RACQ Bank Mortgage Breaker Loan


This home loan offers a very high variable interest rate, but borrowers have the ability to split the loan with a fixed rate for an introductory period.

Customers can make an unlimited number of extra repayments and also redraw these payments via the offered redraw facility. They also have the flexibility to take a break from making repayments.

There is a 100 per cent offset account available, so customers have a chance to repay their loan faster by offsetting their interest with a transaction account.

There is a minimum loan amount with a maximum of 95 per cent of the property’s value for owner-occupier loans and up to 80 per cent for investment loans.

Customers of the RACQ Bank Mortgage Breaker Loan can also package this loan with the RACQ Bank Choices Package, which offers benefits such as a discount on your variable rate (depending on how much you’re borrowing), a free bank account, a fee-free platinum credit card, added interest on term deposits and discounts on insurance products. It’s worth keeping in mind, the package does have an annual fee and eligibility criteria based on a minimum borrowing amount.

Who is the RACQ Bank Mortgage Breaker Loan good for?

This home loan is good for customers who want to make early repayments and offset their interest payments with a transaction account to pay off their home loan faster, with the added flexibility of being able to redraw these payments and take a break from making them if ahead of schedule.

This loan is also good for people looking for a package deal on the financial products offered by RACQ Bank.

Review - What RateCity says

The main attractive feature of the QT Mutual Bank Mortgage Breaker Loan is the flexibility offered around the ability to split a loan, make extra repayments, redraw these payments and package the loan with other QTMB products, although there is an annual fee charged for packaging.


However, this loan does have a very-high variable interest rate which might outweigh the mentioned benefits. If you’re interested in this loan, it would be a good idea to weigh up the features against the cost of the high interest rate. 

RACQ Bank Mortgage Breaker Loan Options

The RACQ Bank Mortgage Breaker Loan is offered for owner-occupier and investment properties. To find out more information about each, click the links below.

  • 100 per cent offset account availability and redraw facility
  • Ability to package with other financial products
  • Option to take a break from making repayment if ahead on payments
  • Very high variable rate
  • Minimum borrowing amount
  • Annual fee charged for package option

Must be able to provide proof of income

Must be over 18 years of age

Must meet serviceability criteria

Must meet minimum borrowing amount

About RACQ Bank

RACQ was formed more than 100 years ago, in 1905, as a Queensland-based club for motorists. QT Mutual Bank was set up in the mid 1960s under the name the Queensland Teachers' Credit Union with the aim of lending money to other teachers.

On 18 April 2016, RACQ and QT Mutual Bank announced a proposal to join forces and form a powerful member-owned, community-focused mutual organisation. The merger of these two organisations into RACQ Bank came into effect as of 25 September 2017

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