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Bank slashes rates again

by Staff Reporter10 minute read

Competition is intensifying in the fixed rate space with one of Australia's non-majors dropping its three year fixed rates yet again.

This morning, Citibank announced it would cut the rate on its three year fixed rate to just 5.75 per cent, effective December 19.

Since July this year, the lender has hacked 157 basis points from this particular fixed rate term.

Speaking to The Adviser, Citibank's head of broker distribution, mortgages Aaron Milburn said the lender was constantly reviewing its rates in order to provide the leading rate to borrowers.


"We review our fixed rates on a weekly basis," he said.

"At the moment, the yield curve is inversed so that the longer term rates are lower than the short term rates, giving mortgage customers an opportunity to lock in fixed rates lower than variable rates.

"This gives borrowers some certainty in uncertain times."

The lender's one and two year fixed rate home loans are now over 56 basis points lower than new to bank variable rates.

Mr Milburn was also quick to point out that the bank would run a full staff complement over the Christmas period.

"Data has shown us that brokers are just as busy now as any time of the year. We want to support our broker partners in any way, which is why we will have a broker support team running over Christmas," he said.

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