The main feature of the Mortgage Power Loan from Citibank is that it offers a revolving line of credit with a pre-approved limit. It is secured against the property.
The Citibank Mortgage Power Loan allows you to access the equity in your home through the same means as an everyday bank account, via ATMs, etc.
Borrowers are only charged interest on the money you withdraw.
The credit line is a preapproved amount that you can access at any time and there is no 100 per cent offset account offered by this home loan.
Repayments on this loan can be made daily, weekly, fortnightly or monthly. This loan can also be split and you can make interest-only repayments for a specific number of years. However, the variable rates offered by this loan are very high when compared with more traditional mortgages.
Extra repayments are allowed on this loan without any penalty fees and customers have the option to redraw these payments in the redraw facility.
And, if you choose to move to a new property, this loan is portable, but there is a fee for switching your loan to another property. Customers can also combine this home loan with other Citibank products.
This loan is good for people who know they will need to make big purchases while repaying their mortgage or would like to have the flexibility of being able to make investments.
This loan is also good for investors since interest-only repayments can be made for a specific period so your property’s equity can increase before you start making principal payments.
Since this home loan offers a revolving line of credit against your home equity, this gives you the ability to make investments or big purchases while making your mortgage repayments. You also have the ability to make interest-only repayments for a certain period as well as extra repayments, making this home loan an attractive offer if you know you will still have big purchases to make after purchasing your property.
However, this home loan has a very high variable interest rate, which might not be worth the offered benefits. It would be a good idea to look at your purchase priorities and see if having this revolving line of credit outweighs paying such a high rate as well as the involved fees.
The Mortgage Power Loan offered by Citibank has loans for owner-occupiers and investors. To find out more information about each, click the corresponding links below.