CUA 1 Year Introductory Variable Rate Home Loan

Rates and Fees verified correct on December 4th, 2016

Ease into home-owner status with a introductory variable-rate home loan that offers lower interest for a full year.

With CUA's one-year introductory home loan, borrowers benefit from lower interest rates for a whole year before transitioning to either the Standard or Discount variable home loan.

The one-year introductory home loan offers an interest rate of for the first year. Borrowers who are new CUA clients and have a 20% deposit – or 80% loan-to-value ratio (LVR) – can also consider the Fresh Start Variable home loan.

  • This home loan was awarded the Gold Medal at the Mortgage of the Year Awards in 2012.

Things to consider about this home loan

Depending on the size of the loan, borrowers will be transferred to either the Standard or Discount variable home loan with no risk of losing the benefits and features of the introductory home loan. The lower interest rate no longer applies after the first year, but features like the redraw facility and offset account will still be available.

Although this introductory or 'honeymoon' loan is designed for first-time home buyers, it can also be used to refinance an existing loan or for construction purposes.

Features of the CUA 1 Year Introductory home loan

  • No penalties for lump-sum repayments. Borrowers can make lump-sum payments to pay off the loan quicker without the risk of penalty fees.
  • Roll over to variable home loan. At the end of the introductory period, loans are rolled over to either the Standard or Discount variable home loan.
  • Loan amounts. This introductory loan is available from a minimum amount of $10,000 up to a maximum of $5,000,000. Borrowers with $250,000 or less will be rolled over to the Standard Variable home loan.
  • Loan-to-value ratio (LVR). There is a maximum LVR of 95% for owner-occupier loans but borrowing above 80% LVR will incur lender's mortgage insurance (LMI). A 85% maximum LVR applies for all investor lending that is for new CUA customers without accompanying owner-occupied lending. A 95% maximum LVR applies for investors who are existing customers of CUA or CUA Health and new customers who bring both their investment and owner occupied home loans to CUA.
  • Construction. This loan can be used for construction and/or investment purposes.
  • No payout fees. If the loan is settled before the end of the loan period, the borrower is not liable for early payout fees.
  • Offset account. By linking an offset facility to a savings account, borrowers pay interest on the home-loan amount minus the balance in the linked account. This helps reduce the term of the loan while saving on interest.
  • Redraw facility. A free redraw facility allows borrowers to access additional or lump-sum payments. A minimum of 200 applies for redraws made a CUA branch office. There is no minimum for redraws made via CUA Online Banking.

Fees and charges

Fees you can avoid

  • Monthly fee. No monthly fee is charged for administering this home loan.
  • Early payout fees. Borrowers pay no payout fee if the loan is settled before the end of the loan period.
  • Copy fee: $22. If a loan document is duplicated, the borrower is charged this fee.
  • Variation fee: $300. This fee is charged if a client requests to switch between interest-rate types, loan products or make changes to the frequency of repayments.

Fees you can’t avoid

  • Application fee: $600. This fee is payable to cover the cost of processing the application and preparing all documentation related to the loan.
  • Security administration fee: $0. This applies to all mortgage loans and covers the various amounts charged to the client (agent settlement fee, credit reference fee etc.) during the settlement of the loan.
  • Third-party costs. Third-party costs like government and/or solicitors fees are unavoidable in the administration of the home loan. The bank is not responsible for changes made to fees charged by third parties. However, some exemptions may apply.

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How to apply for this home loan

Applicants must be Australian citizens or permanent residents, over 18 years of age and able to prove a regular income.

The following documents are required to determine how much clients can borrow and their ability to make repayments:

  • Identification in the form of a driver's licence, passport, MediCare card or birth certificate
  • Residential and email addresses, contact phone numbers
  • Last two pay slips and the last year's payment summary
  • Account statements and details about assets
  • Credit history
  • Contract of sale

Along with features like a 100% offset facility and no penalty for early payouts, borrowers benefit from lower interest rates on the one-year introductory home loan before being rolled over to CUA's Standard or Discount variable-rate home loan.

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This page was last modified on 29 March 2016 at 11:53.

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