Powered by MOMENTUM MEDIA
subscribe to our newsletter

Citi’s mortgage rates plunge by up to 160 bps

The non-major has reduced variable and fixed rates across its owner-occupied and investment home loan products.

Citibank has slashed mortgage rates across its home loan product suite, effective for new business from Monday, 26 August.

The changes apply to loan amounts of $750,000 and over in NSW and Victoria and for loan amounts of $500,000 and over in all other states and territories.

Citi’s variable owner-occupied P&I home loan rates have been cut by up to 93 bps and will now start from 3.21 per cent (3.26 per cent comparison rate), while its fixed owner-occupied P&I rates have been cut by up to 160 bps and will now start from 2.99 per cent (4.61 per cent comparison rate).

Rates have also been slashed across Citi’s investment home loan product suite, for both borrowers paying P&I and for those paying interest only.

Advertisement
Advertisement

The bank’s variable investment P&I rates have been cut by up to 100 bps and will now start from 3.54 per cent (3.66 per cent comparison rate), while fixed P&I rates have been cut by up to 150 bps and will now start from 3.49 per cent (3.90 per cent comparison rate).

Further, Citi’s variable investment loans with interest-only terms have been cut by up to 100 bps and will now start from 3.74 per cent (3.88 per cent comparison ate), while fixed investment loans interest-only terms have been cut by up to 150 bps and will start from 3.69 per cent (4.89 per cent comparison rate).

Citi is the latest lender to reprice its mortgage product suite following the Reserve Bank of Australia’s back-to-back cuts to the official cash rate in June and July.

In recent weeks, several lenders have lowered their home loan offerings, particularly across their fixed rate mortgage products.

Earlier this week, Westpac’s subsidiaries (the Bank of Melbourne, BankSA and St.George Bank) also slashed fixed rates across their owner-occupied and investment home loan offerings.

PROMOTED CONTENT


The lenders announced cuts of up to 140 bps, effective for new home loan applications received from 21 August.

The Bank of Melbourne and St.George slashed rates by between 10 bps and 1.35 per cent, with both banks’ owner-occupied fixed rates now starting from 2.94 per cent and investment fixed rates starting from 3.64 per cent.

Meanwhile, BankSA has cut rates by between 10 bps and 1.4 per cent, with its owner-occupied fixed rates now starting from 2.99 per cent and its investment fixed rates starting from 3.69 per cent.

According to Canstar’s finance analyst, Steve Mickenbecker, the cuts have come in response to a decline in wholesale funding costs.

“The fall in bond rates has reduced longer-term funding costs for lenders, and the Westpac subsidiaries have been able to pass this on to borrowers,” he said.

Also reflecting on the changes, RateCity research director Sally Tindall noted the shift in the mortgage market over the past few months and expects the wave of fixed rate cuts to continue. 

“The idea of fixing your rate under 3 per cent until August 2024 is a foreign concept to a lot of Australian mortgage-holders,” she said. 

“While these low fixed rates may seem like sensational deals, we’re likely to see more cuts.”

[Related: Westpac subsidiaries drop fixed rate by up to 140 bps]

Citi’s mortgage rates plunge by up to 160 bps
Citibank
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.