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?
- 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
- Up to 4 splits in one home loan available
- Borrowing over 90% of the property value
- Construction loans
- People with bad credit
- Self-employed borrowers who cannot prove their income
- People who want to deal with their lender through a branch
- Conservative on Expat loans
- Shades rental income more than other lenders
- Restrictive lending for high density/inner city postcodes
- All non-base incomes are shaded significantly including casual income
- Overseas incomes are not accepted
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.
They also offer a Standard Offset Home Loan and a Standard Variable Home Loan.
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 checklist to prepare for your mortgage application.
Note: This is the latest application checklist as of November 2020. Please call us or refer to Citibank for their most up-to-date document requirements.
Citibank client story
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.