RACQ Bank Mortgage Breaker Home Loan Review

Rates and fees last updated on

An introductory variable rate home loan with a 100% offset account, unlimited repayments and a redraw facility to access those additional funds.

Enjoy a discount on your standard variable interest rate for the first year, as well several features that can assist you with paying off your loan earlier. You can also combine the RAQ Bank Mortgage Breaker Home Loan with the Choices Package to get more benefits.

QTMB merger

Due to a merger, QT Mutual Bank is now named RACQ Bank. All QTMB products have been renamed to RACQ Bank.

Interest Rate Max Insured LVR Max LVR
Investor
5.45% p.a.
Comparison Rate
5.49% p.a.
80% 80%
Owner Occupier
4.99% p.a.
Comparison Rate
5.03% p.a.
95% 80%
Intro Rate Offer (Investors)
4.12% p.a.
Comparison Rate
5.36% p.a.
80% 80%
Intro Rate Offer (Owner Occupier)
3.72% p.a.
Comparison Rate
4.91% p.a.
95% 80%
Product NameRACQ Bank Mortgage Breaker Home Loan
Interest Rate TypeVariable
Comp Rate^ (p.a.)
Minimum Loan Amount$20,000
Maximum Loan Amount$2,000,000
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR95%
Mortgage Offset AccountYes
Mortgage 100% OffsetYes
Loan Redraw FacilityYes
Split Loan FacilityYes
Fixed Interest OptionNo
Loan PortableYes
Suitable for InvestmentYes
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypePrincipal & Interest
Application Fee$600
Lender's Legal Fee$0
Valuation Fee$0
Ongoing Fees$0 p.a.
Settlement Fee$0
Discharge Fee$289.40

Pros

  • 100% offset account
  • No monthly or annual fees
  • Unlimited extra repayments
  • Redraw facility

Cons

  • Establishment fee of $600
  • Interest rate reverts to a higher rate after the first 12 months

Details to consider about the RACQ Bank Mortgage Breaker Home Loan

The RACQ Bank Mortgage Breaker Home Loan is suitable for owner occupiers and investors looking to make principal and interest repayments. You will need a minimum deposit of 20% if you wish to avoid lenders mortgage insurance (LMI) as an owner occupier. Owner occupiers can borrow up to 95% loan-to-value ratio (LVR) with LMI, with investors only allowed to borrow a maximum of 80% LVR.

In order to receive the introductory interest rate for the first 12 months of your home loan, you will need a minimum loan amount of $125,000. After the introductory period ends, your interest rate will revert to the standard variable interest rate for the Mortgage Breaker Home Loan, which is 4.92% for owner occupiers and 5.45% p.a. (comp rate of 5.49% p.a.) for investors.

Features of the RACQ Bank Mortgage Breaker Home Loan

  • Loan amount and term. You can borrow a minimum of $20,000with this loan, but you will need a loan amount of at least $125,000 in order to receive the discounted introductory interest rate. You can take out a loan for a maximum of 30 years.
  • Loan-to-value ratio (LVR). You can borrow up to 80% LVR before incurring LMI and up to 95% LVR with LMI if you are an owner occupier. You can borrow up to a maximum of 80% LVR if you are an investor.
  • Offset account. You will be able to use the 100% offset account attached to this loan to help you pay off your loan sooner by reducing the interest calculated.
  • Split loan option. You can split your loan so that a portion is fixed to take advantage of the stability of a fixed rate whilst also having the benefit of a variable rate that may decrease if market conditions allow.
  • Additional repayments and redraw facility. You can make unlimited additional repayments with this loan and then redraw them if you need to with the available redraw facility.
  • Package benefits available. You can package your Mortgage Breaker Home Loan with RACQ Bank's Choices Package, which offers benefits such as additional discounts on your home loan interest rate, waived credit card annual fees and other banking discounts with RAQ Bank. You will need to pay an annual package fee of $395 when you package your loan.

Fees payable with the RACQ Bank Mortgage Breaker Home Loan

  • Establishment fee: $600. This fee is charged for the creation of your loan and all associated accounts.
  • Loan splitting fee: $150. This fee is charged if you choose to split your loan between fixed and variable upon application. A fee of $200 will apply if you choose to split your loan at a later date.
  • Discharge on refinance fee: $165. This is paid when you refinance your home loan and need to discharge your loan from RAQ Bank.
  • Discharge in full to owner fee: $132. This is paid when you pay out your home loan in full and the documents are discharged and handed to you as the owner.
  • Discharge in full when registered with government department fee: $307. This is paid when you pay out your home loan in full and the documents are discharged when the mortgage is registered with the Department of Natural Resources and Mines.

How to apply for the RACQ Bank Mortgage Breaker Home Loan

If you’ve considered your options and the RACQ Bank Mortgage Breaker Home Loan seems like the right home loan for you, you can apply online or contact RACQ Bank to discuss the loan further.

Before you contact RACQ Bank about this loan, make sure you have the following information on hand:

  • Personal and contact details. This includes your full name, address, contact number, personal identification and the same details for all applicants.
  • Loan and property details. This includes how much you wish to borrow, the way you want to structure your loan and details of the property you are looking to purchase.
  • Financial details. This includes information about your income from work and any other income streams, your savings and your monthly living expenses.
  • Financial liabilities. You will need to supply information about any and all other loans, credit cards and debt related products that are attached to your name or any of the applicants’ names.

With its discounted introductory interest rate for the first 12 months and a 100% offset account attached, the RACQ Bank Mortgage Breaker Home Loan is a competitive loan that might just be right for you.


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This page was last modified on 25 September 2017 at 12:03pm.

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RACQ Bank Mortgage Breaker Home Loan

  • Interest Rate

    N/A

  • Comparison Rate

    N/A

  • App Fee / Annual Service Fee

    $600 / $0

  • Max LVR

    80%

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