CUA launches its first ‘investor only’ home loan
CUA has recently launched its first ever ‘investor only’ home loan, easing restrictions around lending to investors, and opening the door for more Aussies to snap up an investment property.
The new investor home loan offer, the Kick Start Variable Home Loan for Investors, is a 2 year introductory loan, and will be available for a limited time to investors taking out a new loan of at least $350,000 with a maximum LVR of 90%.
The competitive offer, with a 3.99% interest rate (comparison rate 4.37%*) has come just in time for the booming spring property season.
“Spring is traditionally a busy time for the market, with more properties for sale and more buyers shopping around, so CUA wants to make sure we have a good value option we can offer to investors,” said Chief Operating Officer for Member Services, Andy Rigg.
“Many of our owner-occupier borrowers also have an investment property, or are looking to buy one, and it’s important we can provide good value on both fronts.”
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But borrowers should keep in mind that the offer is for a 2 year introductory period, after which the loan rolls over into the investor Fresh Start Basic Variable Home Loan, which has an interest rate of 4.39% (comparison rate 4.44%*).
“No matter what home loan offer you’re looking at it’s important to be aware of things like introductory rates and whether the home loan is still competitive once it rolls over to the ongoing rate,” said Mozo Director Kirsty Lamont. “Not all intro offers are bad news - but the last thing you want is to start off with a great deal and wind up with a dud later down the line.”
The new loan is part of CUA’s efforts to make borrowing easier for the residential investors who make up ¼ of its home loan portfolio.
“CUA is here to help current and future members, whether they’re purchasing or refinancing a home to live in, or buying an investment property,” Rigg said.
Lending restrictions for investors have been winding back at CUA since March 2016. Now, residential investors can enjoy the same LVR as owner-occupiers who apply for a home loan with the customer-owned lender.
For most home loan products, this means a maximum LVR of 95%, although the Fresh Start Basic and Fresh Start Variable home loans carry a lower LVR of 80%.
If you’re looking to invest, check out our property investment guides section for all the tips, tricks and know-how you need to snag the perfect property at the right price.
*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The
comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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