This was posted 7 years 3 months 21 days ago, and might be an out-dated deal.

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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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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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easternculture on 02/09/2017 - 16:44 naritas.com.au (1998 clicks)
Last edited 02/09/2017 - 23:52
Easternculture-Citi

This is a negotiated deal that took a few weeks to finalize and believe me when I say you probably wont find a better deal with a bonus.

Andrew from Naritas finance has agreed to top up the $1500 Woolworths GC bonus to $2000 with the first $1500 GC sent on settlement of loan and a further $500 gift card after you have held the loan for 36 months.

To qualify for the bonus $500 GC, you would have to mention promo code Easternculture-Citi when applying

Product Repayment type Rate Comparison Rate
Basic Variable Home Loan P&I 3.63%p.a. 3.68%p.a.
Mortgage Plus Offset Home Loan P&I 3.63%p.a. 4.03%p.a.

Fees & charges:

Product Application Fee Settlement Fee Annual Fee Exit fee (payable at loan diacharge
Basic $399 $250 $0 $350
Mortgage Plus $0 $250 $350 $350

Fee schedule available here

More info on Loan here

Any questions feel free to ask and ill forward them to Andrew.

Naritas Finance ACL Number: 441723

Enjoy

Financial Home Loan Loan

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closed Comments

  • [Deactivated] on 02/09/2017 - 17:04

    Not bad for variable rate. Any deals on fixed rate? Coz variable rates can change at any time.

    • easternculture on 02/09/2017 - 17:17
      +9

      This is my first financial negotiated deal so hopefully more deals will come from this one based on comments 😀😀

    • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 17:19
      +3

      Any deals on fixed rate? Coz variable rates can change at any time.

      Thanks for the question :)

      If you were looking for the certainty of a fixed rate we reckon this offer here is pretty sharp (with headline rates for fixed products commencing at 3.64%p.a.).

      The added bonus with that offer is that you have free rate lock for 60 days at conditional approval - most lenders wish to charge a fee for that kind of functionality (typically $500+ or 0.10% of loan amount or more).

      Hope this helps.

      • virhlpool on 02/09/2017 - 19:20

        How are these loans rated for equity pull/ cashouts? As generous as CBA/ ANZ? I understand that generous and easy cashout is one of the main reasons investmemt property customers go to such banks despite their higher interest rates.

        For example, I am a loyal ING customer for regular banking but would not go to them for investmemt property loans for these reasons.

        • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 19:40
          +1

          How are these loans rated for equity pull/ cashouts? As generous as CBA/ ANZ? I

          Thanks for the really insightful question Virhlpool.

          This offer is definitely not suited to people with a primary focus on cash out/equity release.

          Citibank defines cash out as a refinance scenario when more than 5% of the loan amount (rounded to the next $1,000) is not disbursed:
          a) Directly to a mortgage lender for the refinance of an existing mortgage debt associated with a property that Citibank is taking as security, or
          b) Directly to a vendor/ third parties associated with the purchase of each property that Citibank is taking as security.
          NB: The refinancing of a business loan is classified as cash out.

          As such, we reckon we'd have more competitive offers than this one for an applicant with such requirements.

          Hope this helps.

    • RDY4WR on 03/09/2017 - 10:33

      Are you affiliated with Citibank? How do you satisfy their ID verifications for interstate borrowers?

      For transparency, what is the commission citi offer you? My understanding is a min upfront of .0065% so x 500k = $3,250

      Again, what if I refinance after getting the $1500 of cards?

      Looking at this and nabs $1440 actual cash back offer.

      • incipient on 03/09/2017 - 10:50
        +1

        Depending on how much your exit fees from your previous loan are, you can easily spend $1000 in the changeover. Not saying it's a good/bad deal interest rate wise, but as a quick cash grab you won't come out with much.

      • Marketing[Deactivated] @ Naritas Finance on 03/09/2017 - 11:26
        +6

        Thanks for the questions :)

        Are you affiliated with Citibank?

        We are an accredited introducer to Citibank. We hold Australian Credit Licence 441723.

