3 year fixed rates Citibank

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coolcup69

Hi there

New time forum poster, but have been reading for a little while now. Plenty of knowledgeable folk on here!

I had a quick question regarding 3 year fixed rates. I saw Citibank has a 3 year fixed rate at 5.75% and fees / charges which equate to a fairly competitive 3 year total cost proposition - does anyone know if this is the best in the market or there are others with lower total costs over 3 years?

Also, does anyone have experience having a home loan with Citibank? Are they any good? Any thoughts - pros / cons to them as lenders? I haven't seen many articles on the internet about their Australian operations. I am just looking for a no frills fixed rate loan.

Thanks very much.
 
3 year fixed @ 5.75% is one of the best ones out there.

It's good if you want no offset account or other features. There's really no 'good' or 'bad' lenders in a fixed home loan....since you won't be interacting with the bank for 3 years anyway!
 
Thanks very much Aaron. I agree with your point on not having to deal with them. I guess it would be good to know from anyone if they are absolutely garbage at customer service / internet portal is horrible or if there are any things people were positively surprised about. I just want to go in with my eyes open!!!

Also, is it true that these guys won't charge LMI even if you go to 85% LVR?
 
Yes Citibank does offer an 85% no LMI product. But there are special conditions attached to it - it isn't for everyone.

PS Personally I don't put many loans through Citibank because they are quite expensive and not that competitive. Their only edge I think is the 85% no LMI policy and even that isn't unique in the market.
 
Aaron_C said:
PS Personally I don't put many loans through Citibank because they are quite expensive and not that competitive. Their only edge I think is the 85% no LMI policy and even that isn't unique in the market.
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I just thought you said their 3 year fixed rate is one of the best on the market? Or are you talking about expensive in terms of standard variable rates (in which case I totally agree)?

Do you think anyone is better on a 3 year fixed rate basis?
 
I don't put many clients on fixed-rate because I generally advise against it. You don't know what's going to happen in 1 month's time, let alone 3 years...so it's always good to have flexibility going forward. And yes, I don't go with Citi because their variable rates are crap and they don't do lo-doc.

As for 85% LMI waiver, the security needs to be in a Metro category 1 area and the interest rate is higher.
 
Aaron_C said:
I don't put many clients on fixed-rate because I generally advise against it. You don't know what's going to happen in 1 month's time, let alone 3 years...so it's always good to have flexibility going forward. And yes, I don't go with Citi because their variable rates are crap and they don't do lo-doc.

As for 85% LMI waiver, the security needs to be in a Metro category 1 area and the interest rate is higher.
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Thanks heaps Aaron. I really appreciate the information and your prompt responses.

If others have had any dealings with Citigroup, I would also be very pleased to hear from you!
 
slooooooooooooooooo



so much so that some large brokerages that I know refuse to use them regardless of the rates.

No point getting a great rate if u cant settle on time

ta

rolf
 
coolcup69 - if your after a "cheap"fixed rate; then it's hard to argue that 3 years 5.75% is pretty good...BUT

Citibank is def def not an investors bank- high variable rates, LVR restrictions, slow, hard to do top up let alone any equity release, very choosy with location, no construction loans- even for a granny flat :eek:, no low doc, WORST serviceability model out of all the banks and they hate I/O ...gosh..:rolleyes:

They only good for their 85% NO LMI; for ppl who are strap for cash + don't care too much about serviceability.

But note that rate of 5.75% is Principle and interest only...for I/O it's an extra 0.15%

So the end question is; what are you trying to achieve? because in 3 years time you may be force to refinance out...and this will also cost you- so if your loan amount is not high enough the "cheap" 3 years fixed may not be that cheap after all....

Regards
Michael
 
Mick C said:
c they hate I/O ...gosh..:rolleyes:

But note that rate of 5.75% is Principle and interest only...for I/O it's an extra 0.15%
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Hi Michael

Thanks for this. When I look at their website it appears the additional 15 bps for interest only applies only to their variable rates and not their fixed rates? Do you know for sure if it applies to their fixed rates too?
 
The loading is actually 0.2% ( my bad); but this loading for I/O applies if you are wanting the 85% NO LMI ( applies to all product) - as that's one of the condition of the No LMI product...loading on I/O.

Regards
Michael
 
Also they are launching a new product next month...no idea what they will be doing/promoting- but let's see how good their bait is this time...
 
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