Banking.

4. Reduction to fixed home loan rates

2.29% p.a. for our 2 year and 3 year fixed home loan rates (comparison rates* of 4.11% p.a. and 3.94% p.a. respectively) for owner-occupiers making principal and interest repayments. These rates are available for our existing members only.

Any members wishing to terminate an existing fixed rate contract early will be subject to applicable early payout fees and charges.

5. Switching to Interest Only repayments

We’re offering the flexibility to shift from Principal and Interest payments to Interest Only for members for a period of 12 months.

Note an increase of interest rate may apply as the rates for Interest Only could be higher than Principal and Interest Rates. Our current interest rates for Interest Only products are available here.

We will be waiving the $300 variation fee to switch to Interest Only repayments.

Please note any members wishing to terminate an existing fixed rate contract early will be subject to applicable early payout fees and charges. If you have a Fixed Rate loan and would like to discuss Financial Assistance options please call us on 133 282.

6. Financial Assistance Package

You can apply to defer your home loan repayments for up to four months if you are experiencing financial difficulty as a result of COVID-19. This means you won’t need to make any repayments for up to four months. However, during this time, interest will continue to be added to your loan balance and your loan balance will progressively increase. You can still access and redraw any additional funds or additional payments you’ve made while your repayments are on pause.

You should be aware that all else being equal, the total amount of interest you will pay for the life of the loan, will increase slightly overall.

To help keep your repayments (when the assistance period finishes) as similar as possible to what you’re currently paying, we can also support you with an extension to your loan term, please let us know if you’d like to take this option. Please note that extending the loan term will also potentially further increase the total amount of interest over the life of the loan.

Support for members with personal loans

At a time of considerable uncertainty across Australia, we acknowledge that this is a hard time for many of our members and we want you to know that there are many options available to support you.

1. Insurance

You may have insurance cover for events of illness or involuntary unemployment. This could be through an income protection policy, a policy linked to your superannuation, or you may have purchased loan repayment insurance.

If you purchased loan repayment insurance with your CUA loan, contact the Credicorp claims team on (07) 3552 4289 to see whether you’re eligible to make a claim.

2. Redrawing extra personal loan repayments you have made

Many CUA members are currently ahead of their scheduled personal loan repayments. If you are one of these members, then you could consider redrawing those extra repayments fee-free to support you during this time provided you are on a product that supports redraw.

If you took out a personal loan after July 2017, you’d be able to redraw using online banking. If you are on a product without redraw feature, please specify in the comment section of the form below. Unlike much of the industry we allow redraw from our fixed rate personal loans.

3. Fees

We will waive late fees for personal loan repayments.

4. Repayments

Other assistance options (including repayment relief) may also be available for members on request and will be reviewed on a case by case basis.

Support for members with credit cards

We will waive late fees on credit card repayments.

Other assistance options (including repayment relief) may also be available for members on request and will be reviewed on a case by case basis.

Support for small business

Repayment relief for small business members: You can apply to defer your business loan repayments for up to four months if you are experiencing financial difficulty as a result of COVID-19. We can also extend your loan term by the same length of time to ease the pressure and minimise the increase to your repayments when you start to make them again.

We’re reducing secured overdraft rates by 2.00% p.a for small business members.

We’re reducing variable rates on term loans for existing small business members from Wednesday 8 April 2020:

  • We’re reducing the rate for term loans with residential security to a new variable rate of 4.39% p.a.
  • We’re reducing the rate for term loans with commercial security to a new variable rate of 4.89% p.a.

Support for members with CUA Health insurance

CUA Health policy-holders experiencing financial difficulty or a loss of income as a result of COVID-19 can suspend your policy and premium payments for three months by phoning CUA Health on 1300 499 260. If you require hospital treatment during the period of the suspension, you should contact CUA Health and we will work with you to reactivate your policy.

For the duration of the COVID-19 pandemic, CUA Health will cover members for all in-hospital COVID-19 treatment irrespective of their level of hospital cover, provided they have held the CUA Health Policy for at least two months.

Delayed CUA Health premiums and cover for telehealth services

CUA Health has delayed its 1 April premium changes and will cover a range of telehealth services for six months, as part of a broader package of financial relief measures for members in response to the COVID-19 pandemic.

Members do not need to do anything to take advantage of the delay to premium increases – CUA Health will make the necessary updates to ensure premiums remain unchanged on 1 April.

For members with extras cover, CUA Health will pay benefits for consultations provided by phone or video across a range of allied health practitioners. CUA Health will allow members to claim on telehealth consultations for psychology, as well as six additional telehealth services, until 30 September 2020.

Travel insurance

If you have questions about a travel insurance policy you purchased through CUA, please contact our travel insurance provider, Allianz Global Assistance.

We understand Allianz Global Assistance is currently experiencing an increased volume of calls and waiting times may be higher than usual. For claims, we encourage you to claim online at www.travelclaims.com.au and appreciate your patience.

For other inquiries relating to travel insurance:
General & Claims Enquiries
Phone: 1800 010 262
Email: cua@allianz-assistance.com.au

Online claim lodgement: www.travelclaims.com.au
24-hour Emergency Claims Assistance
+61 7 3305 7499 (reverse charge from overseas)
1800 010 075 (within Australia)

Important information Important information

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

CUA Health Insurance is provided by CUA Health Ltd ABN 98 098 685 459 (CHL) which is not an authorised deposit-taking institution. While CUA Health Insurance may be distributed by Credit Union Australia Ltd ABN 44 087 650 959, AFSL 238317 (CUA), CUA is not liable for this product and does not stand behind CHL.

