CUA cuts three-year fixed rate to 5.1% and sticks boot into big banks

Australia’s largest customer-owned lender, CUA, has cut its three-year fixed rate from 5.25% to 5.1%, effective from Friday (March 22).

The move follows Westpac lifting its two-year fixed-rate from 4.99% to 5.29% today and expectations from mortgage broker Loan Market and Channel Nine's Ross Greenwood that fixed-rates would start rising again.

In his money minute segment today on Channel Nine Today Greenwood said the Westpac move was indicative of the banks changing their views on loan rates.

CUA general marketing manager Jason Murray highlighted that the move was "contrary to one of the nation’s largest banks".

Murray says the CUA’s three-year fixed rate is significantly lower than the equivalent standard rates offered by the Big Four banks, now by thirty four basis points (0.34%).

"On an average loan size of $300,000 with a 30 year term, a three-year fixed rate home loan from CUA at 5.10% could save homebuyers $63 per month, or $2,2681 over the three year duration of the loan, compared to the average rate of the big four banks on their equivalent products.

 “While one of Australia’s largest banks has moved to increase their fixed rates, CUA has chosen to make further cuts to its entire suite of fixed rate products. We are determined to offer customers the best deal we possibly can and these cuts further demonstrates that. 

“CUA aims to provide Australians with an innovative alternative based on value and service to the major banks and we are constantly looking at ways to reinforce this to our customers,” he says.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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