Global bank introduces “brilliant” rate

by Melanie Mingas24 Jan 2019

As the cost of credit increases, many lenders have announced out of cycle rate increases. However, one global institution is bucking the trend by launching a promotional rate for its Basic home loan.

The campaign offer applies to Citi Australia’s Basic home loan for both owner occupied and investment purposes. The Basic loan is now offered at 3.55%pa (3.60% comparison) for owner occupiers and 3.89%pa (comparison 3.94%) for investors.

Both loans offer: zero account keeping fees; a redraw facility; flexibility to make payments weekly, fortnightly or monthly with the option to make additional penalty-free payments; and up to four split accounts that can be combined with a standard fixed mortgage account.

Kate Luft, Citi Australia’s head of retail banking said, “Citi has appetite to grow its mortgage book in 2019, and this new offer differentiates us from many other lenders.

“We want mortgage brokers and customers to know that we are committed to being a competitive alternative to the big four banks, while still offering loan-seekers the security that comes with being an experienced, global player,” she added.

The loans are for new to bank P&I customers only, who are salaried or PAYG. The maximum LVR is 80%, with a minimum loan amount of $500,000 in NSW and Victoria and $250,000 elsewhere. An application fee of $399 applies in all states and territories.