        How do you satisfy their ID verifications for interstate borrowers?

        We have mobile credit representatives and there are processes and alternatives in place to manage the requisite compliance procedures to ensure proper identification of applicants is always completed.

        For transparency, what is the commission citi offer you?

        Taken directly from the commission section for Citibank introducers:
        Upfront commission as per Commission Scheme ranking:
        1 - 0.715%
        2 - 0.605%
        3 - 0.55%
        4 - 0.33%

        This means in the best case scenario we are paid 0.715% (NB: there are fees paid to aggregators, GST, etc that also impact that figure).

        Again, what if I refinance after getting the $1500 of cards?

        This offer is definitely not suited to a borrower seeking a rebate then an immediate exit. Why? Primarily for three reasons:

        1. As other users have pointed out, there are state based costs, admin/legal, fees, etc on entry and exit. This means that the process is rarely cost effective when done in light of those expenses.
        2. Multiple applications for mortgage credit and/or refinances in an under a year will typically have a noticeable negative effect on your credit score. For a person with an already moderate (to lower average) credit score, this can be an important factor. If your credit score is extremely high, it may not be a major factor to you. For the majority of borrowers, in our experience, they don't wish to negatively affect their credit score for a net gain of a few hundred dollars.
        3. This offer is primarily oriented as a loyalty reward. Citibank charges Naritas a clawback fee for people who fully discharge their loan within 18 months. This fee would be passed on to you as the borrower in the event this occurred. If that was a major issue for you, we do have lenders that don't have such provisions built into their introducer agreements.

        Looking at this and nabs $1440 actual cash back offer.

        We also have NAB on our panel and that offer has been very popular with our clients. That said, if your intention was purely to chase the cash back, perhaps you may wish to deal with them directly.

        Hope this helps.

  • royale on 02/09/2017 - 17:05
    +2

    Any deal for investment property?

    • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 17:35
      +5

      Any deal for investment property?

      Thanks for the question, Royale :)

      We have some popular offers listed for investment lending here. NB: If the link doesn't open to the 'invest' tab - please click on it for pricing.

      In short, as you may be aware, investment lending at present is not flavour of the month with most lenders. As a consequence, we've noticed them become quite savvy with their product pricing to attract good customers vis a vis a huge gulf has opened up between the standard published rates and individually negotiated pricing for strong applications.

      As such, if you had a particular scenario you were evaluating we'd suggest you'd be best served by chasing ad hoc pricing - which is something we'd be glad to assist with. If you simply wanted a basic guide for comparison's sake, however, the pricing listed on the widget linked above should provide you a good starting point as to the general space that sharp lenders are competing at.

      Hope this helps.

  • PPrem on 02/09/2017 - 17:35

    Any condition on LVR?

    • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 17:41

      Any condition on LVR?

      Great question, PPrem :)

      Yes there are. Offer is valid for loans up to LVR 90% LVR plus LMI capitalisation.
      NB: Lenders Mortgage Insurance is applicable for loans with an LVR over 80%.

      Hope this helps.

      • plasmapuff on 02/09/2017 - 17:50
        +1

        Can you waive LMI for certain professions as per other banks?

        • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 18:49

          Can you waive LMI for certain professions as per other banks?

          Great question Plasmapuff. In our experience, CitiGold (a division of Citibank oriented to HNWI) is willing to consider some pretty special incentives (possibly like an LMI waiver) for borrowers that can meet their entry requirements (think along the lines of minimum $150k p.a. earnings - but more likely to be well in excess of $250k+p.a. and a minimum of $250,000 invested with Citibank outside of the mortgage).

          That being said, we do have some lenders that have LMI waivers with lower hurdles to meet, some details on this is available here.

          NB: Usually the best approach for successful professionals is to have a chat about their specific financial circumstances with one of our credit advisers. The simple fact is that most offers you see advertised are aimed more squarely at the middle of the bell curve - so there is a good chance you may be able to get a better offer than what is advertised due to your unique qualifications and financial wealth.

          Hope this helps.

