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Lender cuts rates by up to 43 basis points

One mortgage provider has today announced that it is cutting fixed interest rates for owner occupiers by up to 0.43 per cent, with its 2-year fixed rate for owner occupiers falling to 3.96 per cent.

CUA is also passing on a range of fixed rate reductions for investors, with rate cuts of up to 0.33 per cent p.a. The new fixed rates are available for home loan applications fully approved from today.

Under the changes, CUA will now offer interest rates below 4 per cent p.a. for owner occupiers across its 1-year (3.94 per cent p.a.), 2-year (3.96 per cent p.a.) and 3-year (3.99 per cent p.a.) fixed rate home loans. The fixed rates will complement CUA’s variable rates, which start from 3.99 per cent p.a. for its Fresh Start Basic (owner occupier) home loan.

Fixed rates for investors will start from 4.34 per cent p.a. for the 1-year fixed rate loan. The 2-year fixed rate for investors will fall to 4.36 per cent p.a., while the 3-year fixed rate will be reduced to 4.39 per cent p.a.

CUA’s general manager of products and marketing, Jason Murray, said the mutual lender had reviewed its suite of fixed home loan offers in line with the market, and was passing on a range of rate reductions that would benefit new borrowers or those looking to switch their mortgage to a fixed rate.

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“There are a lot of people shopping around for loans at the moment and the market is seeing an increasing number of borrowers considering fixed rate options. Now is a great time to lock in a very competitive fixed rate with CUA and benefit from being part of an organisation focused on helping our members,” he said.

“These reductions in fixed interest rates will be welcome news for first homebuyers looking to get into the property market. In Queensland, first homebuyers also have an additional incentive to enter the property market, with the Queensland Government recently confirming that the first home-buyer grant is being increased to $20,000 from 1 July, for a period of 12 months.”

Mr Murray said the reduction in investor interest rates also came on the back of recent changes CUA made to wind back some restrictions on investor lending by lifting maximum loan to valuation ratios (LVRs).

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>CUA is also passing on a range of fixed rate reductions for investors, with rate cuts of up to 0.33 per cent p.a. The new fixed rates are available for home loan applications fully approved from today.

Under the changes, CUA will now offer interest rates below 4 per cent p.a. for owner occupiers across its 1-year (3.94 per cent p.a.), 2-year (3.96 per cent p.a.) and 3-year (3.99 per cent p.a.) fixed rate home loans. The fixed rates will complement CUA’s variable rates, which start from 3.99 per cent p.a. for its Fresh Start Basic (owner occupier) home loan.

Fixed rates for investors will start from 4.34 per cent p.a. for the 1-year fixed rate loan. The 2-year fixed rate for investors will fall to 4.36 per cent p.a., while the 3-year fixed rate will be reduced to 4.39 per cent p.a.

CUA’s general manager of products and marketing, Jason Murray, said the mutual lender had reviewed its suite of fixed home loan offers in line with the market, and was passing on a range of rate reductions that would benefit new borrowers or those looking to switch their mortgage to a fixed rate.

“There are a lot of people shopping around for loans at the moment and the market is seeing an increasing number of borrowers considering fixed rate options. Now is a great time to lock in a very competitive fixed rate with CUA and benefit from being part of an organisation focused on helping our members,” he said.

“These reductions in fixed interest rates will be welcome news for first homebuyers looking to get into the property market. In Queensland, first homebuyers also have an additional incentive to enter the property market, with the Queensland Government recently confirming that the first home-buyer grant is being increased to $20,000 from 1 July, for a period of 12 months.”

Mr Murray said the reduction in investor interest rates also came on the back of recent changes CUA made to wind back some restrictions on investor lending by lifting maximum loan to valuation ratios (LVRs).

[Related: CBA sets record straight on 'mortgage war']

Lender cuts rates by up to 43 basis points
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