A large mutual has launched a product tied to the major banks' rate moves.
CUA has announced its Rate Breaker Package loan, which will carry an ongoing discount of 1% to the average standard variable rate across the big four.
As the majors have yet to announce rate cuts following the RBA's move on Tuesday, the CUA product currently carries a 6.04% rate with a $350 annual fee.
CUA chief executive Chris Whitehead claimed the decision to peg the loan's rate to that of the major banks was "beating the banks at their own game".
"There is currently no other product available in the market that has the same pricing mechanism as the CUA Rate Breaker Package," Whitehead said.
Whitehead claimed that since April 2010, CUA's standard variable rate had been consistently at least 50bps less expensive than the average of the major banks' equivalent products.
"Our business model gives us the flexibility to make long term rate decisions that are in our customers’ best interests. Our profits are reinvested back into the business to deliver superior products, better interest rates and lower fees," he said.
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