Second tier chops at variable rate

by Mackenzie McCarty28 Jun 2012

A second tier has lopped its variable rate down to 5.89% as it seeks a spot on brokers' shopping lists.

Citibank said the 5.89% rate is available on loans greater than $150,000 with an LVR of less than 80%, as part of its rate for risk policy which prices different loan risks at different rates.

The rate complements its recent Mortgage Plus expansion which gives borrowers access to credit cards.

Head of mortgages strategy, marketing and product Belen Lopez Denis said the changes meant the lender was now one of the most competitive in the market, both in terms of price and product offering.

“We know that to be competitive in this market, you need to be well priced and flexible in terms of product – this promotion achieves just that,” Lopez Denis said.

“At the end of the day, you need to be competitive on price because if we are not, we will not be on the shopping list for many brokers and their customers.

"That said, to be truly competitive in this market, you need to go beyond price, you also need to look at service, policy and product.

Lopez Denis said loans that meet its published check list are receiving 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.”