Citibank Australia offers a range of residential mortgages to Australian borrowers
Citibank Mortgages
March 10th, 2010
Citibank Australia offers a range of residential mortgages to Australian borrowers.
The Standard Mortgage is the mortgage that Citibank offers as a default. Within the standard mortgage there is the ability to get either a fixed rate or a variable rate. As with the other fixed rate loans there is a time limit on the fixed rage. There is also the ability to blend fixed and variable rates so as to limit but not totally eliminate the exposure to interest rate changes.
A standard mortgage on the variable rate has the ability to have a savings offset, which is the ability to have a savings account that can be offset against the mortgage balance, so reducing the interest. The interest is calculated daily, and so the effect of the offset is not delayed. Unlike overpaying the mortgage there are no redraw fees with this feature. It is possible to offset the mortgage to 100% of the variable element. This is not available against the fixed element of the loan.
The Basic Mortgage is a no frills mortgage. It does not offer many features although it does have one of Citibank’s lowest rates. The rate is variable, and there is no fixed rate alternative. There is also the ability to make extra repayments without any penalty.
A fixed rate mortgage is offered by Citibank. As the bank is assuming the risk if interest rates rise, it tends to be slightly higher than the variable rate loans and it tends to be a good mortgage for people who are worried about the rise in interest rates. Although it may not be an obvious solution for those on a tight budget, due to the cost, but it does mean that they will be significantly less vulnerable to a sharp rise in interest rates. The fixed rate will last for a period and then the mortgage will reset to a variable rate.
The Mortgage Power home loan is a revolving line of credit, which is a mix between a transaction account and a loan. This means that a home owner has the ability to release the equity in their home.
The Mortgage Plus account is an account which combines a mortgage with a payment card, in this case a Citibank Gold Visa Card, which means that payments can be made from the mortgage account. Most home loans are able to be included in this. This is far cheaper than running a stand alone credit.
There is a Self-Certified mortgage which is aimed at those who are self-employed and so find it hard to show documentation for a stated level of income.
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