Lender 'listening to brokers' by simplifying pricing

by Adam Smith18 Feb 2013


Another lender has announced rate moves, and says it has sharpened its proposition to brokers by simplifying its price structure.
Citibank has announced a raft of new measures it said will enhance its appeal to brokers. The bank's head of broker distribution, Aaron Milburn, told Australian Broker a simplification of pricing structure is a result of listening to the broker market.
"The removal of our price-tiering was generated off the back of broker feedback. We have been listening to what brokers have been asking for," Milburn said.
The bank will open up lower rates previously only offered to loans of $500,000 and above to loans of $150,000 and above, Milburn said. The move means loans above $150,000 at less than 70% LVR will now be eligible for a 5.49% rate, while LVRs of 70-80% willl draw a 5.54% rate and loans with LVRs from 80.01% to 90% with LMI will draw a 5.59% rate.
Milburn said the move meant that consumers with loans from $150,000 to just below $500,000 will now be paying around 5bps less than the previous pricing structure.
"What we're effectively doing is simplifying the whole proposition and making it clearer for brokers to be able to sell to their clients," he said.
Citibank also announced it would drop its one and two year fixed rates to 5.19%. While some other lenders have now dropped fixed rates below 5%, Milburn touted the bank's 60-day free rate lock offer.
"Yes, there are some cracking fixed rates out there, but none of them that I know of give the client the guarantee of the rate underpinned with a a free 60-day rate lock. The rate lock is important, because there's some real volatility around fixed rates right now, as the pricing is determined off the swap curve," he said.