Competition in the mortgage market is heating up, with one second tier lender cutting its most popular home loan package by 94 basis points.
Yesterday Citibank announced it would drop the rate on its Mortgage Plus Home Loan product, taking the rate to just 7.08 per cent p.a on standard variable and standard offset loans.
Citibank’s head of mortgages - strategy, marketing and product Belen Lopez Denis said the rate cut would put the product in the top five for consumers.
“We want to offer our consumers a very competitive home loan package and cutting the Mortgage Plus home loan rate helps us achieve just that,” she told Market Focus.
Ms Lopez Denis said 2011 was set to be a year of growth for Citibank.
The lender aims to triple its new business volumes over the coming year with the help of its broker partners.
“We hope to leverage our broker channel to generate larger volumes. But we understand to do this we need to offer a very competitive product suite, which is why we will be rolling out a number of new product enhancements over the coming weeks and months.”
Ms Lopez Denis said the lender would also continue to provide quality broker support.
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