Citibank Home Loan: Basic 3.63%P.a. (CR 3.68) or Mortgage Plus 3.63%P.a. (CR 4.03) - [Min 500k] + up to $2000 WW GC @ Naritas

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      Marketingnaritas @ Naritas Finance on 02/09/2017 - 20:39

      Remember the days where 'platinum' was top of the range? Not anymore, their platinum card is indeed their cheapest card. @rep, how much more for the prestige or signature cards?

      hahaha I'm not sure it is the cheapest card (i.e. the proverbial poverty pack). It just isn't their very top card (Prestige is as it is the only - or one of the only - Visa Infinite cards on the entire Australian credit card market).

      That being said, if the card costs were a major sticking point and your application was very solid (1mil+ loan size/low LVR/strong credit score/perfect borrowing history), these kinds of matters are typically negotiable.

      Hope this helps :)

  • 

    Marketingnaritas @ Naritas Finance on 02/09/2017 - 20:11

    $350 annual fee and you still have to pay an additional annual fee for Citi's top of the range credit cards…

    You raise a good point. Our understanding is that you can get Citibank Platinum as a part of the package. If you wanted a Signature or Prestige card we have been led to believe that there would be an additional cost.

    That being said, the Citibank Prestige card is traditionally aimed at HNWI borrowers (due to the $120,000 minimum income and very minimum credit limit) who are likely to be seeking CitiGold solutions that would typically come with other incentives to offset concerns to do with the CC annual fee.

    Hope this helps.

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  hippyhippy on 02/09/2017 - 19:39

  Can use citi cards at all atms?

  • 

    bozbargain on 02/09/2017 - 20:03

    +1

    Free withdrawals at any Citibank, Westpac, St George, Bank of Melbourne and BankSA ATMs Australia-wide.

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  Sweet3st on 02/09/2017 - 19:51

  +1

  Anything for < $250,000?

  • 

    Marketingnaritas @ Naritas Finance on 02/09/2017 - 22:14

    Anything for < $250,000?

    Many thanks for the question.

    Yes, we do have a number of competitive finance products on our panel for loans $150,000+. We also genuinely value the support of our clients who are fortunate enough to have smaller outstanding balances on their mortgages.

    In fact, for clients with smaller loans and sizeable equity in their property(ies) we often find that dependent on their strategic objectives, there is a lot of value we can bring to the table. That being said, our ability to provide our clients rewards such as very large gift cards (like in this promo) is severely limited by the profit margins associated with loans <$250,000.

    If you had a scenario for a <$250,000 that you wanted some input on, please don't feel shy to get in touch with us (via here). There'd be no obligations and we'd sincerely try our hardest to deliver you great customer service and options from our lender panel that could make you satisfied.

    Hope this helps.

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  spiff on 02/09/2017 - 20:04

  +2

  I don't have any loans that will meet this criteria unfortunately but great work EC and I look forward to seeing more deals like this in the future.

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  SmartCover on 02/09/2017 - 20:15

  This deal is getting enough attention for Andrew to Visit each major city and group buy!

  • 

    WhyAmICommenting on 02/09/2017 - 20:34

    Broden?

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  aert on 02/09/2017 - 20:29

  I hear it comes with a free pair of shackles. Enjoy, future debtslave!

  • 

    jackwoz on 02/09/2017 - 21:18

    +1

    You should join the club, its great fun

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  tunzafun001 on 02/09/2017 - 20:41

  +1

  Fees include valuation costs? Metro/ rural. Multiple properties?

  • 

    Marketingnaritas @ Naritas Finance on 02/09/2017 - 23:27

    Fees include valuation costs? Metro/ rural. Multiple properties?

    Many thanks for the great questions.

    Further details on Citibank's policy with respect to valuation costs (and fees/charges in general) is located here.

    In short, for standard metro properties (typically interpreted as under $2mil val) Citibank covers val costs (up to $500) with their standard set of fees referenced in the deal post.

    For rural properties the best approach is to send us the specific address (and property details) upfront. That way one of our credit advisers can obtain an indication in writing of what valuation costs will be applicable before any application is lodged.

    With respect to applications that include multiple properties or ultra high value properties (our head office is in Mosman where the average house price is $3mil+ so we see these deals quite frequently), this is quoted on an ad hoc basis. It's probably worth noting that this particular promotional offer by Citibank does not have hallmarks of being oriented to applications with multiple collateral properties but can work well with high value PPORs. In short, costs may/may not be passed on based upon the overall merits of the application. Suffice to say, if you are likely to be a candidate for CitiGold then a discussion about fee waivers is not likely to be wasted time. If you had a highly complex scenario with a $500,000 loan size (minimum requirement), you'd need to be realistic about your chances of avoiding additional costs.