  • dasher86 on 02/09/2017 - 17:37
    -1

    Application fee? :/

    • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 17:55

      Application fee?

      Thanks for the question, dasher86

      The fees applicable to set up the new loan would depend on the product you select.

      Basic: $399 application fee, $250 settlement fee, $0 annual & $350 exit fee (payable at loan discharge).
      Mortgage Plus: $0 application fee, $250 settlement fee, $350 annual fee & $350 exit fee (payable at loan discharge).

      In our experience with people using this offer, the $1500 upfront GC is usually more than sufficient to offset the costs of establishing the loan or switching out of another mainstream lender. That said, you may wish to use a calculator such as this one or contact one of our credit advisers to run the numbers to help you determine whether it is worth making a move.

      Hope this helps.

  • jubified on 02/09/2017 - 17:39
    +2

    Loans.com.au has 3.74 comparison rate for offset provided its <80% lvr. No annual fee unlike citibank.

    I've never used them but there are fairly positive reviews on whirlpool.

    • em on 02/09/2017 - 17:42
      +6

      Loans.com.au isn't a bank though, so doesn't offer an offset account that is protected by the government guarantee on deposits.

      • jubified on 02/09/2017 - 18:08
        +1

        Ah thats good to know.

        Source is anyone is interested:

        https://www.fcs.gov.au/which-adis-are-covered

        • Wally on 02/09/2017 - 18:37

          note: 250k limit per account

        • brucebruce on 02/09/2017 - 21:24

          Thanks for the link, I thought loans.com.au is Indue Limited which is listed towards the bottom of the link… Can anyone confirm this?

      • The Wololo Wombat on 02/09/2017 - 18:17

        You want an unprotected bank for a loan right? If the bank goes belly up, you are sweet! Who cares about a few 1000 in an offset if you never have to pay the loan back?

        • Wally on 02/09/2017 - 18:45
          +3

          The appointed liquidators will have a shock waiting for you, methinks

        • equitygame on 02/09/2017 - 18:50
          +1

          Where on earth did you get that idea?
          The banks have already sold your loan to the wholesale markets. You still end up paying the investors, institutions, pension funds and super funds who bought up the mortgage backed securities that your loan was packaged in…

        • nismo on 02/09/2017 - 19:23

          @kostanza:
          I thought the wombat had a hint of sarcasm in there, no?

        • equitygame on 02/09/2017 - 20:25

          @nismo: Yeah you're probably right. I cheaped out on my sarcasm detector…

        • Wally on 02/09/2017 - 23:55

          @kostanza

          nuh, dat wombat got mange real bad!

      • haliloo on 02/09/2017 - 18:19

        I think they also have the offset option though I didn't find them trustworthy. I talked to them a couple of weeks ago and they offered me rates which were different from what they advertise.

      • zDave on 03/09/2017 - 14:24

        Does loans.com.au offer a redraw facility, unconditional?
        If they do that is effectively your offset account.

        • em on 03/09/2017 - 15:16

          Depends how you want to use it. I'd rather have an offset account that I can use as a transaction account, something that ING and Bankwest offer. But then I'd have a decent amount of money in an offset account, so it would work for someone in my position but not necessarily for everyone.

    • stefanko on 10/09/2017 - 06:59

      word of warning - my gf had 2 loans on 2 properties over the last 5yrs with loans.com and she always started out with a great rate however every 6 month or so loans.com didnt pass the whole rate drop of 0.25 but only something like 0.15 and after 1-2 years she still had an OK rate but not a great one anymore. It happened several times on both loans so I am not judging by 1 or 2 occurrences :)

      • SaberX on 22/09/2017 - 03:22

        that's my biggest worried. bankwest is going to be shafting owner occupiers with interest only loans (myself) with the whoel APRA crackdown on banks and while there are plenty of sub 4% options, my worry is playing cat and mouse - you shift to something cheaper then get whacked with rises or rates not being passes on. so basically bait and switch you in.

        Anyone care to share any providers that are consistently top of the game over a couple of years?

