Citibank has cut 75 basis points from its benchmark interest rate, enabling potential home owners to borrow more money.
Speaking to The Adviser, Citibank’s Belen Lopez Denis said the lender had reduced its benchmark rate significantly more than its standard variable rate reduction – offering clients a greater borrowing capacity.
“Traditionally, lenders will reduce their benchmark rate by the same amount as their standard variable rate. However, we reviewed our servicing calculator and saw there was potential to cut more basis points from our benchmark rate,” Ms Lopez Denis said.
“While we remain in line with our responsible lending commitments, our decision to lower the benchmark interest rate means we can effectively lend clients up to 7 or 8 per cent more. This is not just a win for borrowers, but brokers as well.”
Ms Lopez Denis said the lender’s decision to cut its benchmark rate combined with its competitive suite of fixed rate products, 60-day rate lock guarantee and $1,000 fee refund promotion ensured brokers had a wider range of options to offer to their clients.
“We want to be the non-major of choice for brokers and borrowers. We are constantly asking for feedback from our broker partners and are committed to putting this feedback in place.”