    On a side note, it's probably worth pointing out for those considering this deal for a highly complex property portfolio that trust applications are not accepted at this price. In our experience, less than 1% of applicants set up their PPOR in a trust, however, when we do see that happening it often relates to multiple property owners with complex financial requirements.

    Hope this helps.

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  tradiesunited on 02/09/2017 - 21:59

  Cua is pretty good

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  choister on 02/09/2017 - 22:13

  +2

  Hi what would be the discount from the citi's normal variable rate and is this discount guaranteed for the life of the loan?

  • 

    Marketingnaritas @ Naritas Finance on 02/09/2017 - 23:44

    +1

    Hi what would be the discount from the citi's normal variable rate and is this discount guaranteed for the life of the loan?

    Great questions.

    It's definitely best for us to grab a copy of a loan contract to show you how Citibank words the discounts. Once we have a dummy contract we scan/diseminate we'll post it here so you can review it directly.

    In the meanwhile, the essence of the offer, is that these are life of loan discounts on variable products vis a vis they are not intro or honeymoon rates.

    For reference:
    Basic Variable 5.45% p.a. CR 5.50% p.a.
    Standard Variable Offset 5.67% p.a. CR 5.81% p.a.

    That being said, in our experience, bank quoted 'standard' products are largely arbitrary numbers with variable lending products. Lenders build in so many conditions into their variable loan agreements that over time the net cost of your loan (rates, fees, transaction charges, etc) that you end up paying is largely up to the desire of the lender to retain you as a customer.

    Hence why we see so many people setting an agenda to re-evaluate their loan every few years (instead of sticking in the same loan for the full 25-30 year term).

    Hope this helps and expect a follow up post by COB Monday :)

    • 

      choister on 05/09/2017 - 22:30

      Hi I called up Naritas and I received some forms to complete as well as info on Newcastle Permanent and Bank of Sydney deals.

      Cheers

      • 

        Marketingnaritas @ Naritas Finance on 06/09/2017 - 00:15

        Hi Choister, we've requested that dummy copy of a Citibank mortgage contract so you can see the terms and will post it here once available. If you would like, please send us a quick PM we'll also notify you directly on here or via email (if that could be of further assistance).

        For anyone interested, the Newcastle Permanent promotion referenced above is located here and Bank of Sydney promotion is located here. Both have proven/are proving to be extremely popular at present (perhaps on par with this offer - time will tell).

        Hope this helps.

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  lousy on 02/09/2017 - 22:27

  Can I apply subject to valuation ? I would want to refinance based on today's sale price not what I originally purchased at , how conservative is your valuation policy ?

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    Marketingnaritas @ Naritas Finance on 02/09/2017 - 23:51

    Can I apply subject to valuation ?

    Yes you could. You would, however, need to specifically mention this to your allocated credit adviser upfront so that they took steps to manage this need right from the start. You could make such an enquiry using the form located here.

    how conservative is your valuation policy ?

    Citibank uses 3rd party certified valuers that are typically major private or public companies that many other lenders also use.

    Their interpretation of the individual reports does not show a clear trend of extreme conservatism.

    That being said, valuation is a hotly debated topic in lending (and rightly so). For scenarios where ample valid statistical reference points exist (i.e. highly liquid markets with recent directly comparable sales) you ought not be overly concerned about the likelihood of a disappointing valuation.

    However, for highly unique properties in relatively illiquid markets, establishing a fair value for the purposes of credit can be a difficult process for the valuers - in those instances one needs to be realistic when considering the likelihood of a valuer and/or lender being brash and throwing caution to the wind on a low interest rate loan.

    Hope this helps.

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  Maglia Nera on 02/09/2017 - 22:32

  +2

  if anyone else wants to become a Naritas affliaite click on here

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  ifonlyiwasyounger on 02/09/2017 - 22:42

  Any attractive rates for term deposits from 6 to 12 months?

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    Marketingnaritas @ Naritas Finance on 03/09/2017 - 10:07

    +1

    Any attractive rates for term deposits from 6 to 12 months?

    Many thanks for the great question.

    Our team are licenced credit advisers (AKA mortgage brokers and/or commercial finance brokers). We hold an Australian Credit Licence. Advisers who recommend term deposits are different to us, they are commonly referred to as financial or investment advisers (they must hold an AFSL). As such, we can't recommend you an attractive rate for a term deposit.

