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ISCOVER
Staff Reporter
Citibank will offer a new one-year fixed rate home loan of 5.69 per cent – down from 5.79 per cent.
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Speaking to The Adviser, Citibank’s head of mortgages strategy, marketing and product Belen Lopez Denis said the yield curve has continued to trend down over the last few weeks, although still very volatile and susceptible to most recent European news.
“We continuously look at our fixed rates and ensure that they remain competitive and are aligned as close as possible to the cost of funds," she said.
Ms Lopez Denis said Citibank’s fixed home loan rates continue to be lower than the average standard variable rate – and in some cases over 25 basis points under; which is an unusual phenomenon.
“For those considering purchasing a house, it is a good idea to look at the fixed rate options. With so much market uncertainty, it might be worth considering fixing all or part of the mortgage,” she said.
“At the end of the day, to be truly competitive in this market, you need to go beyond price; you also need to look at service, policy and product. That’s the reason features like a free 60-day rate lock that gives certainty to customers at no cost are great value for brokers and their clients.”
According to Ms Lopez Denis, the bank is now passing those loans submitted as per the published check list through to conditional approval within 48 hours.
“Our turnaround times are not just quick, they are now consistent and in this volatile market consistency is crucial to brokers and their clients.”
The rate cut complements the lender’s Mortgage Plus product expansion and realignment of some of its new to bank rates, which gives borrowers access to range of flexible and feature-rich credit cards.
Ms Lopez Denis said the Mortgage Plus enhancements teamed with the realigned variable rates meant the lender was now one of the most competitive in the market, both in terms of price and product offering.
