This is a basic no-frills mortgage, which will appeal to both first time home buyers and those who want to refinance their existing home loan for a ‘fresh start’. The CUA Variable Loan moves with the market, so you’re not locked into the gambling against rate changes.
The Fresh Start Basic Variable Home Loan offers a competitive interest rate and the freedom to pay the way you want, offering monthly, fortnightly or weekly repayment options to suit your financial circumstances. Borrowers can choose between principal and interest or interest only repayments, though interest only payments must be monthly.
If you are keen to own your home faster and reduce interest costs, CUA doesn’t charge fees for making extra repayments. There is also a redraw facility, so you have access to any excess repayments if you need it. However customers should keep in mind there is no offset facility, but that may not make much difference to the cost of your loan if you don't have a huge amount of savings to offset your home loan principal.
Customers can borrow up to 80 per cent of the property value.
To be eligible for the Fresh Start Basic Variable Loan, you must already have or be willing to switch your everyday banking to CUA. This means having your salary deposited into an everyday bank account, having a linked debit card to this everyday bank account and being registered for online banking.
Who is the CUA Fresh Start Basic Variable Loan good for?
The low rate and low fees on the Fresh Start Basic Variable Home Loan may suit owner-occupiers, including first home buyers, and also investors who are on a tight budget. Despite the lack of an offset account, if you don't have too much cash sitting around, then this is no drawback at all. There are other ways you can reduce interest on your loan such as making free extra repayments as often as you can.
Review - What RateCity says
The CUA Fresh Start Basic Variable home Loan offers a competitive interest rate and it's largely fee free once you pay the upfront costs. You can make unlimited free extra repayments and redraw for free, so it has good basic features to offer. However, this would need to be weighed up against the costs involved in switching your everyday banking to CUA, which may involve other fees with your existing bank, so you'd need to check this. However, the switch could be worth it for those who are daunted by the sometimes high fees charged by other home lenders. While it is a basic package, it offers the features that you need to keep your interest costs down on your home loan.
CUA Fresh Start Basic Variable Loan Options
To find out if the CUA Basic Variable Loan is right for you, explore the options in the links below.
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