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Citi – Great policy niches

Citi currently has some great policies. We summarise some of the main ones below that might be of interest:

Interest rate is determined by security not purpose

  • For cross-collateralized securities:
    • No investment rate loading up to the loan amount equal to the value of owner-occupied property
    • Investment rate loading applies to residual splits/amount and to both fixed and variable rates

85% no mortgage insurance:

Applicant conditions:

  • Satisfactory Veda scores apply for all applicants
  • No blemish historical conduct on all accounts
  • Applicant must be an Australian Citizen or permanent resident
  • All security providers need to be borrowers and mortgagors
  • A minimum PAYG / Self Employed “Qualifying Income” per application (excluding rental income) of $180,000 per annum (only applies to Sydney Zone 1A securities)

Security conditions:

  • Security must be located in Citi Zone 1A or Zone 1B area (Major Metro)
  • No new units, rural residential, construction loans or vacant land are permitted
  • Maximum one property per development.
  • Any adverse comments in the valuation report requires Risk Management consent and approval to accept the security under this policy

Loan conditions:

  • Min loan amount $200k per security property
  • Maximum per security loan amount is $1,000,000 in Zone 1A, Sydney and Melbourne, and $800,000 in Zone 1B
  • Max loan exposure with Citibank not to exceed $1.5 million
  • 20bps margin applied to all variable rate and fixed rate if repayment is principle and interest
  • 40 bps margin applied to all variable rate and fixed rate if repayment is Interest only
  • Minimum $20,000 on variable rate (cannot be 100% fixed)
  • No Cash Out, or Debt Consolidation (refinance of mortgage-based debts only) – Citibank to control disbursement of all funds at settlement
  • For variations (after six months with good conduct history ), cash out restriction does not apply

Lite Doc Requirements:

  • Valid ABN required for minimum 24 months
  • Business Income Documentation:
    • 12 months profit and loss statements (PandL) taken from management accounts of business (MYOB) with an end date no more than 6 months prior to application date, must be signed by all applicants/ guarantors
    • Business Activity Statements (BAS) covering all four quarters of the PandL above, plus any subsequent BAS statements
    • The most recent year of tax returns as per the Standard Documentation Requirements for self-employed applicants, along with an ATO Notice of Assessment
  • Group Certificates for all wages paid to Directors
  • Evidence of any other income, (spouses wages, rental statement, evidence of investment, interest received or dividend income)
  • Completely clean credit history on all applicants and passes Veda score