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.auMozo.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<75%)

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

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

Comments

Be the first one to comment on this article
What would you like to say about this project?