    HOWEVER - Citibank is one of only a handful of lenders we work with that have divisions that actively seek term deposits and large cash investments from wealthy people (i.e. you happen to have $150-$250K as a minimum sum to invest). An example can be found here. As such, it'd be our pleasure to introduce you to some very pro-active senior team members at CitiGold that we know (which will help you cut past the mess of low level customer service people that you get through general enquiries). If you were interested please send us an enquiry using the secure form located here.

    Hope this helps.

    • 

      ifonlyiwasyounger on 03/09/2017 - 18:45

      Thank you nartitas. I will look into your suggestion(s) closely.

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  bargainatoraah on 02/09/2017 - 22:54

  Not surprised Naritas answered every question except the one about comparison rate.

  • 

    Wally on 03/09/2017 - 00:02

    obfuscation = marketing win

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    Marketingnaritas @ Naritas Finance on 03/09/2017 - 00:03

    +3

    hahaha that question was only deprioritised because:

    1. Another user (PuppieWayne) provided a very good answer and
    2. In our humble opinion, comparison rate is a virtually useless measure of the true cost of a loan for a standard borrower and is only quoted because it happens to be a legal requirement for consumer credit products. Why is it virtually useless for many borrowers? Because it is nearly always based upon a loan size of $150,000 held for a full loan term which is modelled on 25 years. However, this deal is for a product with a minimum loan size of $500,000 (with many applicants likely to be borrowing multiples of that figure) and for a standard loan term of 30 years - which sincerely never happens, because literally no one who cares about loan cost will stay in the same mortgage for 30 years. Furthermore, the average national loan size is also ~$400,000 with standard loan term being 30 years these days (and not 25).

    Furthermore, comparison rate does not take into account rebates, operational costs or qualitative factors. All of which are extremely important to your standard borrower, especially one that is likely to be concerned about cost and is therefore likely to re-evaluate their product setup every few years.

    One would be best served calculating their net effective rate or true rate for their desired loan retention period (commonly 3 to 5 years) using Excel or Google Sheets. If anyone would like assistance with that one of our credit advisers would gladly be willing to provide guidance.

    Hope this helps.

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  banzini on 03/09/2017 - 00:23

  banks r theftz

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  RDY4WR on 03/09/2017 - 00:24

  What if you refinance after receiving the $1500?

  Could take this deal then refi to nab for their $1440 cash back. Nab offer is oved $250k loan amount

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  rodinthink on 03/09/2017 - 00:46

  Is it possible to get this Home Loan in Top End, Darwin?
  Even though Citibank doesnt have a branch here

  • 

    Marketingnaritas @ Naritas Finance on 03/09/2017 - 08:50

    Is it possible to get this Home Loan in Top End, Darwin?

    Thanks for the great question :)

    The team at Naritas loves NT borrowers, we surprisingly get a lot of you NT folk who are in medicine and engineering and you are great borrowers. Similarly, as a general rule of thumb, Darwin and Alice Springs borrowers are typically frequently considered okay by our panel lenders. Surprisingly, we haven't yet tested out an NT scenario on Citibank for this promo, however.

    Perhaps you can send us a PM or enquiry with your postcode (or better still, address so we can check for flood rating/fire risk) and proposed LVR. That way we can make a comment to you as soon as we run it by a senior Citi credit assessor. If you'd be open to that, please click our username for PM or here to send us an enquiry.

    Hope this helps.

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  MrBillions on 03/09/2017 - 05:14

  +1

  I like that ozbargain direction !!!

  Well done with this deal.

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  ely on 03/09/2017 - 07:25

  Looks like a sweet deal, but my mortgage is fixed for another couple of years yet and I assume the costs to break are brutal. Rate is only 12 basis points less than my fixed portion (22 less for my variable), so not a huge amount of savings anyway (except for the GC, which would be $1k in my case).

  • 

    brettd on 03/09/2017 - 10:08

    If your fixed rate is lower than your variable rate, technically the bank should pay you to break it. Though I doubt they will the break costs shouldn't be large.

    • 

      ely on 03/09/2017 - 15:27

      No, the bank would (probably) have financed the fixed portion of my loan at the time of approval, locking in their returns.

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  enzioFirenze on 03/09/2017 - 07:55

  what happens if you decide to pay off the mortgage early?

