Auswide Bank RBA Rate Tracker Home Loan

Rates and Fees verified correct on December 10th, 2016

Auswide Bank’s Rate Tracker Home Loan tracks the movements of the official cash rate, allowing you to take advantage of rate cuts as soon as they occur.

If you’re sick of waiting for your bank to pass on the latest rate cut to your home loan, you might want to consider the Auswide Bank RBA Rate Tracker Home Loan. Introduced in October 2016, this loan features a variable interest rate that “tracks” movements in the RBA’s official cash rate. This gives you the certainty of knowing exactly what will happen to your home loan if the RBA increases or cuts rates.

For example, if the RBA cuts the cash rate by 0.25%, the Rate Tracker Home Loan’s interest rate will also drop 0.25%; but if the RBA increases the cash rate by 0.25%, the loan’s interest rate will increase by the same amount.

The Auswide Bank RBA Rate Tracker Home Loan is a unique product on the Australian home loan market, so let’s take a closer look at the features it has to offer.

Product NameAuswide Bank RBA Rate Tracker Home Loan
Interest Rate TypeVariable
Interest Rate (p.a.)3.99%
Comp Rate^ (p.a.)4.01%
Minimum Loan Amount$150,000
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR80%
Loan Redraw FacilityYes
Extra RepaymentYes
Repayment TypePrincipal & Interest and Interest Only Options
Application Fee$300
Ongoing Fees$0 p.a.
Discharge Fee$350

Pros

  • Redraw facility.
  • No account keeping fees.

Cons

  • Maximum LVR of 80%.

Factors to consider about the Auswide Bank RBA Rate Tracker Home Loan

The Auswide Bank RBA Rate Tracker Home Loan offers borrowers the security of a fixed margin over the RBA’s official cash rate. This means that you can take immediate advantage of any rate cuts that occur, but also means that any cash rate increases will also be applied to your loan. The exception to this is if the cash rate falls to 0%, in which case you would only pay the fixed margin.

The Auswide Bank RBA Rate Tracker Home Loan is available for owner-occupier loans of $150,000 or more, with a maximum Loan-to-Value Ratio of 80%. It’s also available for borrowers looking to refinance an existing loan and offers the flexibility of making additional repayments and a redraw facility.

Features of the Auswide Bank RBA Rate Tracker Home Loan

The Auswide Bank RBA Rate Tracker Home Loan offers the following features to Australian borrowers:

  • Variable rate. The loan’s variable rate is set at a fixed margin above the RBA’s official cash rate. Any changes to the cash rate will be applied to the loan within two working days.
  • Maximum LVR. This loan has a maximum LVR of 80% and is suitable for customers who need to borrow $150,000 or more.
  • Repayment options. The Auswide Bank RBA Rate Tracker Home Loan is available with weekly, fortnightly or monthly repayments. You also have the flexibility of making additional lump sum repayments to pay off your loan ahead of schedule.
  • Redraw. If you need to access the extra repayments you make towards your loan, you can do so through a redraw facility. However, a $20 redraw fee will apply.
  • Easy application and approval. You can access a loan application form from the Auswide Bank website, and pre-approval is available to give you extra bargaining power when house hunting.
  • Loan access. You can access your loan through Auswide Bank’s Internet, mobile and phone banking services. This allows you to check your loan balance and account history and ask questions about your loan.
  • Transaction account required. You will need to hold or open a transaction account with Auswide Bank in order to be eligible for an RBA Rate Tracker Home Loan. If your income or salary is directly credited into this account, any monthly service fee that would normally apply will be waived.
  • Repayment holiday. You can take a break from making repayments if you get ahead of schedule.
  • Insurance. You also have the option of taking advantage of 90 days of free introductory home building insurance when you purchase a residential property.

Fees

There are no monthly or ongoing service fees with this loan below are the fees you will be asked to pay:

  • Establishment fee: $300. This fee covers the administrative costs of preparing your loan documents.
  • Redraw fee: $20. This fee is payable when you redraw funds from your additional loan repayments.
  • Mortgage release fee: $350. This fee is charged when you finish paying off your loan and discharge the mortgage from Auswide Bank.

How to apply for the Auswide Bank RBA Rate Tracker Home Loan

If the Auswide Bank RBA Rate Tracker Home Loan sounds like it could be the perfect loan for you, click one of the “Apply Now” links on this page to be redirected to the Auswide Bank website. From there you can save an interactive PDF home loan application form to your computer and begin the application process.

You’ll need to supply a range of details for the application, including:

  • Personal details. The names and contact details of all applicants must be supplied.
  • Employment details. The bank will need information about your occupation and/or employer.
  • Income information. You will need to provide details of your gross monthly income from all sources.
  • Asset details. Auswide Bank will require details of all the assets you own, including savings, shares, property and motor vehicles.
  • Existing loans. You will also need to provide the details of any existing home or personal loans, as well as information about your credit card limits and balances.

Completed applications can be returned to Auswide Bank via email, post or fax. Your application will then be assessed and you will be contacted by an Auswide lending consultant on the next working day.

If you’re looking for the consistency and security of a loan that moves in line with the RBA cash rate, compare the RBA Rate Tracker Home Loan with other mortgage products before you apply.

Auswide Bank RBA Rate Tracker Home Loan Interest Rate History vs RBA Cash Rate Graph

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This page was last modified on 28 October 2016 at 10:46.

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Auswide Bank RBA Rate Tracker Home Loan

  • Interest Rate

    3.99% p.a.

  • Comparison Rate

    4.01% p.a.

  • App Fee / Annual Service Fee

    $300 / $0

  • Max LVR

    80%

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