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.

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Review by

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206) and a Tier 1 Generic Knowledge certification (RG 146).

Expert review

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 90% loan-to-value ratio (LVR) with LMI, with investors only allowed to borrow a maximum of 80% LVR.

About this loan

What are the features and benefits 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 90% 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.

What fees and charges come with this loan?

  • Establishment fee: $900. This fee is charged for the creation of your loan and all associated accounts.
  • Loan splitting fee: $150. This fee is charged if you wish 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 fee: $165. This fee is charged when you close the loan account.

How to apply

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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    Default Gravatar
    January 16, 2018

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

      February 22, 2018

      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.



    Default Gravatar
    January 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

      February 22, 2018

      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.



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