Credit union cuts fixed rates

by Julia Corderoy16 Jun 2016
Major credit union CUA has cut fixed rates across its owner occupier and investment home loan products.

The credit union has cut fixed interest rates for owner occupiers by up to 43 basis points and up to 33 basis points for investors. The new fixed rates are available for home loan applications fully approved from today.

These changes will see CUA offer interest rates below 4% for owner occupiers across its one-year (3.94% p.a.), two-year (3.96% p.a.) and three-year (3.99% p.a.) fixed rate home loans. 

Fixed rates for investors will start from 4.34% for the one-year fixed rate loan. The two-year fixed rate for investors will fall to 4.36%, while the three-year fixed rate will be reduced to 4.39%.

“There are a lot of people shopping around for loans at the moment and the market is seeing an increasing number of borrowers considering fixed rate options,” CUA’s general manager of products and marketing, Jason Murray said.

 “These reductions in fixed interest rates will be welcome news for first homebuyers looking to get into the property market.”

Murray added that the reduction in investor interest rates also came on the back of recent changes CUA made to wind back some restrictions on investor lending by lifting maximum LVRs.