Citi raises fixed home loan rates, slashes variable

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.

Loan purpose

Refinancing

Loan amount

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Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Offset	Redraw	Ongoing Fees	Upfront Fees	Max LVR	Lump Sum Repayment	Extra Repayments	Split Loan Option	Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Bare Home Loan (Basic OO P&I <90%)	5.94% p.a.	5.98% p.a.	$2,978	Principal & Interest	Variable			$0	$530	90%				Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Dedicated loan specialist throughout the loan application.	Go to site	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.89% p.a.	5.80% p.a.	$2,962	Principal & Interest	Variable			$0	$0	80%				Built and funded by CommBank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	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.	Go to site	Compare	Promoted	Disclosure
Regional Australia Bank	Regional Australia Bank Home Loan Fixed (Owner Occupier, Principal and Interest, max lvr 60%) (3 years)	5.99% p.a.	6.02% p.a.	$2,995	Principal & Interest	Fixed			$0	$0	60%				Owner Occupier Fixed 3 Years Principal & Interest 40% Min Deposit Redraw More details	Competitive rates to help you save A Dedicated Relationship Manager Certainty of repayments with a fixed rate term	Go to site	Compare	Promoted	Disclosure
Homestar	Homestar Star Nova LVR <70% (Owner Occupied, Principal and Interest)	5.93% p.a.	5.93% p.a.	$2,975	Principal & Interest	Variable			$0	$395	70%				Owner Occupier Variable Principal & Interest 30% Min Deposit Redraw More details		Go to site	Compare		Disclosure
Reduce Home Loans	Reduce Home Loans EconoME Home Loan (Owner Occupier, Principal & Interest, LVR 60%)	5.99% p.a.	6.01% p.a.	$2,995	Principal & Interest	Variable			$0	$150	60%				$3000 Cashback T&Cs apply Owner Occupier Variable Principal & Interest 40% Min Deposit Redraw More details		Go to site	Compare		Disclosure

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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.