CUA cuts three-year fixed rate to 5.25%

Lenders continue to cut their fixed rates with CUA today cutting its three-year fixed rate home loan to 5.25% per annum.

It follows fellow mutual lender ME bank cutting its three-year fixed standard home loan rate to 4.99% on both packaged and non-packaged loans earlier this week and all the major banks cutting their two-year fixed rates to 4.99%.

Jason Murray, CUA’s general manager, products & marketing, points out that the three-year fixed rate is 19 basis points lower than the average of the big four banks’ equivalent products, and with fixed rates the most popular option for term home loans, he recommends customers should seize the opportunity to benefit from the lower rates.

“Fixing a mortgage not only provides payment certainty over an extended period, but can also help to stabilise your monthly outgoings. While the Official Cash Rate is at the same low levels it was at the peak of the GFC, economists are seeing signs of an upturn in global economic conditions which suggests that rates may not go much lower, so now could be an ideal time to lock in your mortgage rate,” he says.