CUA undercuts major banks with fixed rate cut

Credit Union Australia (CUA), the nation’s biggest customer-owned lender, has cut its three-year fixed-rate home loan rate by five basis points to 6.34%, bringing it under the four major banks. 

The CUA’s three-year fixed-rate home loan is now 31basis points lower than the average of the Big Four’s equivalent three-year fixed-rate home loan products. 

It was recently voted a top three favourite home in the Mozo People’s Choice Awards 2011. 

“Given the current uncertainty in the market, Australians looking for stability and security around their mortgage repayments may find fixing their loan for a longer-term period of three years a good option,” says Andrew Hadley, CUA’s group GM for strategy and marketing.

Comparing fixed-rate home loans

3 Year Fixed Rate 

Comparison Rate 

CUA

6.34%

7.02%

ANZ

6.59%

7.52%

Westpac

6.64%*

7.63%*

NAB

6.64%

7.49%

CBA

6.74%

7.62%

Source: CUA, correct as of September 29, 2011
*Non-packaged rate

Westpac, St George and The Greater Union Society also cut their fixed rates this week.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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