Non-major lender Citibank has withdrawn lending for overseas borrowers unless they meet certain high-value eligibility criteria.
A note sent out to brokers on Tuesday (7 March) mentioned that tighter lending requirements for overseas borrowers implemented by Australian banks had led to a “substantial increase” in the number of new originations of overseas loans to Citibank.
“To maintain a balanced portfolio and to rectify the issues we have encountered in processing these loans, Citibank, effective immediately, will now only offer overseas loans to its existing and prospective Citigold clients,” the note said.
A Citigold client is an individual who has deposited or invested $250,000 or more through Citibank.
This change to lending criteria is effective immediately for all new business and expired pipeline applications.
“Here at Citi, we are committed to ensuring we have balanced mortgage portfolio and maintain acceptable loan processing times. Limiting overseas borrower loans to our Citigold clients will help ensure Citi can achieve these objectives,” Matt Wood, Citibank’s head of mortgages distribution, told Australian Broker
“Processing offshore loans have an additional layer of complexity which can sometimes result in a delay in approvals. However, in many cases the borrower often has an existing relationship with Citi and the application can be processed quite quickly.”
Limiting overseas borrower loans to Citigold clients ensures the bank can maintain the appropriate levels of service to both broker partners and clients, he said.
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