based on 18 RACQ Bank banking product reviews as rated by Mozo community

RACQ Bank home loans

Launched in 2017, RACQ Bank is the banking arm of the Royal Automobile Club of Queensland (RACQ). As a member owned bank, RACQ Bank pledges to put its people before profits, which means creating competitive products for its members to use - including home loans.  

Despite being relatively new, RACQ Bank has already made an impression on the home loan scene by taking out numerous awards - most recently three 2021 Mozo Experts Choice Home Loan Awards for its outstanding investor and fixed rate home loans.

What home loans do RACQ Bank offer?

Rates and fees verified as correct at 17 September, 2021. Other information correct at the time of writing. Advertiser disclosure.

Fixed Rate Home Loans

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. 

Home loan repayments calculator

years

Product Fixed 3 year rate Comparison Rate Service fee Upfront fee Monthly repayments

1.99% p.a.

2.62% p.a.

$0.00

$903

2.19% p.a.

2.92% p.a.

$0.00

$903

Variable Rate Home Loans

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. 

Home loan repayments calculator

years

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

2.99% p.a.

3.05% p.a.

$0.00

$903

3.09% p.a.

3.15% p.a.

$0.00

$903

2.89% p.a.

2.95% p.a.

$0.00

$903

RACQ Bank home loan features in a glance

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Low deposit requirements 

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.   

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Offset account, extra repayments and redraws

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.

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Packaged loan options

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. 

How are RACQ Bank home loans rated?

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.

Icon of home-loans
RACQ Bank home loans
Overall
Price
Features
Customer service
Convenience
Trust

7 Reviews

Recent RACQ Bank home loan reviews

RACQ Bank Home Loan
Overall 10/10
Be surprised.

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 review

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.

Price
10/10
Customer service
10/10
Convenience
10/10
Less
Michelle, Queensland, reviewed 6 months ago
RACQ Bank Home Loan
Overall 8/10
Great bank to be with

The bank offers a comparative rate and a discount on insurance products as well.

Read full review

The bank offers a comparative rate and a discount on insurance products as well.

Price
8/10
Features
8/10
Customer service
10/10
Convenience
4/10
Trust
9/10
Less
Mark, Queensland, reviewed 9 months ago
RACQ Bank Mortgage Saver Special
Overall 10/10
Very happy with this loan and application process.

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 review

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.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Dan, Queensland, reviewed about 1 year ago
RACQ Bank Home Loan
Overall 2/10
Try if you want to experience 80's banking system.

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 review

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.

Price
10/10
Features
10/10
Customer service
9/10
Convenience
0/10
Trust
1/10
Less
Anyone, Queensland, reviewed over 1 year ago
RACQ Bank Mortgage Breaker (Choices Package)
Overall 6/10
Okay.

Stuffed up rewards by not processing paperwork properly with loan approval.

Read full review

Stuffed up rewards by not processing paperwork properly with loan approval.

Price
8/10
Features
6/10
Customer service
6/10
Convenience
6/10
Trust
6/10
Less
Megan, Queensland, reviewed almost 2 years ago

What do you need to apply for a RACQ Bank home loan?

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:  

  • Personal details for each applicant (if necessary)
  • Contact details including a valid email address
  • Proof of salary (i.e. payslips) and evidence of other income including government payments and rental income
  • Statements for any liabilities including credit cards or other existing loans
  • A copy of your driver's licence or passport
  • Home loan statements (if you’re refinancing)

Home loan quick links