Citibank cuts fixed rates: a guide to the lowest fixed and variable rate offerings
Citibank has become the latest mortgage lender to cut its fixed-rate home loans following recent reductions announced by the Commonwealth Bank, ME Bank and the Greater Building Society.
The pace of lenders cutting fixed-rates has picked up as the appetite for the product grows among cautious borrowers.
Citibank has repriced its one, two and three year fixed-rate home loans to 5.55% per annum, a reduction of 44 basis points over the past month.
Citibank also reduced its five year fixed-rate by 35 basis points to 5.89% and says it’s the first lender to offer a five year fixed-rate below 5.9%.
The Commonwealth Bank’s five-year fixed-rate is 5.99%, Westpac and NAB offer a five year fixed-rate of 6.19% and ANZ at 6.24%
The cheapest advertised five year fixed rate on RateCity.com.au is 5.95% offered by Greater Building Society.
Citibank offers a standard variable rate of 7.09% and a basic variable of 6.87%.
Property Observer has scoured the most well-known mortgage comparison websites to determine the lowest variable rate home loan and one- and three-year fixed home loans currently available.
The following results are based on advertised mortgage rates listed by ratecity.com.au, Mozo.com.au and infochoice.com.au as of September 18:
Lowest variable rate offerings:
Provider | Loan name | Rate | Comparison rate* |
UBank (NAB) | UHomeloan Refinance | 5.62% | 5.62% |
Mortgage View | Mortgage View Pro Pack | 5.65% | 5.67% |
Loans.com.au | Dream Catcher | 5.65% | 6.02% |
Nationwide Mortgage | True Saver Home Loan | 5.65% | 5.65% |
State Custodian | State Custodians Standard Variable Offset Loan (LVR | 5.72% | 5.94% |
Lowest one-year fixed-rate offerings
Provider | Loan name | Rate | Comparison rate* |
ME Bank | Super member fixed | 5.39% | 6.05% |
Newcastle Permanent | Fixed rate home loan | 5.49% | 6.39% |
Greater Building Society | Fixed rate ultimate home loan | 5.49% | 6.29% |
CUA | Fixed rate home loan | 5.50% | 6.23% |
Citibank | Fixed rate home loan | 5.54% | 7.06% |
Lowest three-year fixed-rate offerings
Provider | Loan name | Rate | Comparison rate* |
ME Bank | Super member fixed | 5.39% | 6.46% |
UBank (NAB) | UHomeLoan for Refinance – Fixed Rate Loan | 5.54% | 5.69% |
Bank of Queensland | Fixed Loan | 5.55% | 6.54% |
Newcastle Permanent | Residential Fixed | 5.59% | 6.24% |
HSBC | Fixed rate loan | 5.59% | 6.37% |
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar Refinancing and the Interest Rates Riddle