Citibank cuts two-year fixed-rate home loan to 4.99%

Citibank has today cut its two-year home loan rate to 4.99% per annum and reduced its three-year fixed home loan rate to 5.14%.

This is the first announced fixed-rate cut in more than two weeks.

The last lender to announce fixed-rate cuts was CUA, which cut its three-year fixed-rate to 5.1% on March 20.

A day earlier, Westpac ended its 4.99% two-year fixed-rate promotion pushing this rate up to 5.29% under its package home loan offering.

"Based on recent research, we know that nearly one in three new borrowers locked in a fixed rate on their home loan during March 2013,” says Belen Lopez Denis, head of mortgage marketing at Citibank.

Citibank is offering two other mortgage promotions currently

The bank is offering a free 60-day rate lock which allows customers a guaranteed low fixed rate for 60 days after their application has been submitted, protecting them from rate alterations before their settlement date.

It will also refund the $750 application and switching fee to customers who apply to refinance their current home loan before April 30 2013.