  • 

    Marketingnaritas @ Naritas Finance on 03/09/2017 - 09:32

    what happens if you decide to pay off the mortgage early?

    Many thanks for the great question and for the upvote :)

    There is a $350 exit charge, however, there is not an economic break cost or DEF/exit penalty associated with the Citibank Basic or Mortgage Plus Offset loan.

    If you had a specific scenario you were evaluating we'd love to help you analyse it for pros/cons/costs etc. Please feel free to send us an enquiry via the form located here.

    Hope this helps.

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  LurvinOZB on 03/09/2017 - 08:43

  Hi OP, thanks for the deal. For transparency, what do you get (current or future) as part of this deal when we sign up with Naritas?

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  tradiesunited on 03/09/2017 - 08:57

  How doesn't this compare to cua advanced variable 3.74%?

  • 

    Marketingnaritas @ Naritas Finance on 03/09/2017 - 09:39

    How doesn't this compare to cua advanced variable 3.74%?

    CUA is one of the few lenders not on our accredited lender panel - although we're open to adding them in future.

    As such, we're not in a position to comment as an accredited expert or introducer on that particular offer at this point.

    What we can do is assist you in understanding many of the specifics of this promotion and how they may (or may not) meet with your particular requirements as a potential borrower. We can then help you contrast those against the CUA offer if you happened to have all of the relevant figures/T&Cs available from them. To commence that discussion please click here and select "Provide detailed information for a quote". That way we will be able to send you a secure link so that you may populate a credit profile/needs analysis which will give our credit advisers a reasonable basis to comment accurately.

    Hope this helps.

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  MyLoginName on 03/09/2017 - 09:41

  And how doesn't it compare to Loans.com.au Easy Offset 3.72% - No ongoing fee..offset account with Visa debit card?

  • 

    Marketingnaritas @ Naritas Finance on 03/09/2017 - 10:36

    And how doesn't it compare to Loans.com.au Easy Offset 3.72% - No ongoing fee..offset account with Visa debit card?

    Thanks for the question.

    You'll see some coverage of this in an earlier thread located here.

    If you wished to have a more detailed comparison between these options based upon your individual circumstances please do not hesitate contact us as it would be our pleasure to assist. To do so, please click here and select "Provide detailed information for a quote".

    Hope this helps.

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  brettd on 03/09/2017 - 10:04

  Aside from slightly lower applications fees and. 03% rate, any significant differences between this basic offer and the HSBC offer below?
  https://www.hsbc.com.au/1/2/thedifference

  I guess the Woolworths gift card is a nice offset for the application costs though.

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  Marketingnaritas @ Naritas Finance on 03/09/2017 - 10:21

  Aside from slightly lower applications fees and. 03% rate, any significant differences between this basic offer and the HSBC offer below?
  https://www.hsbc.com.au/1/2/thedifference
  I guess the Woolworths gift card is a nice offset for the application costs though.

  Thanks for the great question.

  One would naturally need to do their own calculations, however, as far as we can tell some clear differences include:

  1. You get the expert support and service of the Naritas team both at application and for the life of the loan.
  2. You get a cheaper variable interest rate.
  3. The gift cards should be putting many people well ahead on net costs.

  Hope this helps.

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  uniqualz on 03/09/2017 - 11:05

  Hi Rep,

  I've read through your website, but I can't quite make enough sense of it. We have a $500k interest only home loan against our home with Westpac, where I've negotiated 0.8% off the standard variable rate. What ~benefit is there for us to move this to you guys.. Ours has an offset account against it as well. Thanks.

  • 

    Marketingnaritas @ Naritas Finance on 03/09/2017 - 11:50

    +1

    I've read through your website, but I can't quite make enough sense of it. We have a $500k interest only home loan against our home with Westpac, where I've negotiated 0.8% off the standard variable rate. What ~benefit is there for us to move this to you guys.. Ours has an offset account against it as well. Thanks.

    Many thanks for taking the time to visit our website and for your questions :)

    Probably the benefits will broadly fit into two categories if they (hopefully) exist ;) :

    1. We'd aim to pitch you a solution that was was mathematically superior to your present circumstances. This would typically take the shape of some kind of gift card or cash back to offset or completely negate your switching costs PLUS a better repayment/interest rate cost modelled to your desired period of product retention (which could be 12-18 months at the extremely short end - to 3-5 years for a typical borrower).
    2. We'd aim to pitch you a solution that had qualitative superiority. You are provided access to tertiary educated and highly experienced/insightful consultants who provide extended support hours to our clients not only at application, but on demand for the life of your loan. We've been in business for nearly 15 years and a lot of our direct experience has come from handling some of the most demanding clientele from inner city Sydney - Read: The biggest mortgage borrowers in Australia where the small differences add up to large costs - and we win business from banks who hotly compete for such borrowers with our ability to serve their needs. We also have substantial experience in understanding the mindset of cost-conscious borrowers with smaller mortgages and have pro-actively served some of the Ozbargain community over the past few years.

