Citibank cuts five-year fixed-rate home loan to 5.35%

Following the May RBA rate cut , lenders continue to cut their fixed-rate home loan offerings with Citibank the latest to do so.

The bank has cut its Citibank Mortgage Plus five-year fixed home loan rate to 5.35% per annum, which it claims is the lowest five-year fixed-rate offering in the Australian market.

UBank currently offers a five-year refinancing-only fixed-rate home loan at 5.41%, the next cheapest five-year fixed-rate offering, according to RateCity.com.au.

Five-year fixed-rate home loans are the second most popular fixed-rate term, according to research by homeloanfinder.com.au, accounting for around 20% off all fixed-rate home loans.

Three-year fixed-rate home loans make up two-thirds of fixed-rate home loan applications in Australia.

Citibank previously cut its two-year fixed home loan rate to 4.89% at the end of April.

“Fixed rates continue to be in high demand by consumers; with over 50%  of our new applications having a fixed rate component," says Vibha Coburn, head of mortgages at Citibank in Australia.

“Since September 2012, Citibank has reduced its five-year fixed rates by 34 basis points, while our two-year fixed rates have dropped 86 basis points.

"We look to provide competitive alternatives for those customers who look for stability in their mortgage repayments," she says.

Citibank is also offering a free 60-day rate lock which allows customers a guaranteed low fixed rate for 60 days after their application has been submitted.

Citibank offers borrowers who wish to take advantage of the new rate conditional approval in under 24 hours if all relevant information is supplied.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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