Rates and fees verified as correct at 12 April, 2021. Other information correct at the time of writing. Advertiser disclosure.
RACQ Bank's Fixed Home Loan could be the perfect match for owner occupiers or investors who are happy to lock in a competitive fixed rate for 1, 2, 3 or 5 years. The offer will suit those looking to borrow at least $20,000 to fund a property purchase with a deposit of at least 10%, though owner occupiers will only have the option of making principal and interest repayments on the loan. Not unsurprisingly, given it's a fixed rate home loan, there are not many features on offer aside from the ability for mortgage holders to make free extra repayments towards their loan balance (free up to $10,000/year during fixed rate period). There are also a number of one-off fees involved, but you can read more about those in the linked reviews in the table below.
| Product | Fixed 3 year rate | Comparison Rate | Service fee | Upfront fee | Monthly repayments |
|---|---|---|---|---|---|
| 1.99% p.a. | 3.79% p.a. | $0.00 | $903 | ||
| 2.19% p.a. | 4.17% p.a. | $0.00 | $903 |
For borrowers happier to go with a more flexible option, RACQ Bank also has a couple of variable rate home loan products: the Mortgage Breaker and Mortgage Saver Special. While both loans can be used to fund purchases starting from $20,000, the Mortgage Breaker loan is available to all types of borrowers whereas the Mortgage Saver Special is just designed for owner occupiers. When it comes to features, both loans offer free extra repayments, free redraws and the choice for borrowers to make their repayments on a weekly, fortnightly or monthly basis, but the Mortgage Breaker home loan also comes with an offset account attached. The Mortgage Breaker is the more expensive option when it comes to fees though as there's a $600 application fee in addition to a few other one-off fees, while the Mortgage Saver Special doesn't come with an application fee.
| Product | Rate | Comparison Rate | Service fee | Upfront fee | Monthly repayments |
|---|---|---|---|---|---|
| 4.33% p.a. | 4.39% p.a. | $0.00 | $903 | ||
| 2.95% p.a. | 3.01% p.a. | $0.00 | $903 | ||
| 2.85% p.a. | 2.91% p.a. | $0.00 | $903 | ||
| 2.75% p.a. | 2.81% p.a. | $0.00 | $903 | ||
| 2.65% p.a. | 2.67% p.a. | $0.00 | $303 | ||
| 2.75% p.a. | 2.77% p.a. | $0.00 | $303 | ||
| 2.55% p.a. | 2.57% p.a. | $0.00 | $303 | ||
| 4.79% p.a. | 4.85% p.a. | $0.00 | $903 | ||
| 3.09% p.a. | 3.15% p.a. | $0.00 | $903 | ||
| 3.09% p.a. | 3.15% p.a. | $0.00 | $903 |
RACQ Bank's fixed package option, the Fixed Rate (Choices Package), comes with some seriously low rates for both owner occupiers and investors on 1, 2, 3 and 5-year terms. The loan is available on loan amounts above $150,000 with a deposit as low as 10%, and it includes useful features such as extra repayments (free up to $10,000/year during fixed rate period) as well as additional perks like a credit card annual fee waiver and additional interest on an RACQ term deposit. There are a number of fees to consider though, including the $395 yearly service fee, but to learn more about those and other loan details check out the linked reviews below.
| Product | Fixed 3 year rate | Comparison Rate | Service fee | Upfront fee | Monthly repayments |
|---|---|---|---|---|---|
| 1.89% p.a. | 3.47% p.a. | $395.00 yearly | $303 | ||
| 1.89% p.a. | 3.84% p.a. | $395.00 yearly | $303 | ||
| 1.89% p.a. | 3.55% p.a. | $395.00 yearly | $303 | ||
| 2.09% p.a. | 3.85% p.a. | $395.00 yearly | $303 | ||
| 2.09% p.a. | 3.92% p.a. | $395.00 yearly | $303 | ||
| 2.09% p.a. | 4.21% p.a. | $395.00 yearly | $303 |
Investors and owner occupiers can also choose to opt for a variable package deal with RACQ Bank's Mortgage Breaker (Choices Package). Interested borrowers can take out a loan from $150,000 and upwards with a deposit as small as 10% of the property's value, and they'll have have a range of features at their disposal including free extra repayments, a redraw facility and an offset account. Like the fixed package above, customers will also be able to take advantage of special offers on a number of other RACQ Bank products including credit cards and term deposits - though the privilege of having a packaged loan will come at a price (a $395 annual service fee).