    With respect to point 1, interest only lending is, for better or worse (depending on who you chat with), not an area where there is a good deal of transparency on public pricing from lenders right now.

    In short, over 90% of the time we see offers for good quality applicants with $500K+ loans that are better when customised to their specific circumstances than what is widely promoted to the general public as standard pricing. As such, we'd recommend that if you were interested in getting an indication of our capabilities on that front that you contact us via the form located here and select "Provide detailed information for a quote".

    Hope this helps :)

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  Malgonquin on 03/09/2017 - 11:26

  +1

  Long time lurker, once-a-year poster.

  I refinanced through Naritas last year, and Andrew was remarkably helpful. In particular, he was happy to do phone calls to talk me through loan options between 9pm and 10pm to match my availability. I can give them a big wrap for customer service.

  • 

    Marketingnaritas @ Naritas Finance on 03/09/2017 - 12:12

    @Malgonquin, huge thanks for the lovely feedback. It is sincerely appreciated as is your support as a client :)

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  dynamite on 03/09/2017 - 12:40

  Hi,

  My partner is currently on a TR (Partner visa Subclass 820), will her earning capacity be included when calculating borrowing power? I understand that some banks do not have the risk appetite in considering TR income, but some do.

  Cheers

  • 

    Marketingnaritas @ Naritas Finance on 03/09/2017 - 14:44

    +1

    Many thanks for the great question, Dynamite :)

    My partner is currently on a TR (Partner visa Subclass 820), will her earning capacity be included when calculating borrowing power?

    For some of our lenders, this is definitely possible. This offer with Citibank, however, is not an offer we have tested appetite for TR 820 visa applicants with.

    I understand that some banks do not have the risk appetite in considering TR income, but some do.

    We definitely have a number of lenders that will regularly approve TR 820 applicants, in fact, we have a run down of what we'd typically be looking for listed here.

    In short, due to the dynamic nature of lender interest in new migrant and TR lending, the most competitive offers are assessed thoroughly on an ad hoc basis vis a vis some loans are assessed in a fairly streamlined way (with minimal fuss/questions) others generate a lot of questions about the character and capacity of the applicant. TR lending falls into the latter category. As such, if you want to get a customised quote based upon your specific circumstances please complete the form located here and select "Provide detailed information for a quote".

    Hope this helps.

  • 

    samprofs on 03/09/2017 - 16:18

    +3

    Hi,

    Broker here. Subclass 820 Spousal visa- CBA and Bankwest will do it up to 85%lvr. Bank of Melbourne and Westpac are also good options and can do it up to 80% LVR. Please be aware that their is additional stamp duty payable on your wives portion of ownership at 7% in Victoria. However, if you buy AS 'JOINT TENNANTS' structure you do not need FIRB approval. 'TENNANTS IN COMMON' will require FIRB approval and any stamp duty savings are negated (e.g 90% you 10% wife). On a 500k purchase ((500/2)*7%) is about $17,500.

    All four of those lenders will use 100% of her AUD income. They are also vastly better than other lenders such as ANZ/NAB that will cap VISA 820 (temporary) at 70% LVR.

    have had success with getting Bank of Melbourne to accept the Australian borrower as sole part on title. This completely avoided stamp duty and as long as it is an owner-occupier you can change it back once she becomes a citizen (stamp-duty free). CBA/BWest will not do this structure when a foreign citizen is involved.

    Hope that helps.

    Sam

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  zDave on 03/09/2017 - 16:32

  What fees do you charge people taking this offer?
  Is this offer here classified as a 'credit assistance'?
  When I contacted Naritas, I have been told to sign a 'credit assistance' document that says:

  'Fees​ ​and​ ​charges
  Fees payable for the provision of credit assistance
  We charge a fee for providing credit assistance. More detail about those fees will be set out in a quote we
  will give to you before we provide you with credit assistance.'

