That 160 basis point interest rate cut will apply to Citi’s fixed owner-occupied P&I home loans, with fixed home loans to start from 2.99% p.a. (4.61% p.a. comparison rate).

Citi’s variable owner-occupied P&I home loans will be cut by up to 93 basis points, and will start from a new rate of 3.21% p.a. (3.26% p.a. comparison rate), which is enough to make these rates quite competitive in the market.

For investment home loans, variable investment P&I rates will be cut by up to 100 basis points and will start from rates of 3.54% p.a. (3.66% p.a. comparison rate), and fixed investment P&I interest rates are being reduced by as much as 150 basis points, starting from a new rate of 3.49% p.a. (3.90% p.a. comparison rate).

Interest-only loans are being changed too. Citi’s variable, interest-only investment loans will be cut by up to 100 basis points to a new rate of 3.74% p.a. (3.88% p.a. comparison rate) while fixed interest-only investment loans will be cut by up to 150 basis points as well, starting from 3.69% p.a. (4.89% p.a. comparison rate).

According to a note Citi sent to brokers, the rates above are quoted for loan amounts of $750,000 and over in New South Wales and Victoria and for $500,000 and over in all other States and Territories.

Loans below $750,000 and $500,000 will require an additional 0.20% p.a. loading.

A Citi spokesperson told Savings.com.au “it is a business priority for Citi to continue to grow in the mortgages space.”

“Citi’s changes to its interest rates reflect our commitment to having a competitive offering,” the spokesperson said.

Looking for a low variable rate home loan? The table below displays owner-occupier products which may represent the best of the big four banks, best of the top 10 customer-owned banks and the best of the larger non-banks. 

Lender

VariableMore details
Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Online ExclusiveUp To $4K Cashback

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
VariableMore details
Refinance OnlyApply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *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. Rates correct as of March 4, 2024. View disclaimer.

These are some significant rate cuts from Citi and have the potential to affect a broad number of people.

Citi is the 13th biggest home-lender in Australia according to APRA’s monthly banking statistics, with more than $7.2 billion in housing loans across owner-occupier and investment properties.

The news of Citi’s impending rate cuts follow yesterday’s news of Westpac and it’s related subsidiaries (St. George, Bank of Melbourne and BankSA) cutting fixed-rate home loans by as much as 135 basis points.

Yet demand for fixed-rate home loans has continued to fall in recent months, which might be why these large institutions are gutting their fixed home loan rates by so much.

According to the latest data from Mortgage Choice, demand for fixed-rate mortgages fell to 14% in July, with CEO Susan Mitchell saying borrowers are still reluctant to fix due to expectations of further Reserve Bank rate cuts.

“It’s not entirely surprising that borrowers are choosing to keep their options open by opting for variable rate home loans. The reality is, the opportunity to save on repayments if the Reserve Bank cuts the cash rate is too good to pass up.

“In the minutes of the RBA Board’s August meeting released yesterday, members judged it reasonable to expect that an extended period of low-interest rates would be required and suggested that further easing of monetary policy may be on the cards.”





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