RACQ Bank Mortgage Breaker

Mozo snapshot:

If you’re a Queenslander looking to break the back of your mortgage, RACQ Bank’s Mortgage Breaker Loan could be what you’re looking for. Available to investors and owner occupiers with a Queensland residential address, this home loan has all the features you want like a competitive interest rate, offset account and no account keeping fees. You’ll need to take into account the $395 annual package fee so be sure that you’ll use the offset facility and other benefits to their full advantage so that you get the best possible value from the loan.

Key features:

With the Mortgage Breaker Choices Package interest rates are tiered depending on a number of factors: how much you’re borrowing, the amount of deposit you’ve got towards the property, if you’re buying an investment property and whether you’re making interest only or principal and interest repayments.

The maximum loan to value ratio for owner occupiers is 95% and up to 90% for investors. There is a minimum loan amount of $150,000 and a maximum loan term of 30 years.

Other features that come with the loan include the ability to split the loan between fixed and variable rates, and the ability to make repayments either weekly, fortnightly or on a monthly basis. Plus, you can make extra repayments without paying extra fees.

The $359 annual package fee is standard for packaged loans, and includes extra benefits like a fee free platinum credit card and additional interest on any term deposits you have with RACQ Bank.

When you’re approved for a loan you’ll automatically become a member of RACQ which will give you access to things like discounted movie tickets and dining rewards. Best of all the package loan has an offset account which means that money kept in this account will be offset against the interest owing on your home loan.

Who it's good for:

Borrowers are looking for a flexible home loan that will allow them to pay off their home loan sooner and reap the benefits that come with RACQ membership.