Citibank cuts two-year fixed home loan to 4.89%

Lenders continue to entice conservative-minded borrowers with Citibank today cutting its two-year fixed mortgage plus home loan to 4.89%.

This makes it one of the sharpest fixed-rate home loans in the market currently.

The lowest two-year fixed-rate appears to be a rate of 4.79% offered by online lender iMortgage via its Fusion ProPack home loan, though the loan requires a hefty 25% deposit.

Loan-to-value (LVR) ratios are up to 90% for Citibank fixed-rate mortgages, according to its website.

Since February, Citibank has cut its two-year fixed-rate home loan by 30 basis points.

Belen Lopez-Denis, heading of mortgage marketing at Citibank Australia, said recent research showed we are now reaching the lower band of the RBA target’s interest rate “creating speculation for potential interest rate increases”.

Citibank is also offering a 60 day rate lock, guaranteeing a customer a low fixed-rate offer for 60 days after the application has been submitted.