Non-major cuts variable rate to 4.79%

by Mackenzie McCarty24 Sep 2013

Non-major lender Citibank has expanded its home loan offering with the aim of targeting a more affluent client base.

As reported by Australian Broker, the lender announced a 4.84% variable rate earlier this month for loans over $150,000 with an LVR of less than 80%. However, Citi’s head of mortgage marketing, product and strategy, Belen Lopez Denis, says the group is keen to target a wealthier client base.

“In looking at the demand of our current customers and our target segment, we have decided to ‘tweak’ that offer and make it a 4.79%p.a. variable rate for loans over $500,000, as long as the LVR continues to be less than 80%.”

She says the new offering is available for a limited time and will run until the 29th of November, as long as the loans are settle by February 28, 2014.

Lopez Denis says Citi’s target market includes people who are ‘affluent and locally-minded’, particularly those who travel overseas on a regular basis.

“We are always reviewing our offers to ensure that we’re actually meeting their needs.”

In keeping with Citi’s focus on travel-oriented customers, the Mortgage Plus package has been designed so that rewards points earned on credit cards available through the package, can be transferred to a ‘wide range’ of travel programs.

“That’s  looking at not just fulfilling their needs from a mortgage perspective, but also our overall value proposition and ensuring that it actually meets their everyday needs,” she says.

“And our service offering continues to be 48 hours to turnaround time, so we maintain our current service delivery.

The current 4.84%p.a. promotional offer will continue for loans between $150,000 and $500,000.