flagFounded: 1985 in Australia, 1812 in the USA
businessOwned by: NYSE Listed
monetization_onFunded by: Retail deposits and wholesale capital markets
securityLMI Provider: QBE
account_balanceLender type: International Bank
Citibank isn’t a lender that most Australians consider when applying for their home loan. Citibank doesn’t have a large branch network and most of its advertising is for credit cards, so most people hear about their home loans from a mortgage broker.
However, they’ve got some unique products and clever credit policies which make it a great choice for some borrowers. That being said for many people there is a better option to choose from.
How do Citibank’s home loans compare?
They’re great at
- Special interest rate offer on their basic or professional packages
- 60 days free rate lock on their fixed rate loans
- Business loans at home loan interest rates
- They can lend up to 85% of the property value with no LMI
- Working with overseas borrowers, especially if they have Citigold status
- Working with mortgage brokers
Coronavirus / COVID-19: Citibank home loan policy changes
Reacting to the coronavirus (COVID-19) shutdown and increasing unemployment rate, Citibank has added an additional step in verifying income details for new home loan applications.
For all PAYG deals, they need verbal or email confirmation from the employer to confirm client’s employment details. You’re required to submit your HR’s (human resource) email address when you submit an application to facilitate employment verification. As a bare minimum, an email from your work email address to their credit department may be accepted as an alternative if they cannot reach your HR department.
For self-employed customers, Citibank now needs to have a detailed explanation about consistency of income especially for those working in hospitality, tourism, entertainment, personal services, and retail industries.
To find out exactly how you can best present your application, and what additional income documents are required to get approved amidst this pandemic, please get in touch with our specialist mortgage brokers.
Coronavirus / COVID-19: Citibank mortgage relief options
Citibank has announced that as part of their mortgage relief options for customers facing financial hardship due to coronavirus (COVID-19), customers can vary their loan repayment amount, frequency of repayments, and avail other options depending on their individual circumstances.
Citibank mortgage customers can email them at firstname.lastname@example.org with your details, and they will get back to you shortly. (Note: There is no requirement to complete any documents).
What home loans types do they have?
Citibank has a very simple product range which includes their Basic Variable Home Loan with no frills and their Mortgage Plus Professional Package which has an offset account and bigger discounts for loans over $250,000 or $500,000.
The choice of which loan to take really depends on what specials Citibank has on at any one time. In some cases that means their Basic Loan is cheaper, and at other times it’s their Mortgage Plus Package.
Citibank also tends to be competitive with Fixed Rate Loans under their Mortgage Plus Package for terms of 1 – 5 years. This combined with their free rate lock offer means that you can fix your rate without the upfront fees that other banks charge for locking in your rate at the time of application.
Can I negotiate a better rate with Citibank?
Citibank can sometimes offer negotiated pricing for larger loans, however in most cases their special rates are already sharp enough.
A good mortgage broker can lodge a pricing request for you with Citibank as well as other lenders.
Tip for applying with Citibank
Use Citibank’s home loan application and checklist to prepare for your mortgage application.
Note: This is the latest application checklist as of May 2016. Please refer to Citibank for their most up-to-date document requirements.
Citibank client story: Julian, NSW
- To cash out equity in his mortgage to renovate his home.
Julian moved to Australia from the UK a couple of years ago on a 820 Spouse Visa.
At the time, he and his wife were able to buy their first home and they have since been renovating the old place to bring it back to its former glory.
Having already gone through a lot of their own savings, Julian still needed more funds to complete the renovation works. Luckily, the property had grown in value so he was looking to access some equity.
The couple’s home loan was first approved by Citibank and they were still happy with the service so they decided they just wanted to do a straight refinance and cash out.
In the end, they were able to cash out $60,000 for renovations and their broker was able to refinance them to a cheaper interest rate.
Compare Citibank to other lenders
Not sure which lender is right for you? Our Home Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.