        I thinka ll i want is an offset account and preferably interest only owner occupier if possible. BUt i doubt one coudl get that at sub 4% rates these days? Not to mention they probably require less than 80% LVR? The other problem about switching - paid LMI on my original loan so unless ig etbelow 80% i'll be repaying lmi.

        STupidest thing ever how you could pay insurance once and it isn't transferable. Needs to be fixed.

        • dcep on 25/09/2017 - 13:13

          can you transfer your life insurance to someone else ?

        • SaberX on 27/09/2017 - 02:54

          @phunkydude:

          not sure what your on about but LMI is not life insurance if that's what your referring to? it's lenders mortgage insurance.

  • burningrage on 02/09/2017 - 17:40
    +3

    Well done OP.

  • 51ngh on 02/09/2017 - 17:49

    Aarghhh!
    Just applied last week for a BankWest Equaliser home loan at 3.72% …..
    I believe I come out on top if you compare CR as I only pay $120 a week for the offset account, as opposed to $350

    Hey OP, can you tell why does Citi have an exit fee?.
    I thought there shouldn't be any fee on a variable loan payout/refinance.

    • ahara on 02/09/2017 - 17:58
      +2

      Almost all banks have a 'hidden exit fee', which in essence is for their lawyer or conveyancer to exchange the title of deed of your property.

      It's more an administration type of fee and not an exit fee as such.

      Personally, have seen very few institutions that don't have this 'exit fee'.

    • serpserpserp on 02/09/2017 - 21:27
      +1

      A week? crikey.

    • SaberX on 22/09/2017 - 03:23

      i hope you meant $120 a year for the offset account.

      • 51ngh on 22/09/2017 - 04:40

        lol, yes.
        $120 a year.

  • dy4me on 02/09/2017 - 17:58
    +3

    Correct me if I am wrong but didnt the government in 2011 put legislation into place to end exit fees?

    https://www.domain.com.au/advice/do-you-have-to-pay-an-exit-…

    • ShortyX on 03/09/2017 - 08:30

      I think it's a discharge fee, not an early exit fee.

      Why didn't the rep answer this question?

      • Marketing[Deactivated] @ Naritas Finance on 03/09/2017 - 08:41
        +2

        Correct me if I am wrong but didnt the government in 2011 put legislation into place to end exit fees?

        Many thanks for the great question and sincere apologies for not replying sooner - this rush of questions hit us totally unexpectedly on a Saturday night of all times :)

        So to answer your question:

        1. Early exit penalties such as deferred establishment fees were barred for variable loans. Reasonable administrative charges upon loan exit were not barred. The latter are a common theme amongst nearly all lenders.
        2. Fixed rate loans will nearly always have economic break cost provisions and were not eliminated by changes to end exit fees. These economic break costs can range from being under $1000 to being many 10s of thousands of dollars. The specific charge your existing lender is obligated to provide you at the time you request a payout figure/indication of break cost. It will fluctuate periodically (even daily depending on market movements). Put simply, fixed rate loans should usually not be considered if there is a likelihood of needing to break the fixed term.
        3. This promotion relates to a variable loan and does not have the economic break costs referenced in point 2. It does, however, have the usual reasonable administrative charges that most loans carry. That fee is quoted by Citibank as being $350.

        Hope this helps.

  • ttkc on 02/09/2017 - 18:02
    +1

    I am looking to refinance- can I get the same rates/cash back?

    • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 18:24

      I am looking to refinance- can I get the same rates/cash back?

      We'd be happy to see what we can do to assist. We do have a general offer available to most refinance scenarios listed here. Alternatively, if you were looking for our best offer customised to your specific scenario you'd be best served by clicking here and selecting "Provide detailed information for a quote".

      NB: Please include Easternculture as the reference :)

      • spackbace on 02/09/2017 - 18:52
        -3

        Please include Easternculture as the reference

        Why?

        • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 19:05
          +1

          So that we may know which lender/offer their enquiry related to and to assist with our business analytics.

