One of Australia’s second tier lenders is slashing its standard variable rate to reward customers with greater savings.
Citibank has today launched a new basic mortgage promotion, which gives significant discounts to customers with lower LVRs.
Customers with an LVR of 70 per cent or less will be given a 0.85 per cent discount on their standard variable rate, taking the mortgage down to just 6.95 per cent.
Customers with a loan LVR between 70 and 80 per cent will receive a 72 basis point discount, taking the standard variable rate down to 7.08 per cent, while those with an LVR between 80 and 90 per cent will be given a 0.48 per cent discount.
Citibank’s head of mortgages - strategy, marketing and product Belen Lopez Denis told The Adviser that the bank was keen to reward those customers who had taken the time to build a significant savings pool.
“Customers that have saved a significant house deposit before leaping into home ownership should be rewarded for their efforts with significant rate discounts,” she said.
“Citibank is determined to offer one of the most competitive product suits on the market. This basic mortgage promotion follows our decision to slash almost 1 per cent off our Mortgage Plus Home Loan product."
Mrs Lopez Denis said the lender was determined to become a real alternative to the majors, and as such, would continue to provide well-priced products and excellent broker support.