CUA makes big mortgage claims

Credit Union Australia mortgage customers were effectively 0.50 per cent ahead of the game during the first couple of weeks in May, because of CUA's much publicised 25 basis point rate cut, effective 27 April, and a delay in passing on the RBA's 25bp rate hike.

CUA makes a similar claim to Abacus about potential savings available to big bank mortgage customers who switch. CUA says the average big bank customer can save $30,000 over the life of their mortgage.

Despite the sometimes lagging nature of CUA rate hikes, "The CUA claim doesn't stack up," said Steven Anderson, from financial comparison service GBST.

The CUA claim is based on Infochoice research that assumes an average rate gap between CUA's headline SV mortgage rate and an average of the headline SV mortgage rates of the big four banks of 0.51 per cent over the life of the 30-year mortgage.

CUA's current SV mortgage rate is just that - 0.51 per cent below an average of the big four banks.

"I mean yes, CUA has low fees and a generally good product that is cheaper on average than the banks but you can't make huge assumptions with a lifespan of thirty years like that," said Anderson.