Citigroup is set to limit overseas mortgage lending to elite high-net-worth clients with minimum deposits or investments of $250,000 (£205,150) because of concerns about its capacity to handle the number of applications after the withdrawal of most other major Australian banks.
Citi, which last year banned key Asian currencies from buying Australian real estate, has told mortgage brokers and other business partners the ban applies immediately. It was one of the few remaining lenders offering mortgages to overseas buyers.
“To maintain a balanced portfolio, and to ensure we can maintain adequate loan processing times, Citi will now only offer overseas loans to Citi’s existing and prospective Citigold clients,” Matt Wood, head of mortgages’ distribution, has said in a letter to clients.