What you need to know about your Financial Assistance Package

If you’re currently receiving a CUA Financial Assistance Package, and it’s due to expire in the coming weeks, we’ll be in touch shortly to assist you moving forward. We will be contacting members via email, or you may receive a call from a CUA team member.

At CUA, we understand that financial stress can be overwhelming. That’s why we’re here to support you every step of the way. Below, you’ll find further information to help you understand the Financial Assistance Package, and some other options to explore.

How long does this Financial Assistance Package go for?

  • This varies depending on your circumstances and the product(s) you have with us. Home Loan packages have been provided for up to six months, Credit Card and Personal Loans for up to three months at a time.

What do I do if my package is about to expire?

  • We will have communicated to you by letter the date your repayments resume and the revised repayment amount.
  • It’s worth making sure you have your periodical payment set up again ahead of time.
  • Also, don’t forget to double check your repayment amount as it might have changed.
  • If you want to confirm your repayment amount and recommencement date, you can refer to your statement in online banking. Alternatively, please call us on 133 282.

What are my options for further support?

Restarting your loan repayments as soon as possible, even if only reduced repayments, will help you save on interest in the long term. If you’re unable to recommence your repayments, please call us to discuss further support options.

  • Extension of repayment deferral

    You can apply for an extension to your repayment deferral. We will review your extension application and work with you to agree on the best way forward. It’s important to understand that during a period of deferred repayments, sometimes referred to as a “repayment holiday” you will not be required to make any repayments during those months, however, interest will still be incurred on your loan and will be added to the outstanding loan amount. When your repayments resume they will be higher to ensure you are able to repay the loan balance over the remaining term of your loan.

  • Making reduced or partial repayments

    If you’re able to, it’s a good idea to make regular repayments to your loan, no matter how small, as it will help reduce your total debt. At the end of the reduced repayment period, your loan balance will be higher than if you had made your contracted minimum monthly repayments, therefore your new minimum repayment amount will increase to ensure you are able to repay the loan balance over the remaining term of your loan.

  • Interest Only repayments

    When switching from Principal and Interest to Interest Only your interest rate may increase. This is because interest rates for interest only products are generally higher than principal & interest products. Interest rates are available on our rates page. Switching to Interest Only repayments may result in an increase in your repayment amount at the end of the Interest Only term and will result in an overall increase in interest payable over the term of your loan.

Here are some examples

Meet Natasha

  • Natasha has a personal loan of $30,000. She has a remaining loan term of 5 years and interest rate of 10.00%. Her monthly repayments are $637.41 per month. Natasha works in hospitality and her income has been reduced as a result of COVID-19. She applies for a repayment pause of 3 months. To repay the higher loan balance back within her original loan term of 5 years, her repayments have now increased to $680.05 per month. Natasha will pay an additional $517.92 in interest over the life of her loan due to the repayment pause.

Meet James

  • James has a Home loan amount of $300,000 with a term of 25 years an interest rate of 4.00% and monthly payments of $1,583.51. As a result of Coronavirus, James has lost his job and submits a Financial Assistance application to defer his Home Loan repayments for 6 months. As a result of the 6 month deferral, the loan balance will increase as interest is still being incurred and added to the loan. At the end of the repayment deferral, James’ repayments will increase to $1,634.68 to ensure the loan balance is repaid within the 25 year term. Additional interest of $5,543.53 will be payable as a result of the repayment deferral.
  • Applying for a 6 month extension to the loan term (therefore increasing the loan term to 25 years and 6 months) will help to reduce the impact of the increased repayment. By doing this, James’ new monthly repayments will be $1,615.45. The additional interest, however, is much higher at $9,580.59. By increasing the repayment amounts above the minimum monthly amount, James can reduce the amount of interest payable over the term of his Home Loan.

What does this Financial Assistance Package do to my credit report?

  • The Repayment History Indicator is a month by month report showing whether you’ve made your payments on time. If your account is not already overdue when this application is processed, your Repayment History Indicator will continue to report your account is up to date. If however your account is already in arrears. CUA will continue to report the outcome.

What does this Financial Assistance Package do to my repayments?

  • Your minimum repayment amount after the repayment deferral ends will be different to before you applied. This is because during a repayment deferral, interest continues to be added to your loan balance and therefore your loan balance will progressively increase. Your repayments are then recalculated on the loan balance at the end of the deferral period to ensure you still repay your loan over the approved term (unless you have also been approved for an extension in your loan term). Your new repayments will have been communicated to you in a letter. It’s worth making sure you have your periodical payment set up for the new payments ahead of your scheduled recommencement of repayments date. If you need information on your new repayment or the recommencement date, please call 133 282.

What other resources can I draw on to help me bounce back?

  • In some cases, your product may include insurance. And it might be possible to make a claim under that policy. So, be sure to check.
  • It might be that you went into the COVID-19 phase ahead on your loan repayments. If so, you might want to redraw those funds to make your minimum repayments.

What other COVID-19 support is out there?

Other things to think about

Insurance

  • You may have insurance cover for events of illness or involuntary unemployment. This could be through an income protection policy, a policy linked to your superannuation, or you may have purchased loan repayment insurance.
  • If you purchased loan repayment insurance with your CUA Loan, contact the Credicorp claims team on (07) 3552 4289 to see whether you’re eligible to make a claim.