CUA reduces its interest rates on fixed home loans

Credit Union Australia (CUA) has announced a reduction to the interest charged on its fixed-rate home loans.

The customer-owned lender set it at 6.34 per cent for three years, with a comparison rate of 7.02 per cent, reports Property Observer.

With the reduction in the cost of the home loans, CUA has undercut the four big banks, the cheapest of which is ANZ at 6.59 per cent and 7.52 per cent.

Westpac follows ANZ, with National Australia Bank and the Commonwealth Bank of Australia behind.

Andrew Hadley, CUA's group general manager for strategy and marketing, commented: "Given the current uncertainty in the market, Australians looking for stability and security around their mortgage repayments may find fixing their loan for a longer-term period of three years a good option."

This comes after Dean Rushton, chief operating officer of Loan Market told the Australian Associated Press that fixed-rate packages are increasingly popular in the current financial climate.

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