On Thursday (27 May), Citi put into effect a rate reduction for its variable rates, following a review of its mortgage pricing.
As of yesterday, its Basic Variable rate for owner-occupiers dropped to 2.29 per cent per annum (2.34 per cent p.a. comparison).
Its investor loans have also dropped, starting from 2.59 per cent for those paying principal and interest, and 2.79 per cent for interest-only repayments.
Its standard variable rate now starts from 2.39 per cent (2.55 per cent).
As well as reducing its variable rates, the non-major bank has also decreased its one-year and two-year fixed rate home loans for both owner-occupied and investment purposes.
These have fallen by 0.10 per cent, now starting from 1.89 per cent for owner-occupiers (comparison, 2.75 per cent and 2.71 per cent, respectively).
Investor rates start from 2.19 per cent.
“This is our second lowering of our variable rates in recent weeks, reflecting our commitment to the broker channel and delivering competitive rates for brokers and their clients,” Matt Wood, Citi Australia head of mortgage distribution, told Mortgage Business.
He noted that the bank’s cashback offer had also been extended to 30 June 2021.
The bank said it was “currently meeting both market and broker expectations” in regards to its current turnaround times.
However, according to the April 2021 Broker Pulse survey, brokers had told Momentum Intelligence that its turnarounds were sitting at 15 days.
The move to drop rates comes ahead of the sale of Citi’s consumer banking business in Australia and 12 other markets.
Citi is currently progressing its sale process for its Australian consumer business, which includes mortgages, credit cards, retail banking and wealth management for high-net-worth individuals.
In Australia, the sale of the consumer business aims to enable Citi to focus its investment and resources to its institutional business, which includes investment banking, capital markets and advisory, markets and securities services, commercial banking and treasury and trade solutions.
Find out more about turnaround times and how they’re impacting the mortgage experience at the Better Business Summit 2021. Places are limited, so make sure you secure your place at the five-state event asap!
[Related: Major bank slashes fixed rates]
Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.