Variable rates continue falling

This promotional rate applies to loans of at least $150,000 with a maximum LVR of 80 per cent for applications that are received no later than 2 January.

Citibank's head of east mortgage distribution, Pietro Tantillo, told The Adviser that the 4.68 per cent rate was timed to allow brokers to capitalise on the peak season for real estate.

"That can also be crossed with our competitive fixed rates, which come with a free 60-day rate lock. We feel that that will lead to future growth for Citibank and brokers alike," Mr Tantillo said.

"Citibank is proud to be a bank that listens to feedback. As a result, we're looking to broaden our reach and come up with a more compelling solution for brokers and clients."

One lender after another has announced cuts to its variable rates during 2014.

Firstmac owner Kim Cannon and MAS co-founder Troy Phillips told The Adviser last week that it was possible that rates were already at or near their bottom.

Fixed rates have also tumbled throughout the year, especially during a hectic period in late July and early August, which began with Commonwealth Bank reducing its five-year rates.

Citibank's head of retail distribution, Vibha Coburn, said the housing market was continuing to evolve in the wake of the GFC.

"When you look at the growth in the housing credit market, growing at about 6.5 to 7.0 per cent at present, you're still not back to pre-GFC or even GFC levels, which was 8.0 and 9.0 per cent," she said.

"The question is: who are the people who are actually in the market at present? Are they first home buyers? Are they investors?

"We know that first home buyers still haven't come back into the market as such. So there is a way to go."

[Related: Citibank exec talks broker recruitment]