  This is in addition to the commission Naritas receives from the bank, which is listed here in the same document under 'Commissions'

  'Commissions
  Commissions we receive from our licensee
  Naritas has appointed our broker group as its agent to receive commissions from lenders and lessors and to
  pay us commission in relation to loan contracts or leases for which we act as a credit representative and
  provide credit assistance. The total amount of commission we may receive in relation to your loan or lease
  may vary depending on the lender or lessor, the term, the features, the amount of the loan or lease you
  ultimately choose and the amount and timing of the repayments that you make.'

  • 

    Marketingnaritas @ Naritas Finance on 03/09/2017 - 17:26

    -1

    Hi zDave, many thanks for the great questions :)

    When I contacted Naritas, I have been told to sign a 'credit assistance' document that says

    Under the NCCP Act a finance broker must provide a consumer a Credit Guide which is the document you are referring to. If a finance broker does not provide you such a document and ensure you have taken the time to read it they are acting in contravention of the NCCP Act and such a practice would be considered a red flag for the way they handle consumer enquiries.

    What fees do you charge people taking this offer?
    Is this offer here classified as a 'credit assistance'?

    Under the NCCP Act any finance broker who wishes to reserve the right to pass on a clawback fee must make mention of this before an application is lodged. This is why we take extensive steps to draw attention to fees such as various stages of the enquiry process (including on our website -> in the Credit Guide -> Overview -> Quote). The commercial reality is that we have such provisions in place to limit the scope of abuse of our offers and allow us to reward loyal customers and to help people looking to the make the switch to using our firm.

    With respect to other fees in relation to this offer. We don’t charge any additional fees. Furthermore, any fees from the lender will always be discussed upfront and in writing.

    With respect to whether this offer is considered “Credit Assistance” - Yes. As finance brokers, credit assistance is precisely what we provide/do on a daily basis ;)

    Hope this helps :)

    • 

      zDave on 03/09/2017 - 17:43

      -1

      your answer is not specific. You say 'Under the NCCP Act any finance broker who wishes to reserve the right to pass on a clawback fee must make mention of this'

      Sorry, I am not sure you answered my question.

      Why do you have wording like:

      'Fees​ ​and​ ​charges
      Fees payable for the provision of credit assistance
      We charge a fee for providing credit assistance. More detail about those fees will be set out in a quote we
      will give to you before we provide you with credit assistance'

      Why don't you be transparent and say we will pass on a clawback fee? Infact, you are not saying that you will pass a clawback fee, you are saying that I agree to pay you 'fees'.

      Let me ask you the question again:

      What are the fees payable to Naritas for the provision of your services?

      • 

        Marketingnaritas @ Naritas Finance on 03/09/2017 - 17:49

        Why don't you be transparent and say we will pass on a clawback fee?

        Because there may be scenarios where we do not pass this on.

        Given that this is a general purpose document designed to handle thousands of loan products and a nearly infinite variety of scenarios, higher specificity would generate an unworkably large document.

        If you wished to have a more specific discussion about your concerns your allocated credit adviser would definitely be able to be of assistance.

• 

  tunzafun001 on 03/09/2017 - 16:43

  What's to stop someone from applying for an investment property as an owner loan? Currently vacant, can get mail sent there?

  • 

    Marketingnaritas @ Naritas Finance on 03/09/2017 - 17:37

    What's to stop someone from applying for an investment property as an owner loan?

    hahaha you're obviously a person who likes to look at all the angles ;)

    A couple of general thoughts:

    1. If the situation was more complicated than a mere desire misleading the lender to get a good price, then a really detailed examination of the scenario needs to be done to ensure compliance. We actually published an article on this here.
    2. If the intent of doing this was to mislead the lender and lending regulators, then we are talking about a scenario that may cause legal, financial or credit profile harm to the applicant (in addition to being in contravention of our professional ethics and licencing). As such, this is not an application scenario we are looking to attract or encourage -and, as such, is not something we feel comfortable on commenting on further.

    Hope this helps.

• 

  Cheemeister on 03/09/2017 - 21:38

  +1

  A general, noobie question about variable interest rates - For the long term, what does it mean to sign up on this deal at 3.65%? The bank can and will change the interest rate however they choose, right? If I get a loan at Citibank at 3.65% and Tom gets a loan at CBA at 4%, might I be paying 4.2% next month and Tom be paying 3.8%? Or is the rate 'pegged' to something? Sorry, I really have no idea how this works :)

  • 

    jace88 on 04/09/2017 - 23:04

    Yes. Banks can change their SVR anytime and they don't necessarily move in line with one another or the RBA cash rates.