        • OzBragain on 02/09/2017 - 19:09

          How else can they tack commission

        • 51ngh on 02/09/2017 - 19:29

          @OzBragain: nothing wrong with it. After all no one does the leg work for free, agree?

        • spackbace on 02/09/2017 - 19:34

          @51ngh:

          That would mean OP marks themselves as a referrer if there's a kickback.

          Considering the company runs a $250 referral program, which is off the table for this deal…

        • tajid on 02/09/2017 - 19:41

          Normally if we refer people to Naritas and they settle, we get $50 wish so I'd think this will be something similar.

        • OzBragain on 03/09/2017 - 06:44
          +2

          @51ngh:

          nothing wrong with it. After all no one does the leg work for free, agree?

          Nothing wrong with making money from doing the leg work but it's generally expected that the poster informs members if they're getting anything for themselves out of a deal.

          The whole dynamic of this site changed when people started negotiating personalised 'deals' for personal gain.

          Can't say for sure this is the case here but I'd be surprised if there wasn't some kind of kickback for the OP. Again, no harm if is declared.

        • Dont Care on 20/09/2017 - 21:33

          @OzBragain: so why dont u go find best rate and post

      • 51ngh on 02/09/2017 - 19:28

        I had thought these rates would be valid for re-finance as well if other conditions are met.
        After all, there is nothing which says anything like 'No refinance' or 'first time loans only'.
        Generally when a bank advertises variable rates, they are applicable for refinance as well. But I might be wrong…

        • Marketing[Deactivated] @ Naritas Finance on 03/09/2017 - 09:21
          +1

          I had thought these rates would be valid for re-finance as well if other conditions are met.
          After all, there is nothing which says anything like 'No refinance' or 'first time loans only'.
          Generally when a bank advertises variable rates, they are applicable for refinance as well. But I might be wrong…

          Many thanks 51ngh for making input. In this case, some of the conditions particular to this promotion from Citibank include:

          1. Offer is not available for Pre- Approvals. Which basically means that the offer is generally more suited to applicants purchasing who have already entered into a purchase agreement (signed a contract of sale) and for people who are refinancing.
          2. Applications must settle within 90 days of submission to be eligible for the promotional rate. On re-approval the loan rate will revert to carded rate applicable at that time, in accordance with the special condition. Which generally means that applicants with extended settlement periods of 90 days or more are not well suited to this offer at a basic level.

          NB: Please note that this is not intended as credit advice and is merely a general comment on the product features The usual financial/credit advice disclaimers apply :)

          Hope this helps.

  • mr_asstight on 02/09/2017 - 18:14
    -1

    Explain acronyms in the title please

  • Godric on 02/09/2017 - 18:14
    +1

    Slightly off-topic, does anyone else Citibank app no longer open>?

    • Kikkoman56 on 02/09/2017 - 22:59

      Mine doesn't… Don't know what's happened. Any chance your phone was or is rooted? Mine was but certain apps still pick up on it and refuse to run so I have a suspicion it might be that.

      • Godric on 02/09/2017 - 23:01

        Nope fresh S8, was working few weeks ago but now nothing

        • Kikkoman56 on 02/09/2017 - 23:05

          Yeah same sort of timeframe as me, very odd then… No idea what it could be.

  • haliloo on 02/09/2017 - 18:17

    So the difference between the two options is only the offest account?

    • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 18:29

      So the difference between the two options is only the offest account?

      That is correct. The Basic loan has redraw but does not offer an offset account. In our experience, the offset option has proved to be most popular as many applicants are happy to have the comfort of an ADI issued 100% offset account with the added bonus that the credit card options on offer from Citibank are quite appealing in that package.

      Hope this helps.

    • Almost Banned on 02/09/2017 - 18:52

      Plus the ongoing annual fee and the different set-up cost…

  • [Deactivated] on 02/09/2017 - 18:18
    +6

    Min 500k? So only for suckers in Syd or Melb :P

    • haliloo on 02/09/2017 - 18:21

      yeah that sucks

      • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 18:36

        For anyone concerned about the $500K minimum, we do have other offers that are more suited to borrowers in that $350,000-$499,999 space.
        In fact, this offer here has both sharp pricing and a rebate with a minimum loan size of only $350,000.

