Citibank New Offer

August 14, 2017
Raymond Teh

For a limited time, Citibank is offering: 
- 3.63% on its offset variable owner occupied loan with $350/annum package fee
- 3.63% on its basic variable owner occupied loan with nil ongoing fee

The conditions:
1) minimum loan size of $500,000
2) no pre-approvals or refinance with cashout i.e. drawing down more funds than amount currently owing
3) principal and interest repayment only
4) settlement within 90 days of submission

This is a marketing leading rate especially if you are borrowing >80% of the property value. The rate can apply up to the lending ratio of 90% plus mortgage insurance.

What else you need to know? 
1) Expect delays in loan assessment. With rates like this, the lender must by now be inundated with loan applications
2) Post settlement service may not be Citibank's strength
3) Citibank has lending ratio restrictions for off the plan properties or high-density apartments in certain postcodes

Are there cheaper rates than Citibank?
Absolutely but they may be from online lenders which may not be an Authorised Deposit-taking Institution (ADI). Citibank is an ADI where the government guarantees deposit up to $250,000. The list of ADIs here:

Posted in: Interest rates

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