CUA has today launched a new variable rate home loan product which offers home buyers a competitive rate, coupled with a range of features often only available on loans with higher interest rates.
Australia’s largest credit union CUA is offering the new Advance Variable Home Loan with a competitive interest rate of 3.74% p.a (comparison rate 3.75% p.a.) for eligible new to CUA owner-occupier loans paying principal and interest repayments. Higher rates will apply for owner-occupier interest-only loans and loans with a construction purpose.
Advance will give borrowers access to features including the flexibility to make unlimited additional repayments without penalty, free redraw of payments in advance, a mortgage offset feature (capped at $50,000) and no upfront loan establishment fee, annual or ongoing account keeping fees. Advance is available for borrowers taking out a loan of at least $100,000.
CUA head of product and marketing Susan Mason said that Advance is a good move for buyers looking to purchase a home to live in or for borrowers looking to bring their owneroccupier home loan to CUA for a better deal.
“We know that for many of our borrowers, having the flexibility of features like redraw and an offset account are important to managing their budget at different times in their life. But for many borrowers, they often compromise on these features in the hunt for a really competitive rate,” Mason said.
“Spring is traditionally a busy time for the market, with more properties for sale and more buyers shopping around. So this is the ideal time for CUA to launch a new product which combines good value and flexible features, complementing the other good value variable and fixed rate options we already have available for owner occupiers.”