| Product | Rate | Comparison Rate | Service fee | Upfront fee | Monthly repayments |
|---|---|---|---|---|---|
| 3.43% p.a. | 3.86% p.a. | $395.00 yearly | $303 | ||
| 3.53% p.a. | 3.96% p.a. | $395.00 yearly | $303 | ||
| 3.93% p.a. | 4.35% p.a. | $395.00 yearly | $303 | ||
| 4.39% p.a. | 4.80% p.a. | $395.00 yearly | $303 | ||
| 3.99% p.a. | 4.41% p.a. | $395.00 yearly | $303 | ||
| 3.89% p.a. | 4.31% p.a. | $395.00 yearly | $303 |
If you're a first time buyer, or any borrower for that matter, and you're finding it tough to hit a 20% deposit, RACQ Bank has a number of low deposit home loan options (both variable and fixed) with deposit requirements as low as 10%. Just remember that there's a trade off, as loans with lower deposit requirements tend to come with higher rates.
A number of RACQ Bank's home loans - particularly the variable rate options - come with useful features for borrowers looking for that extra bit of flexibility in their loan, or to help them pay off their loan faster and save on interest. While their availability depends on the specific loan, extra repayments, redraws and offset accounts are all features made available to RACQ Bank customers.
If you like the idea of bundling your home loan with a range of other banking products, either RACQ Bank's fixed or variable Choices Package home loan could be an option to consider - especially if you can make use of the fee waivers and rate incentives it provides.
Mozo users have rated RACQ Bank home loans on price, features, convenience, trust and customer service so you can see what real Aussies have to say about their experiences.
7 Reviews
When I first approached the bank via phone it was on the off chance that they "might" be able to help me as at the time they were a new bank so I thought worth a try, nothing to lose. Surprisingly, they listened to my story. I'm a square peg that doesn't fit in a round hole and they refinanced my home loan. They are only a phone call away if I need anything. I get a great deal on all my insurances and if I ever need to make a physical deposit, it's as close as the Post Office. I would recommend them to anyone, especially if you don't conform to the requirement of the other banks. At least with RACQ you are treated as an individual.
Read full reviewWhen I first approached the bank via phone it was on the off chance that they "might" be able to help me as at the time they were a new bank so I thought worth a try, nothing to lose. Surprisingly, they listened to my story. I'm a square peg that doesn't fit in a round hole and they refinanced my home loan. They are only a phone call away if I need anything. I get a great deal on all my insurances and if I ever need to make a physical deposit, it's as close as the Post Office. I would recommend them to anyone, especially if you don't conform to the requirement of the other banks. At least with RACQ you are treated as an individual.
The bank offers a comparative rate and a discount on insurance products as well.
Read full reviewThe bank offers a comparative rate and a discount on insurance products as well.
Very happy with this product. Good rate, flexible extra repayments/withdraw through banking app and like to have the option to visit a branch if needed. The service provided during the application process exceeded my expectations. Our agent was easy to contact and guided us through this process with prompt replies and clear information and instructions.
Read full reviewVery happy with this product. Good rate, flexible extra repayments/withdraw through banking app and like to have the option to visit a branch if needed. The service provided during the application process exceeded my expectations. Our agent was easy to contact and guided us through this process with prompt replies and clear information and instructions.
Great home loan product with poor system and communication. Consultants are all kind and friendly but very hard to get things process done. Have a doubt about their reliability.
Read full reviewGreat home loan product with poor system and communication. Consultants are all kind and friendly but very hard to get things process done. Have a doubt about their reliability.
Stuffed up rewards by not processing paperwork properly with loan approval.
Read full reviewStuffed up rewards by not processing paperwork properly with loan approval.
Interested in one of RACQ Bank's home loans? The first step you'll need to take is to fill out an enquiry form online before speaking to one of RACQ Bank's lending specialists. Just remember that you'll need to be at least 18 and an Australian resident in order to apply. It may also be worthwhile getting together some information beforehand including:
