RACQ Bank Mortgage Breaker Home Loan Review

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

Get a variable rate mortgage for home buyers and investors that comes with 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.
90% 80%
Owner Occupier
4.99% p.a.
Comparison Rate
5.03% 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

  • $600 application fee
  • $289.40 discharge fee

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.

Features of the RACQ Bank Mortgage Breaker Home Loan

  • Loan amount and term. You can borrow a minimum of $20,000 with this loan.
  • 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 90% 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.
  • Discharge fee: $289.40. This fee is charged when you close the loan account.

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.
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4 Responses

  1. Default Gravatar
    ShriJanuary 16, 2018

    Also, after the introductory period, how the loan repayments will be calculated?
    The loan amt would be less by that time.

    • finder Customer Care
      JonathanFebruary 22, 2018Staff

      Hi Shri, thanks for your inquiry.

      After the introductory period, your loan amount would attract interest at RACQ’s standard variable rate. Please use our home loan repayment calculator to determine your exact payments.

      Thanks,

      Jonathan

  2. Default Gravatar
    ShriJanuary 16, 2018

    Hi There,
    I want to know that the Intro Rate offer, the int rate for 12 months is 3.72%, what will be interest rate after 12 months?
    Also could you please explain me the meaning of comparison interest rate?
    Pls reply to me
    Thx.

    • finder Customer Care
      JonathanFebruary 22, 2018Staff

      Hi Shri, thanks for your comment.

      The current comparison rate for RACQ Bank’s Mortgage Breaker Home loan is 4.91%. This is the rate that you would receive after the 12 month promotion introductory rate.

      Comparison interest rate is a figure used to help consumers identify the true cost of a loan. It factors in the interest rate, fees and charges and displays a single percentage rate that can be used to compare various loans from different lenders.

      Best,

      Jonathan

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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