Citibank Mortgage Power Loan

Features

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.

Who is the Citibank Mortgage Power Loan good for?

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.

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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.

Citibank Mortgage Power Loan Options

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.

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More details

Variable Rates from

6.04%

Advertised rate

6.22%

Comparison rate
Pros
  • Revolving line of credit.
  • Extra repayments and redraw facility.
  • Loan split available.
Cons
  • Very high variable interest rate.
  • Moderate to moderately high establishment fee.
  • Monthly fees.
Eligibility

Must be able to provide proof of income.

Must be over 18 years of age.

Must meet serviceability criteria.

Suitable For
  • First Home Buyers
  • Investors
  • Refinancers
  • Line of Credit Loans
Fees
  • Estimated upfront fees: $649.00
  • Discharge fees: $350
  • Ongoing fees: $12 monthly

There is a moderately-high estimated upfront cost for establishing the Mortgage Power Loan as well as a moderate discharge fee at the end of your loan term.

There is also an average monthly fee charged by this loan, however there is no penalty fee for making early repayments and no fee for use of the redraw facility.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About Citi

Citibank, a part of Citigroup, is one of the largest international banks in Australia, being the first international bank to gain a banking license in the country.

Offering services across a wide range of financial products and sectors, Citibank has branches and ATMs throughout Australia and the option to bank online.

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