One of Australia’s non-majors has reduced its three year fixed rate product to 5.85 per cent – down from 5.99 per cent.
Effective from today, Citibank will also slash their 1 and 2 year fixed rates by 10 basis points, down to 5.79 per cent p.a.
Citibank’s head of mortgages strategy, marketing and product Belen Lopez Denis said the yield curve has inverted strongly once again, giving the lender reason to cut rates.
Ms Lopez Denis said Citibank’s fixed rate products are now lower than the average standard variable rate – which is an unusual phenomenon.
“For those considering purchasing a house, it is a good idea to look at the fixed rate options. With so much market uncertainty, it might be worth considering fixing all or part of the mortgage,” she said.
“Citibank also offers a 60-day free rate lock so customers can cost-effectively guarantee the low fixed rate for 60 days after application.”
According to Ms Lopez Denis, the bank is now passing those loans submitted as per the published check list through to conditional approval within 48 hours.
“Our turnaround times are not just quick, they are now consistent and in this volatile market consistency is crucial to brokers and their clients.”
The rate cut complements the lender’s Mortgage Plus product expansion, which gives borrowers access to range of flexible and feature-rich credit cards and a fee free transaction account.
Ms Lopez Denis said the Mortgage Plus enhancements teamed with the promotional discounted variable rate of 5.89 per cent p.a. meant the lender is now one of the most competitive in the market, both in terms of price and product offering.