One non-major has thrown down the gauntlet to its competitors, launching a market leading five year fixed rate.
Yesterday, Citibank cut 20 basis points from its five year fixed rate, taking it to 5.59 per cent.
In addition, the lender trimmed 30 basis points from its one, two and three year rates, taking them to 5.35 per cent per annum.
Vibha Coburn, head of mortgages at Citibank in Australia, said with rates this low, now was a good time to fix part or all of a mortgage.
“Consumer sentiment has worsened in recent months. With these lower fixed rates, there should be growing recognition that housing has become more affordable and consumer sentiment should begin to lift. A fixed rate home loan provides the benefits of lower fixed repayments, certainty of payment and an opportunity for consumers to improve cash flow management,” she said.
“While a fixed rate loan provides low rates, the variable rate loan provides the ability to make additional repayments to pay off a home loan sooner,” she said.
Citibank is also offering a free 60-day rate lock which allows customers to guarantee these low fixed rates for 60 days after application which typically lasts up until settlement.
“The fee 60-day rate lock is a unique feature and provides further certainty to customers in these changing times,” Ms Coburn said.