Citibank has announced that it will be cutting its Citibank Mortgage Plus five-year fixed home loan rate to 5.35% per annum, calling it ‘one of the lowest in the Australian market’. This follows the recent cut of its two-year fixed home loan rate to 4.89%.
Vibha Coburn, head of mortgages at Citibank in Australia, says the phenomena of fixed rates being lower than variable rates continues to attract customers towards this style of home loan product.
“Fixed rates continue to be in high demand by consumers; with over 50% of our new applications having a fixed rate component. Since September 2012, Citibank has reduced its five-year fixed rates by 34 basis points, while our two-year fixed rates have dropped 86 basis points. We look to provide competitive alternatives for those customers who look for stability in their mortgage repayments," she adds.
As part of the new rate offering, Citibank is including a free 60-day rate lock which allows customers a guaranteed low fixed rate for 60 days after their application has been submitted, protecting them from rate alterations before their settlement date. Citibank offers borrowers who wish to take advantage of the new rate conditional approval in under 24 hours if all relevant information is supplied.