| Media Release - 25-03-2002 |
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| Newsroom |
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| Citibank Launches Offset Mortgage |
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| Sydney March 25, 2002: Citibank has expanded its mortgage product range with the launch of a new Offset mortgage and an aggressive growth plan for the P&I (principal and interest) loans market. |
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| Citibank director of mortgages Moray McDonald said the renewed focus on the P & I market furthered Citibank's established profile as the leader for revolving lines of credit in the broker market. |
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| Citibank revolutionised the Australian mortgage market in 1985 with the introduction of a revolving line of credit mortgage. |
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| The Offset mortgage - a principal and interest home loan linked to a day-to-day savings account - allows borrowers to reduce the daily interest payable on their home loan. The reduction of the daily interest is achieved by offsetting the balance in the savings account against the outstanding balance in the home loan account. |
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| Its introduction follows extensive research highlighting the diverse financial needs of the mortgage customer. |
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| "Our research demonstrated that mortgage customers are looking for a way to manage their finances and at the same time pay off their loan sooner," Mr McDonald said. |
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The typical Offset mortgage holder has a number of similar characteristics:
- 49% are aged between 35 - 49 years;
- 63% live in capital cities;
- 54% have children aged under 16 living at home.
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| The research also found that offset account holders are significantly more likely to be managing debts of $100,000 or more, and are 28% more likely to live in Queensland than those who do not have an offset account. |
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| At the same time as launching the Offset mortgage, Citibank has simplified its revolving line of credit, basic and standard variable mortgages. |
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| A Market Intelligence Strategy Centre report published last year found that Citibank has a higher number of accredited mortgage brokers than any other bank. |
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| "Citibank has been a key player in the third party distribution market for over a decade and our broader product range provides brokers with the breadth of choice expected by their customers," Mr McDonald said. |
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| For media enquiries: |
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| Kristen Kaus: T:(02) 8225 1631 M: 0421 380 773 kristen.kaus@citi.com |
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| Please E-mail: newsroom.australia@citigroup.com |
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| Citigroup (NYSE: C), the preeminent global financial services company has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at: www.citigroup.com |