    • 

      Cheemeister on 05/09/2017 - 20:12

      So, how do financially astute Ozbargainers deal with this? Do you do lots of research, find the best deal at the time when you get your loan, then chat with your broker / do more research every x months to see if you're still getting the best deal? And if not, do you refinance?

      I think I got a very competitive deal 3 years ago, and didn't think about it until now. Now I think I could be saving $100 a month by changing. I'll call my bank (Citibank) to see if they'll match this rate, otherwise I suppose I should refinance ASAP.

• 

  jace88 on 04/09/2017 - 23:03

  Thanks for the info. I'm currently waiting for my preapproval from Citi so wonder if they will at least match the interest rates.

• 

  addicted on 05/09/2017 - 12:54

  Hi Rep,

  I had a question on this deal. I was tempted to go for this offer, however, wanted to understand the product a little bit. I have to sell my current home and upgrade to a new one and will be doing a "simultaneous settlement". Would the Citi systems be able to provide that?
  Also, how is the product in terms of switching to interest only for some months only and also if there be need for a repayment holiday?

  I am currently with ANZ and they are good in these conditions.

  Thanks

  • 

    Marketingnaritas @ Naritas Finance on 05/09/2017 - 13:23

    +1

    Many thanks for the great questions :)

    I have to sell my current home and upgrade to a new one and will be doing a "simultaneous settlement". Would the Citi systems be able to provide that?

    The Citi systems are definitely capable of it. In our experience, however, factors such as the quality of your legal adviser and credit adviser (or bank allocated account manager if you go direct) are equally as important to this process. Why? Simultaneous settlements carry the risk of penalties for delay in settlement - if you are upgrading home, those penalties can be larger for you than the person buying the property you are selling. As such, there is a large amount of pro-active project management that goes into ensuring all of the stakeholders are well co-ordinated. Our team has direct experience in handling a large number of these transactions. In fact, by virtue of where we are located in Australia, people selling one multi-million dollar home to buy another one hardly ever wish to do bridging finance due to the extreme expense of capitalising interest on such large sums during the bridged period. As such, 9/10 times they will opt for simultaneous settlement arrangements.

    Also, how is the product in terms of switching to interest only for some months only and also if there be need for a repayment holiday?

    Interest only switching is not a feature we are seeing readily granted by Citi nor ANZ without cost or complication. So, 'no', we would not suggest that this is a product feature of this promotion. Similarly, Repayment Pause or a loan repayment holiday is not a commonly available feature associated with this promotion.

    With respect to Repayment Pause functionality at ANZ, speaking as long term ANZ introducers, we think it has a tendency to be a feature whose value is oversold to potential borrowers. Why? In 15 years of business we have never seen an applicant that was approved for it ultimately use it vis a vis people who need it don't get approved and the conditions attached to it make it relatively difficult as a path to manage cash flow compared to alternatives. The extract regarding this feature has been pasted below for reference:

    1. REPAYMENT HOLIDAY (EXCLUDES ANZ PERSONAL LOANS
       AND FULLY DRAWN ADVANCES)
       The Repayment Holiday facility allows for repayments to your loan to be suspended for
       three months. Approval of a Repayment Holiday is at the discretion of ANZ and subject
       to conditions including the following:
       • a minimum of two years Principal and Interest repayments must have been made to
       your loan (from the date your loan was fully drawn down or renegotiated);
       • a maximum of one Repayment Holiday can be made every two years;
       • there must be no current repayment arrears or history of repayment arrears in the last
       two years on your loan;
       • any undrawn redraw amount which is the greater of $2000 or one repayment must be
       used before applying for a Repayment Holiday;
       • interest on your loan will continue to accrue during the period in which your
       Repayment Holiday applies; and
       • your loan repayment amount may increase from the date your regular repayments
       restart or you may elect to repay the Repayment Holiday in a lump sum at the end of
       the Repayment Holiday period so that your loan is repaid within its original term.
       ANZ may impose any other conditions on its approval of a Repayment Holiday as
       notified by ANZ to the account holder(s).
       This facility does not apply to ANZ Personal Loans and Fully Drawn Advances.

    As a general point to note (this may not apply to you @addicted and this is not credit advice), practically every loan to consumers under the NCCP Act provide financial hardship provisions whereby if you desperately need to alter your repayment pattern to manage the loan, you are entitled to ask for this to occur. The major difference being that their can be flow on effects to your credit profile when you use hardship protections. Such effects may not necessarily occur by using an in-built loan feature like what ANZ is offering.

    Hope this helps.

