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Jessica Darnbrough
In a bid to position itself as a true alternative to the majors, Citibank has released a new aggressive pricing structure.
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According to the lender, the new rates aim to reward customers with greater savings.
Speaking to The Adviser, Belen Lopez Denis, Citibank's head of mortgages – strategy, marketing and product, said the new rate initiative was not a limited promotional offer but rather an extension of the lender's LVR strategy that was rolled out in February this year.
"Earlier this year, we announced that customers with an LVR of 70 per cent or less would be given a 0.85 per cent discount on their standard variable rate, taking the mortgage down to just 6.95 per cent," Ms Lopez Denis said.
"This initiative proved so successful with our broker partners that we have decided to turn this into our new permanent pricing structure."
From this week, 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; those with an LVR between 80 and 90 per cent will be given a 0.48 per cent discount.
Ms Lopez Denis said 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.
