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Credit Union Australia has slashed its premium range of fixed rate home loans to the same rates as the basic range.
This gives customers with an opportunity to get premium features at a “no frills” price, the non-conforming lender said.
Its one, two and three-year premium fixed rates have been cut by 0.30% to 4.89% and its five year premium fixed rate has been cut by 0.29% to 5.50%.
Comparison rates for these products are now 5.40%, 5.36%, 5.31% and 5.50% respectively.
CUA is also waiving establishment fees for new home loans with an LVR below 80%, and also on the first year
Product head Mark Petty said they aimed to offer consistently better value to its more than 400,000 customers.
“Our interest rates consistently remain among the lowest in Australia. For example, our basic three-year fixed rate home loan has been lower than the average of the Big Four banks since September 2011, and our standard variable home loan rate has been lower by at least 0.5% since April 2010, compared to the average of the Big Four banks’ equivalent products.”
Another non-bank lender, Homeloans, also recently cut its rates on its Accelerate range, aimed at borrowers who fall outside mortgage insurance and banking guidelines.
Accelerate Jumbo loan rates have fallen by up to 0.91% and Accelerate Jumbo low-doc loan rates have fallen by up to 0.76%. Accelerate Plus rates have been cut by up to 0.65% and Accelerate Plus low-doc rates by up to 30%.
Citibank has also recently reduced its one-year fixed rate from 4.74% to 4.59% and its five-year rate from 5.59% to 5.39%.