        Hope this helps.

        • haliloo on 02/09/2017 - 20:06

          what does this exactly mean? and is LVR < 80% for this?
          …loans must be refinanced to a Newcastle Permanent 2, 3, 4 or 5 year Fixed Rate Home Loan from another financial institution.*

        • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 20:23

          @haliloo:

          Thanks for the questions :)

          Answers below

          is LVR < 80% for this?

          Yes for the variable pricing discussed in that particular NPBS offer. HOWEVER, the fixed rate pricing applies to max LVR of 90%.

          what does this exactly mean?
          …loans must be refinanced to a Newcastle Permanent 2, 3, 4 or 5 year Fixed Rate Home Loan from another financial institution.*

          Rephrased it means:

          1. You need to select a fixed rate product to qualify for our rebate. That promotion is, in effect, one that we feel is best suited to people interested in a fixed rate or hyrbid solution.
          2. "from another financial institution" means that the rebate is not on offer to applicants wishing to do an internal refinance from one NPBS product to one of the products referenced in that offer.

          Hope this helps.

  • cheapfab on 02/09/2017 - 18:21

    Are the rates the same for interest only loans? Why do consumers always have to contact the various banks / non-banks for their various rates… just advertise and be transparent so I can compare !

    • Marketing[Deactivated] @ Naritas Finance on 03/09/2017 - 00:19

      Are the rates the same for interest only loans? Why do consumers always have to contact the various banks / non-banks for their various rates… just advertise and be transparent so I can compare !

      Funny you ask this question, we suspect many lenders got the shock of their corporate lives when P2P lenders (fintech entrants to lending) started to do mass price customisation well. Also, we have recently started to see much better data analytics being provided on applicants via the major credit reporting agencies and legislative changes such as positive credit reporting.

      The argument is, despite what you may think, a one size fits all approach is not necessarily the best thing for a stable financial system. So there are some merits that come along with the drawbacks of this new era of mass customisation of lender offers.

      Hope this helps.

  • illumination on 02/09/2017 - 18:26

    Hey rep (naritas)

    Would I be able to get a personalised quote on refinancing for an investment property?

    • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 18:40
      +1

      Would I be able to get a personalised quote on refinancing for an investment property?

      It would be our pleasure to assist with that. To get a personalised quote please refer here and select 'Provide detailed information for a quote". One of our credit advisers will respond promptly to you.

      NB: We are being hit by a bit of OzB tsunami of enquiries at present - so normally we can respond within a matter of under an hour, at present we're expecting to need a couple of hours to get back to everyone.

  • Maz78 on 02/09/2017 - 18:40
    +1

    I just got the same rate from my broker.. Haven't signed up yet though as I'm waiting to review the paperwork and I'm not sure if he has mentioned the fees. Won't have a GC included though, but then again my re-finance amount is significantly less than the $500k required for this deal..

  • manumu7 on 02/09/2017 - 18:40

    dont forget cash rewards

  • D6C1 on 02/09/2017 - 18:52

    I'm directed to Google when I click on "Go to deal"

    • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 19:45

      Hi D6C1, that's really disappointing to hear.

      Our website (like most financial sites) employs a range of security measures to deflect cyber attacks. Sometimes these measures can create false positives and send genuine people off to Google instead of to our web page. We've seen a number of these false positives occur for some people using AWS thin clients and VPNs, for example.

      If the problem persists, feel free to send us a PM via OzB.

      Hope this helps.

      • D6C1 on 03/09/2017 - 02:35

        Still happening. All good thanks champ

        • Marketing[Deactivated] @ Naritas Finance on 03/09/2017 - 09:49

          Still happening.

          We're super sorry you're experiencing this issue with our site and sincerely appreciate you taking the time to let us know of this false positive (which we will investigate using our Cloudflare rep and server admin).

