Citi raises fixed home loan rates, slashes variable

author-avatar By on May 07, 2021
Citi raises fixed home loan rates, slashes variable

In an emerging trend of late, some home loan rates are up and some are down, with Citi adding to the pile of recent fixed home loan rate rises.

This follows from Citi's announcement that it will cease Australian banking, with the exact date to be advised, pending sell-off.

Citi's fixed home loans to get hiked this week were all raised by 30 basis points. A couple of highlights include:

  • Standard Fixed P&I 5 Years 80% LVR: Up to 2.59% p.a. (4.22% p.a. comparison rate*)
  • Investor Standard Fixed P&I 5 Years 80% LVR: Up to 2.89% p.a. (4.34% p.a. comparison rate*)

Meanwhile, some of Citi's variable home loans to get an interest rate reduction were:

  • Basic Variable P&I 80% 350k+: 15 basis point cut to 2.44% p.a. (2.49% p.a. comparison rate*)
  • Investor Basic Variable P&I 80% 350k+: 10 basis point cut to 2.69% p.a. (2.74% p.a. comparison rate*)

Other home loans like Citi's 'Mortgage Plus' packaged home loans were cut by up to 20 basis points. 


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Move Bank also raised its 'Complete Package' home loan for owner occupiers fixed for one year paying principal and interest (P&I) by 10 basis points.

It now sits at 2.09% p.a. (3.12% p.a. comparison rate*).

Raising home loan rates has been an emerging trend of late, with UBank and Aussie having done so recently.

Westpac also hiked four and five-year fixed loans by up to 30 basis points towards the end of April.

There are various reasons for this, including the Reserve Bank signalling the cash rate will rise in 2024, and potentially earlier, as well as the Term Funding Facility - which provides cheap funding for banks - rolling back in June.


Photo by Joshua Lawrence on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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