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CUA Fresh Start Variable Loan

Features

The CUA offers a range of Fresh Start Loans starting with their basic variable loan which offers competitive low rates and the ability to make extra repayments. This loan offers a redraw facility but doesn’t include an offset account.

Alternatively, CUA’s Fresh Start Variable Loan has slightly higher interest rates but includes an offset account and fewer upfront fees in return.

Importantly, both of these loan options require a minimum deposit of 20 per cent so anyone with a smaller deposit may want to consider CUA’s Fresh Start Access Variable which only requires a five per cent deposit.

Each of the Fresh Start Variable Loans allow you to make early repayments, free of any penalty fees, with the added benefit of being able to gain access to these funds through the free redraw facility.

The option of monthly, fortnightly or weekly repayments means you have a flexible schedule in which you can make your loan repayments to suit your budget and income schedule.

You can split any of the Fresh Start Variable Loan options with a fixed rate or choose the interest-only option, which could help you build equity in your property before making payments on your principal amount.

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 Variable Loan good for?

CUA’s Fresh Start Variable Loans have different features to suit a range of borrowers. If you have a larger deposit, the Fresh Start Variable and Fresh Start Basic Variable could be good options for you, while people with a smaller deposit will be better suited to the Fresh Start Access Variable loan.

For each of these options, owner-occupiers have the most benefit in the form of lower variable interest rates however there are benefits for investors as well, such as the interest-only option.

Review - What RateCity says

The Fresh Start Variable Loan options have different features that could suit you depending on what you’re looking for in a home loan.

The flexibility this loan offers gives you control over how and when you make your loan repayments with options to allow you to repay your loan faster.

CUA is a larger financial institution, with loans and various other banking products to suit where you feel that having all your eggs in one basket is important. So, if you want to move away from the big four banks, but still want the stability of a larger lender, CUA offers just that.

Just be sure that you factor in the upfront cost of this loan, especially if you’re an investor since you will be subject to a higher interest rate, though still moderate.

CUA Fresh Start Variable Loan Options

The Fresh Start Variable Loan options have different features that could suit you depending on what you’re looking for in a home loan.

The flexibility this loan offers gives you control over how and when you make your loan repayments with options to allow you to repay your loan faster.

CUA is a larger financial institution, with loans and various other banking products to suit where you feel that having all your eggs in one basket is important. So, if you want to move away from the big four banks, but still want the stability of a larger lender, CUA offers just that.

Just be sure that you factor in the upfront cost of this loan, especially if you’re an investor since you will be subject to a higher interest rate, though still moderate.

Variable Rates from

4.26%

Advertised rate

4.27%

Comparison rate
Pros
  • Low interest rate options available for owner-occupiers.
  • Early repayments and redraws allowed penalty-free.
  • Interest-only option.
Cons
  • Moderately high to high upfront costs for new CUA borrowers.
  • Must have a CUA everyday banking account for Fresh Start Basic.
  • No 100 per cent offset account for the basic variable option.
Eligibility

Must be an Australian resident.

Must be over 18 years of age.

Must already have a CUA everyday banking account or apply and be approved for one.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $195
  • Discharge fees: $200
  • Ongoing fees: $0

The basic option has a moderately high establishment fee in addition to the valuation and third party fees charged on all of the loan options.

There is also a discharge fee on the loan that will apply at the end of the term, but it is moderate, and all Fresh Start Variable borrowers can enjoy $0 in ongoing fees.

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

CUA stands for Credit Union Australia Limited and is Australia’s largest customer-owned financial institution, offering loans and varied banking solutions through online banking, a large ATM network across the country and the right to vote at the annual general meeting.

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