          In the meanwhile, if you were interested in the offer our team are happy to either chat offline (our number is 1300558887 - which is staffed Mon-Fri for new enquiries) or, alternatively, we can call you back today if you send us a PM with your name and preferred contact number.

          If you'd like to have another chat with us online, perhaps send us a PM with your email address and we'll get one of our credit advisers to email you.

          Hope this helps.

  • T-man on 02/09/2017 - 19:02

    Is Citibank a conservative bank and stricter than the big 4? Can a self-employed like me apply for this deal? Thanks.

    • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 19:21

      Is Citibank a conservative bank and stricter than the big 4? Can a self-employed like me apply for this deal? Thanks.

      In our humble opinion, Citibank is not extremely strict in comparison to the big 4. Naturally, when they run a promotion and are flooded with applications they tend be to somewhat selective (as is the case with most lenders when this happens). So, in short, being self-employed shouldn't automatically disqualify you from this offer, however, Citibank would still be seeking applicants with at least an average credit score/credit profile.

  • ozberg on 02/09/2017 - 19:09

    Keen to understand how a 3.63%p.a. for the offset becomes a 4.03%p.a. comparison rate. Is that just factoring in the cost of the offset account?

    • T-man on 02/09/2017 - 19:12
      +1

      add the annual package fee of $350 to the life of your loan.

      • PuppieWayne on 02/09/2017 - 20:12
        +4

        Comparison is pointless.
        When you look at the fine writing - "comparison is rate based on $150,000 for 25 years" which is almost never how your loan is going to be.
        Kinda like your GPS telling you that you will reach your destination in 30min based on going at 60k/h with NO traffic.
        Best way, do your own calculation.. find out how much interest you will be charges per year between the two institutes then add in any fees and look at the net figures.

        • Appleboat on 02/09/2017 - 23:00

          Anyone got an app, online calculator or xls that covers off on all the tricks(differences) between banks to get a true comparison?

        • Marketing[Deactivated] @ Naritas Finance on 03/09/2017 - 00:10
          +1

          @Appleboat:

          Anyone got an app, online calculator or xls that covers off on all the tricks(differences) between banks to get a true comparison?

          Great question.

          Probably one of the better calculators that tries to customise the parameters that were set out for comparison rates in consumer credit is located here.

          Note that it still makes some assumptions that will make its use limited for a cost conscious borrower. These assumptions include:

          1. It does not factor in rebates.
          2. It assumes you will hold the loan for the full loan term.
          3. It does not take into account operational costs for the loan.

          Hope this helps.

        • tootski on 03/09/2017 - 14:49

          @naritas: Hi, how would your deal compare with an offset loan like this Link which has a slightly higher variable rate, but a much better comparison rate at 3.74% compared to your 4.03%. I guess short term yours would be a better deal with the $2k WW cards, but longer term, the other one might be better? Thanks

        • Marketing[Deactivated] @ Naritas Finance on 03/09/2017 - 16:04
          +1

          longer term, the other one might be better?

          Many thanks for the question, tonca :)

          In our general opinion (i.e. not credit advice), long term comparisons (i.e. comparisons made over more than a handful of years) for variable loans are futile due to the inherent nature of variable products. Why?:

          1. The RBA meets 11 times per year to decide the cash rate. All lenders adjust their variable pricing in response to RBA adjustments. Lenders do not, however, adjust their rates uniformly. In fact, only two lenders (example here) have variable products that have committed to doing this. As such, even over 3 years a lender has 33 distinct opportunities to adjust their variable pricing. As the years pile up, large gulfs often open up between lenders that started with similar pricing.
          2. Nearly all lenders build in the ability to change rates, fees, operational charges and terms of their variable loan contracts entirely at their own discretion. In other words, every business day (distinct of RBA movement) a lender can change pricing and costs of a variable loan. For example, many people assessing this promotion may have recently experienced large changes in their interest rate depending on the type of variable loan product they had/have and whether it was an interest only loan.
          3. Regulation will be a massive ‘x-factor’ in the next few years. Presently APRA ADIs have already adjusted pricing in response to requirements placed on them over the past 24 months regarding their need to dis-incentivise certain types of loans and meet higher stress test hurdles. Non-banks are only now in the process of negotiating how regulation for them might look. Many industry commentators feel that there is a high probability that further regulation will increase the cost of their lending, costs which may be ultimately passed on to borrowers.

