CUA Equity Line of Credit Loan

Features

The CUA Equity Line of Credit Loan allows borrowers with an existing property to draw on any equity via a linked credit card.

It’s an ongoing loan facility that gives the borrower instant access to the funds, up to an agreed limit.

Borrowers may use the funds as they see fit, such as to grow an investment portfolio or for day-to-day use.

Similar to a credit card, interest is charged on the loan balance, and the borrower can pay down the loan and later draw against the funds as they wish.

Like most of these types of loans, the CUA Equity Line of Credit Loan has a higher rate of interest than most traditional mortgages.

Borrowers can deposit their income directly into the line of credit account to reduce the amount of interest that will be paid. As interest will be calculated daily, borrowers can be sure that they are never paying more interest than they have agreed to in relation to what is in the account on any given day.

Borrowers will also be able to make extra repayments for no extra cost. 

Who is the CUA Equity Line of Credit Loan good for?

The Equity Line of Credit Loan may suit a borrower who is looking to draw on the equity in their existing property to use the funds for other purposes.

It might suit a borrower who doesn’t mind paying a higher rate of interest than they would on a traditional mortgage.

Review - What RateCity says

The CUA Equity Line of Credit Loan will give borrowers a range of flexible options for managing their finances. The combination of a line of credit and additional repayments with no ongoing fees makes for some strong opportunities in terms of refinancing and renovation.

Borrowers should note that line of credit loans require careful management to prevent them from blowing out the amount of interest paid in the course of a loan. On the other hand, equity lines of credit generally offer slightly lower rates of interest than credit card accounts. This loan might be a solid choice for borrowers looking for a reliable source of extra funds when required.

CUA Equity Line of Credit Loan Options

For further information about the CUA Equity Line of Credit Loan, please click the link below.

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More details

Variable Rates from

5.56%

Advertised rate

5.63%

Comparison rate
Pros
  • Instant access to funds up to an agreed limit.
  • Additional repayments available.
  • Minimal ongoing fees.
Cons
  • Upfront fees apply.
  • Discharge fee applies.
  • Higher rates of interest than a standard mortgage.
Eligibility

Must meet the lender’s serviceability requirements.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Line of Credit Loans
Fees
  • Estimated upfront fees: $835.00
  • Discharge fees: $500
  • Ongoing fees: $0

Borrowers signing up to the CUA Equity Line of Credit Loan will be required to pay an upfront fee.

While no annual or monthly fees are charged on this loan, a security administration fee and other fees may apply during the loan’s term.

A discharge fee will be payable on termination of the loan.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
About CUA

CUA, also known as Credit Union Australia serves over 400,000 customers across Australia, making it one of the country’s largest customer owned credit unions.

It is affiliated with the rediATM network, which is the largest ATM network in the country.

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