flagFounded: 1946

businessOwned by: Customer owned

monetization_onFunded by: Retail deposits and wholesale capital markets

securityLMI Provider: QBE LMI

account_balanceLender type: Credit Union

The major banks exist to make a profit for their shareholders. CUA is owned by, and operates for, the benefit of its customers!

What that means is that they offer outstanding customer service, competitive interest rates, and their profits get returned to you as better rates and lower fees.

When you think about it, it’s somewhat of a surprise that more Australians don’t switch from a major bank to an organisation like CUA.

CUA is the largest customer-owned financial institution in Australia so it combines the strength and systems of a major bank with the customer service and value of a credit union.

How do CUA’s home loans compare?

They’re great at

But they’ve got some drawbacks…

What home loans types do they have?

CUA have had a range of award winning fixed and variable rate home loans that suit most home buyers or investors.

  • The CUA Fresh Start Basic Variable is a low rate, no ongoing fees, no frills home loan that suits someone who has a large deposit and doesn’t need additional features like an offset account.
  • The CUA Fresh Start Variable has a slightly higher interest rate than the basic variable, but also has a 100% offset account.
  • The CUA Rate Breaker Package was once a highly competitive home loan with a rate below the major banks, however these days it has been superseded by CUA’s other home loans. This is CUA’s professional package designed to compete with the pro packs offered by the major banks.
  • The CUA Fixed Rate Loan is on offer for fixed terms of 1, 2, 3 or 5 years and usually has a competitive fixed rate below or on par with the major banks.

Who should apply with CUA?

CUA isn’t suitable for all borrowers.

We see CUA as being suitable for someone with one home loan with a large deposit. If you are this type of person then we think CUA is an excellent choice! As mortgage brokers we’re only too aware of the games played by the major banks to change people’s interest rates after their loan is advanced. You’re far less likely to have this happen to you if your loan is with CUA.

We think there are likely to be better options for a first home buyer with a small deposit or someone who is buying multiple investment properties.

Tips for applying with CUA

Not all mortgage brokers have access to CUA so before you apply via a broker you should ask them if they are accredited.

Make sure that you compare CUA to other lenders before applying as while they do have some great home loans, they aren’t competitive for all deposit sizes, loan sizes or customer types.

Compare CUA to other lenders

Not sure which lender is right for you? Our Home Loan Experts can help!

Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.

  • dei

    I’m self employed and I want a low doc loan so does that mean CUA is not the way to go? Who then?

  • It’s likely that CUA will decline your low doc application. However, our brokers are specialists in low doc loans and can help you find the right lender for your loan application. Just call us at 1300 889 743 to speak to one of our expert brokers or send us an online enquiry:

  • Clyde

    I like the idea of a 100% offset but on a fixed rate, it seems weird. Aside from the normal fact that I may go over the extra repayments limit, I would like to find out how much I may need to pay in break fees in different scenarios and situations. What’s an easy way to do this?

  • Hey Clyde,

    A very simple way for you to find out your potential break fees is by using the break costs calculator on our website. This is very simple to use and you can enquire online directly through it if you’d like to further discuss it. Here’s the link to the calculator:

  • Holl

    Does a smaller deposit mean I have to pay a higher interest rate?

  • Hi Holl,
    That is generally the case. If you have a small deposit, you’ll have to meet stricter lending criteria and will likely have a higher rate as well. However, banks may not drop your rate when you’ve paid down your loan or house prices rise. Even if you’re not a high risk borrower anymore, your rate may still be high.

  • Nann

    Less than 2 years in my home loan, CUA has hiked my rates by almost 0.60 (I’m not going to give the actual figures, but they are VERY close to that). Useless to say I’m feeling a bit cheated by their tactics, especially because the product I was on died as soon as the housing market went into bear mode.

    Banks have a big base of customers, so any profit they make go to their pockets. I say fair enough, because banks ACTUALLY have to put in some work to retain/grab their customers. Credit Unions like CUA however don’t have much going on for themselves: when times are tough, it’s EVERY customer who takes the brunt (especially new customers like me). Yet, they don’t put as much work to advertise/get new customers. So, really, they don’t work for the individual, more for the intangible “collective”.

  • Hi Nann,
    Yes, banks can do that sometimes and it’s really painful to be at the receiving end. We have a panel of almost 40 lenders, so call us on 1300 889 743 or enquire online https://www.homeloanexperts.com.au/free-quote/ if you want to refinance your home loan to another lender with reduced interest rate.