          As such, if you were concerned about interest rate/fees ahead of qualitative objectives such as security of your funds in the attached offset account, transactional and card services on offer and customer support on offer from the lender and introducer, setting a strategy to review your loan cost/structure is probably the most pragmatic approach. In our experience, this usually takes the form of a restructure every 2-5 years. Alternatively, you may wish to have the certainty of a fixed rate loan, however, there are distinct pros and cons that fixed rate loans also bring to the table.

          Hope this helps.

        • tootski on 03/09/2017 - 16:58

          @naritas: Hi, thanks for the detailed reply. I agree there are many variables and to make long term comparisons would be difficult.

        • PuppieWayne on 03/09/2017 - 19:58
          +1

          @naritas:

          That's a pretty good comparison calculator. Much more flexible than those board comparison rares you see being advertised on banks.

        • Marketing[Deactivated] @ Naritas Finance on 04/09/2017 - 09:14

          @tonca:

          Hi, thanks for the detailed reply.

          You're most welcome and thank you again for the opportunity to discuss an important question.

          I agree there are many variables and to make long term comparisons would be difficult.

          Definitely a pervasive problem. In fact, so much so, that Treasurer Scott Morrison has asked the ACCC to review lender policy on variable rate pricing.

          In our humble opinion, unless massive changes occur (which presently looks unlikely), a smart consumer simply needs to accept that your standard 30 year mortgage is probably going to be most cost-effectively maintained with a strategy to re-evaluate (with a willingness to move if negotiations fail) every 2 to 5 years (dependent on their individual circumstances/stage of life).

          If that all sounds like too much hassle, perhaps a 'rate tracking' variable may be a solution. In our experience with these relatively new products, they seem to be sold at premium and aimed at borrowers seeking long term convenience over short term savings.

          Hope this helps.

  • Dr Cheapo on 02/09/2017 - 19:21
    +1

    Hi Naritas

    Will this be suitable for a construction loan with a drawdown process?

    Thanks op for the deal

    • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 21:05

      Will this be suitable for a construction loan with a drawdown process?

      Many thanks for the excellent question.

      Citibank will consider construction approvals. That being said, we've not had any written guidance from Citibank regarding construction for this promotion. As such, we cannot give you a reliable opinion tonight on their appetite for construction lending under this present promotion. Our instinct says it is unlikely to be available as we typically see appetites for streamlined/plain vanilla scenarios when promotional pricing is released. One of our credit advisers, however, would be able to get you an indication upfront and in writing if you wished to have a chat with them. You can do so via the form located here. Please make sure to include the promotional code so that you qualify for the bonus.

      In the meanwhile, we do publish a list of our most popular construction loan products here NB: If the widget doesn't open to construction loans please click on the 'construct' tab. You'll see that we have some lenders with similar pricing to this offer failing Citibank being reluctant to approve your construction loan.

      Hope this helps.

  • 51ngh on 02/09/2017 - 19:32

    So Naritas is a company like Mortgage House or Aussie which provides home loan to end consumer from a panel of banks/fin. institutions?
    Am I correct in this ?

    • Marketing[Deactivated] @ Naritas Finance on 02/09/2017 - 22:02

      So Naritas is a company like Mortgage House or Aussie which provides home loan to end consumer from a panel of banks/fin. institutions?
      Am I correct in this ?

      Many thanks for the question.

      Naritas Finance is a financial intermediary and Australian Credit Licence holder 441723. This means that we employ credit advisers, also known as mortgage and finance brokers. With respect to our lender panel, we have over 100 lenders/financial services providers on our lender panel (which roughly equates to about 175+ brands).

      Hope this helps :)

  • robbo135 on 02/09/2017 - 19:36

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

    • bozbargain on 02/09/2017 - 20:08

      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?

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