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Regional Australia Bank Partnership Advantage Loan

Features

Interest rate discounts for the Partnership Advantage variable loans are tiered, so you get a greater discount by borrowing more. Both variable and fixed rate loans are available, but variable rate loans offer more features.


Partnership Advantage Loan – variable

Variable loans are offered with a 100 per cent offset facility that comes with up to eight linked accounts, allowing you to save and pay off your home loan at the same time. You can make extra repayments as you like and redraw these additional monies at no additional fee. Nor is there a penalty for early payout.

The interest rate discounts on variable loans are generous - up to 0.96 per cent off the standard variable rate for loans of more than $400,000. You also get a generous 0.86 per cent discount for loan amounts between $250,000 and $399,999 and 0.56 per cent for amounts between $150,000 and $249,999.

Interest only options are also available. In addition, if you link your loan to a Regional Australia Bank transaction account and maintain a minimum balance of $5000 in that account, your transaction account will be fee-free.

The Your Choice Visa credit card that comes with the package includes a 5 per cent discount on credit card interest rates and the annual fee is waived. The card has a minimum credit limit of $5000.

Additional benefits include a 10 per cent discount on CGU general insurance policies and a free initial appointment with a financial planner.

Borrowers need a 5 per cent deposit or available equity but if you have a 20 per cent deposit you can avoid paying lenders mortgage insurance. The variable loan is available for 25 years.

Partnership Advantage Loan – fixed

Fixed loan terms are available for one, two, three and five years, and you should note that that is a more limited selection than some other lenders offer.

The insurance discounts and financial planning session are included with the fixed rate loan, but the interest rate discount is only 0.1 per cent off the advertised rate, whatever the term of the loan.

The 100 per cent offset facility is not available for fixed loans. Nor is the free redraw. You’ll get charged for an early payout and making additional repayments. This is strict, because several other home lenders allow repayments of up to $10,000, and even $20,000 in some cases.

Who is the Regional Australia Bank Partnership Advantage Loan good for?

The Regional Australia Bank’s Partnership Advantage Loan package is good for both owner-occupiers and investors. There is no additional interest rate charge to investors and the package offers flexibility and some financial planning. But if you’re looking for the best value fixed rate loan, you may want to shop around a little more as the conditions on fixed loans are stricter than those many other lenders offer.

Review - What RateCity says

The Partnership Advantage Loan package could suit you if you’re looking for a home loan with a moderately low interest rate and you’re keen to keep all your banking products in one place. The annual package fee is line with those charged by the big banks – but the benefits may not be as great, with no repayments allowed on fixed loans, fixed terms are limited as is the discount. The annual package fee remains the same though so bear this in mind if you opt for a fixed loan.

You’ll also be charged to use a transaction account if the balance falls below $5000.  But there are other savings to be made in terms of discounted insurance, a fee-free credit card and a financial planning consultation. However, the smaller branch and ATM network may be a drawback for you, depending on where you live so check the locations on the Community Mutual Group website.

Regional Australia Bank Partnership Advantage Loan Options

The Community Mutual Group’s Partnership Advantage package has a dozen loan options to choose from to help you find the one that suits you and your financial goals the best. Click on the links below to get more specific information regarding each loan type.

Product
Advertised rate
Comparison rate*
Monthly repayment
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Fixed Rates from

3.89%

Advertised rate

4.65%

Comparison rate

Variable Rates from

4.17%

Advertised rate

4.55%

Comparison rate
Pros
  • 100 per cent offset facility for variable loans.
  • Up to 0.96 per cent discount on variable rate for loans over $400,000.
  • Interest only loans available.
Cons
  • Cannot make additional repayments to fixed rate loan.
  • No offset or redraw facility for fixed rate loan.
  • Few branch locations and none in major cities.
Eligibility

Deposit of 5 per cent required, or available equity.

Available to owner-occupiers as well as investors.

Pay the annual package fee when it falls due.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $0
  • Discharge fees: $150
  • Ongoing fees: $375 annually

The Partnership Advantage Loan does not charge any monthly fees, nor is there a loan application fee. However, the annual package fee is $375, though this is line with package fees charged by the big banks. There is also a loan approval fee of $375. And if you are using more than one property to secure your loan, be aware that additional valuation fees may apply. As mentioned previously, the fixed rate loan incurs additional fees for early payout. You may also pay a monthly account-keeping fee if your transaction account balance falls below $5000. A moderate discharge fee applies.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About Regional Australia Bank

Regional Australia Bank is a group of credit unions that donates a portion of profits back into the local community. The organisation has a limited number of branches, all located in regional areas, and ATM locations. Banking with Regional Australia Bank is done mostly online or via telephone banking. To set up your internet banking access you have to visit a branch or complete an online form.

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