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CUA Fixed Rate Loan

Features

The most attractive feature of the CUA Fixed Rate Loan is the availability of a very-low fixed rate for owner-occupiers, with rates ranging up to moderate depending on the fixed period.

A moderate fixed rate is the lowest that investors can take advantage of on this loan, with the rest of the fixed term rates ranging up to moderately high.

This loan can be split between a fixed rate and a variable rate and customers also have the benefit of a flexible repayment schedule with the choice to make monthly, fortnightly or weekly principal and interest repayments, with interest-only payable on a monthly schedule.

Additional repayments are limited to $5000, so the largest benefit you can make towards paying your loan off sooner will be when your loan reverts to the variable term.

However, you will have the benefit of redrawing any amount of your extra repayments through the available online redraw facility, though there is a minimum amount that must be redrawn when you redraw in-branch.

The CUA Fixed Rate Loan offers borrowing up to a maximum of 95 per cent of a property’s value, though lenders mortgage insurance may be payable for any loan without a deposit greater than 20 per cent, which is standard.

Note: New to CUA investor loan applications are now only considered when accompanied by CUA owner-occupier lending. Restrictions and assessment criteria applies.

Who is the CUA Fixed Rate Loan good for?

The CUA Fixed Rate Loan is offered to both investors and owner-occupiers.

Owner-occupiers will have access to lower fixed rates than investors, which is increasingly common among lenders.

This may also be a suitable loan option for first time home buyers since it requires a small deposit, and can benefit owner-occupiers as interest-only repayments are allowed for a short period.

Review - What RateCity says

With low fixed rates, no ongoing fees and the ability to borrow up to 95 per cent of a property’s value, this may seem like a good option for first-time home buyers. However, the moderately high upfront fee and discharge fee, combined with paying lender’s insurance for making less than a 20 per cent deposit, could turn out to be a pricier endeavour for the life of the loan than other loan products offered on the market.

While there are benefits for investors, such as being able to make interest-only repayments as well as additional repayments with access to the redraw facility, the fixed rates available to investors range from moderate to moderately high, and there are no long-term fixed period available.

CUA Fixed Rate Loan Options

The CUA Fixed Rate Loan is offered at different fixed terms, with more information about each available at the links provided below.

Product
Advertised rate
Comparison rate*
Monthly repayment
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Fixed Rates from

3.79%

Advertised rate

4.61%

Comparison rate
Pros
  • Very low fixed rates available to owner-occupiers.
  • No ongoing fees charged.
  • Split loan option available.
Cons
  • Additional repayments limited to set amount.
  • Moderate to moderately-high fixed rates for investors.
  • Moderately-high establishment fee.
Eligibility

Must be a permanent resident of Australia.

Must be over 18 years of age.

Must meet the lender’s serviceability requirements.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $795
  • Discharge fees: $200
  • Ongoing fees: $0

While you can enjoy $0 in ongoing fees on the CUA Fixed Rate Loan, you can expect a moderately high establishment fee when you set this loan up as well as an average discharge fee charged at the end of your loan term.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About CUA

CUA is a customer-owned Australian credit union and is the largest customer-owned institution in the country, with its profits reinvested to customers.

Complete banking services, including internet, telephone and branch banking, are available throughout Australia.

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