    • 

      addicted on 05/09/2017 - 17:05

      +1

      great answer Andrew, looks like I need to hire you guys as my mortgage broker :). As of now I am directly dealing with bank.

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  arrahman052 on 05/09/2017 - 13:25

  Just wondering do you have any plan for land package?

• 

  Nppp2 on 05/09/2017 - 22:03

  Just looked at this offer and want ur opinion if u deal with Queenslanders credit union?

  www.queenslanders.com.au/fixed-special

  No fees and 1k cash back.
  100% offset attached to fixed rate loan of 3.78%.

  • 

    Marketingnaritas @ Naritas Finance on 06/09/2017 - 00:04

    Just looked at this offer and want ur opinion if u deal with Queenslanders credit union?

    Queenslanders CU is a small regional CU that is not on our lender panel. As such, we're not in a position to comment expertly on their products or offers.

    No fees and 1k cash back.
    100% offset attached to fixed rate loan of 3.78%.

    From a brief analysis (not credit advice merely for discussion purposes) on the cost of maintaining a $500,000 loan (assuming rightly/wrongly that all rates
    quoted today remain constant) over 36 months - we can see that our competing offers such as this Easternculture-Citi promo and NPBS could come out ahead (even before we take into account our larger rebates of $1500 and $2000 as compared to $1000 at QLD CU). At larger loan sizes, one would suspect ceteris paribus for NPBS to pull ahead further on cost due to its lower fixed rate (possibly the same could be said for Citi - but again, one has to assume a variable rate is staying the same).

    One then has to look at qualitative factors:

    • Citibank is a global bank. This promotional offer includes a Platinum Credit card with rewards, CitiDining program, CitiPlus transaction account (that is quite well reviewed by the Ozb community by and large) and the use of advanced banking features such as Samsung Pay.
    • Newcastle Permanent is a 110 year old building society, offers free rate lock and is one of the most well awarded lenders on the Australian mortgage market.
    • If you use Naritas to help you arrange your finance, you get our expert team to assist and support you both through the application process and for the life of the loan.

    Hope this helps.

    • 

      Nppp2 on 06/09/2017 - 13:09

      Thanks for the detail response. Do u have similar product which offers 3 year fixed rate and 100% offset attached to fixed rate loan? I only have 350k loan so annual fees adds up over .10% to loan rate.

      • 

        Marketingnaritas @ Naritas Finance on 06/09/2017 - 15:31

        Thanks for the detail response

        You're most welcome :)

        Do u have similar product which offers 3 year fixed rate and 100% offset attached to fixed rate loan?

        We do have a number of such products, lenders on our panel who offer this kind of functionality on select products within their range including Bank Australia (in fact, with a similar rate and rebate on a 2 year fixed), Adelaide Bank and Auswide Bank (amongst a host of other smaller brand name lenders).

        That said, fixed rates with in-built 100% offset accounts are actually a very niche product. As such, you often find yourself quite limited in terms of options. Most borrowers, depending on their specific needs, typically opt to have a small split of variable (say $20-50K) and the remainder being fixed. That way they can go with a much broader set of lenders whilst still enjoying both the certainty of a fixed rate and having 100% offset functionality.

        I only have 350k loan so annual fees adds up over .10% to loan rate.

        Your concern about fees is completely reasonable, especially at (comparatively) smaller loan sizes, they can become relatively more important to the value proposition of a credit/mortgage solution.

        There are various arguments for and against going fixed to minimise cost. In our general opinion, one's time is valuable and so too can be certainty of repayment, so a fixed solution can make sense if you do not wish to be closely monitoring your mortgage.

        If you'd be more concerned about fees and rate at a $350,000 loan size than spending time evaluating alternatives and repayment certainty, an offer like this one has proved to be quite popular in that space because it facilitates the borrower switching every 12 months or so if they feel they can get better mortgage offers elsewhere (and, as a part of our service, we can assist with review/transition if that was something important to you). It also has no annual fee, an offset account and a competitive interest rate from an ADI (bank) lender.

        If you wanted to get some further input and a quote on your specific scenario please complete the form located here and select "Provide detailed information for a quote" as it would be our pleasure to assist.

        Hope this helps.

• 

  tom1 on 07/09/2017 - 15:19

  If someone already have mortgage with Citibank slightly higher are still eligible for this deal?

• 

  homersyd on 11/09/2017 - 14:31

  Hi @Naritas

  Is the cashback per loan? so if I have 2 loans I can get $2000 per loan?

  thanks

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