Proving the competition around fixed rates is far from over, one of Australia’s largest credit unions has slashed the interest on its suite of products.
Yesterday, CUA cut the interest on its one-, two- and three-year fixed rate products.
From today onwards, the lender will offer a three-year fixed rate of 4.89 per cent – a 10 basis point reduction.
In addition, the lender trimmed 16 basis points from its two-year fixed rate and 21 basis points from its one-year rate.
According to CUA’s general manager products and marketing Jason Murray, the cuts reinforce the lender's commitment to providing competitive rates.
“The latest round of rate cuts across our one-, two- and three-year fixed rate home loans make CUA’s rates among the best in the market right now," he said.
“We are currently operating in a very low interest rate environment, making it an ideal time for customers to shop around for the best possible deal on their home loan
“CUA’s home loan rates are consistently lower than those offered by Australia’s big four banks. Because of our customer-owned model, we reinvest our profits back into the business to deliver customers consistently better value and lower rates.
“In contrast, while the big four have been identified as being the most profitable in the world, those profits are siphoned off as dividends to shareholders, rather than being directly delivered into the back pocket of their customers.”