CUA Discount Variable Rate Home Loan

Rates and Fees verified correct on October 25th, 2016

Be rewarded with a 0.20% discount on your repayments with this loan

The Discount Variable option rewards you for your loyalty. For the first three years, the interest rate is and comes with a range of loan features like a free redraw facility and a full offset account. After the third year, the rate is cut to for the rest of the loan period.

Things to consider about the CUA Discount Variable Home Loan

No penalties are charged for settling before the end of the loan period. This allows even minimum amount borrowers to be flexible in their choices of repayment, in terms of frequency and the amount. Those who are borrowing for investment purposes can choose to make interest-only repayments.

Features of the Discount Variable home loan

  • Loan amount. This loan is available from a minimum of $250,000 and up to a maximum of $5,000,000.
  • Maximum LVR. A maximum loan-to-value ratio (LVR) of 80% applies to all owner-occupier loans unless you wish to pay 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. This higher LVR also applies to owner-occupier loans that are willing to pay LMI.
  • Free redraw facility. Borrowers can access a free redraw facility online, by telephone or by visiting a CUA branch. No minimum applies for online redraws, while telephone and in-person redraws are granted for a minimum of $200.
  • Additional and lump-sum repayments. Borrowers can make additional and lump-sum repayments without the risk of charges for shaving time off the loan period.
  • Flexible repayments. This loan allows for weekly, fortnightly and monthly repayments. This allows you to have your repayments coincide with your salary.
  • Payout fees. No early payout fees are charged when the loan is repaid before end of the loan period.
  • Offset facility. Linking a CUA savings account to the home loan helps reduce interest by offsetting the balance against the loan amount. Borrowers only pay interest on the loan amount minus the funds accumulated in the savings account. This can help you pay off your loan faster and save you in interest.
  • Construction. This loan is available for construction purposes.
  • Interest-only payments. Since this loan is available for investment, borrowers have the option of making interest-only repayments.


Fees you can avoid

  • Monthly fees. Borrowers pay no ongoing monthly or annual management fees.
  • Variation fees. As long as borrowers don't request modifications to the loan like switching from one interest-rate type to another, or from one loan product to another, this fee is not charged.
  • Dishonour fees. These fees are charged to borrowers who don't make repayments on time or in the correct amount.

Fees you can’t avoid

  • Establishment fee: $600. All borrowers applying for home-loan credit are charged this fee for the administration and preparation of the loan and the relevant documentation.
  • Securities administration fee (SAF) $0. This covers costs like credit-reference fees and agent-settlement fees, as well land title searches and progressive drawdowns.
  • Third-party costs. All charges incurred for solicitors services and the government's stamp fee and registration are billed to the borrower.

How to apply for the Discount Variable home loan

To be eligible for this home loan, applicants must be:

  • Australian citizens or permanent residents
  • Over 18 years of age, and
  • Able to provide proof of a regular income.

In order for the bank to determine how much a client can borrow and whether or not they're able to make repayments, the following documents are required:

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

With the Discount Variable home loan's starting interest rate, CUA provides borrowers with an opportunity to make significant progress in the repaying their loan during the first 36 months.

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This page was last modified on 29 March 2016 at 11:08.

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