Your complete guide to home loans offered by CUA.
CUA is one of Australia's largest customer-owned banking brands. As well as home loans, it offers bank accounts, personal loans, credit cards, insurance and financial planning.
Who is CUA?
CUA, formerly known as Credit Union Australia, is committed to providing its customers with affordable options at a local level. As a 100% customer-owned institution, CUA is able to reinvest profits to help it offer affordable home loan options by reducing fees and interest rates.
August 2016 RBA announcement
CUA have chosen to reduce all standard variable rates for home loans by 0.12% and 0.10% for other variable rates effective 18 August 2016 following the RBA's decision to cut the cash rate. This will bring the owner occupier rate down to 4.69% and the investor rate down to 5.10%. See our news story for more information on the RBA's cash rate decision.
CUA Fresh Start Basic Variable Home Loan - Owner Occupier
CUA Home Loan Offer
The CUA Fresh Start Basic Home Loan is a basic home loan without all the bells and whistles you may not use. Available only to customers who switch their everyday banking to CUA by filling out the Everyday Banking Set-up form when applying.
CUA home loan comparison
Home loans offered by CUA
Basic Variable Home Loan
The Basic Variable Home Loan option is a good choice for homebuyers who are looking for a simple and easy-to-manage loan.
This loan option offers unlimited redraw options and accepts lump sum payments with no penalties incurred. You can opt for an interest-only repayment plan, while an establishment fee does apply.
Fresh Start Basic Variable Home Loan
The Fresh Start Basic Variable Home Loan option is a basic home loan with no ongoing fees, flexible repaymnents and free redraw facilities. In order to take out this loan you will need to move all your day-to-day banking to CUA which you can do upon application of your home loan.
Fresh Start Variable Home Loan
The Fresh Start Variable Home Loan has a competitive interest rate and can be taken out by new borrowers to CUA with at least 20% deposit or exisiting CUA borrowers who are increasing their loan by at least $50,000. It comes with a 100% offset account, the ability to make additional repayments and redraw facilities.
Standard variable home loan
The award-winning Standard Variable Home Loan provides a redraw option and allows lump sum payments to be made, which can lower the overall amount of interest due. This loan only uses the variable interest rate option, though interest-only repayment plans are available. Offset financial accounts are also available, while there are no monthly account-keeping fees associated with this type of loan. An establishment fee does apply.
Fixed Rate Home Loan
The Fixed Rate Home Loan is designed for home buyers who want a loan with a consistent repayment plan. When obtaining this type of loan, you will have a fixed interest rate for a set term. At the conclusion of the term, the loan will automatically convert to a Standard Variable Rate Home Loan.
Interest-only repayment plans are available. There are no account maintenance fees, but an initial payment is required for the loan establishment fee.
Premium Fixed Rate Home Loan
The Premium Fixed Rate Home Loan option is similar to the Fixed Rate Home Loan option, but allows you to offset up to $50,000, make additional payments into your loan of up to $50,000 during the fixed period and has a redraw facility. You will receive the competitive fixed home loan rate for a set period. At the end of this set period, your home loan will revert to the Standard Variable Home Loan.
Pros and cons of CUA home loans
- Competitive interest rates. CUA offers competitive interest rates on both its fixed and variable loan options.
- Lump sum payments. Most of the home loans offered by CUA allow you to make lump sum payments on your loan without incurring any penalties. This will allow you to pay your loan off sooner and reduce the overall amount of interest paid.
- Redraw feature with no associated fees. All CUA loans that allow for extra payments to be made offer a redraw feature for people facing emergencies. This option is available with no extra fees associated.
- Loan establishment fees. CUA does charge a loan establishment fee that must be paid in order to obtain any type of home loan.
How to apply for a CUA home loan
Applying for a home loan with CUA is straightforward, but does require you to provide key personal and financial information. This information is used by CUA to determine your eligibility for a home loan and the amount.
- Online application. The first step in applying for a loan with CUA is to complete a short online application. This process only takes a few minutes to complete. You must be over the age of 18, a permanent resident of Australia, and receive regular income from wages or self-employment.
- Mobile call with CUA agent. After you submit your online application, an agent from CUA will contact you by phone. This agent may ask you for additional information and will explain the loan options available to you.
- Face-to-face meeting with CUA. The next step will be to have a face-to-face meeting with an agent from CUA. At this point you may be required to provide CUA with paperwork to complete your loan application.
Documents needed to apply for a CUA home loan
Personal documentation is the first type of information that CUA is likely to require from you. Below we summarise the most common types of personal documents you may need to provide to CUA:
- Proof of identification. Before your loan application can be approved, you will need to show proof of identification. CUA uses the government point identification system and requires you to show at least 100 points worth of identification to apply for a home loan.
- TFN. You will also need to provide CUA with your Tax File Number (TFN) when applying for a home loan.
In addition to personal information, you will also need to provide documentation relating to the property you are purchasing. CUA uses this paperwork as assurance that the home is being properly sold and that the purchase value is correct.
- Property assessment. In order to obtain a loan with CUA, you will need to have a property assessment done on the home you want to purchase. This will ensure that the amount you are purchasing the property for is close to the actual value of the property.
- Property title. You will need to provide CUA with a copy of the title of the property you are purchasing. This ensures that the party you are buying the home from has the legal right to sell the property.
- Home inspection. Depending on the type of home loan you obtain from CUA, you may be required to have a home inspection done prior to purchase. This will help to alert you to any potential problems with the home before you buy it.
You will also need to provide CUA with documentation relating to your personal finances, so CUA can assess your ability to repay your home loan.
- Income. You will need to provide CUA with proof of your wages or self-employment earnings. This may be in the form of regular payslips or year-end tax reports.
- Additional assets. If you have substantial assets or income other than wages, you will need to provide CUA with documentation of these. CUA will use this information to determine the amount of your home loan.
- Major outstanding debt. Depending on your specific set of circumstances, you may need to provide documentation for any major outstanding expenses you have. CUA check to see how much you still owe and if you are current with your payments.
CUA’s home loan range may very well offer the right deal for you, but make sure to do your research and compare other loans on the market before you sign on the dotted line.