RACQ Bank Overdraft


If your home has at least 20 per cent equity, the RACQ Bank Overdraft gives you access to the portion you own to invest, go on holiday, buy a car or for other discretionary purposes.

However, your reasons for adding the Overdraft to your home loan account must be deemed worthwhile by RACQ Bank, so be sure to check that you’re eligible before moving forward with your loan decision making process.

The Overdraft option is offered as an attachment to either your owner-occupied home loan or your investment property loan, with the owner-occupier option at a high variable interest rate and the investment option at a very high variable rate.

While you do only pay back the interest charged for this loan, this cost can add up substantially over the life of your loan. Though, you do have the ability to make an unlimited number of extra repayments.

However, you will not be charged any ongoing fees for the Overdraft option. Although, this might be outweighed by the moderately high upfront cost and the discharge fee charged at the end of your loan.

This loan is portable so if you move homes or wish to switch the security under which your Overdraft loan is secured, you should be able to keep this same loan, which saves you time and money in having to establish a new loan and go through the application process again.

There is a minimum amount that you must borrow in order to be eligible for the Overdraft. You also must pay lenders mortgage insurance though if you borrow over 80 per cent of your property’s value.

Who is the RACQ Bank Overdraft good for?

The Overdraft is good for members of RACQ Bank or for people who have already decided they want to become a member, and who would like to access the equity in their home to have as a line of credit for purposes such as home renovations or improvements.

Review - What RateCity says

The high variable interest rate for owner-occupiers, and even higher still for investors, makes this line of credit option worth looking into closely to see if it matches exactly what you need and what you’re looking for.

The main features that the QT Mutual Bank Overdraft offers is mortgage portability and no ongoing fees, although this may be negated by the large upfront cost and the discharge fee.

There is also eligibility criteria that you must meet in order to qualify for the Overdraft line of credit, so be sure to do your research and ensure that this is the best loan option for you before applying.

RACQ Bank Overdraft Options

  • Access to line of credit through property equity
  • $0 in ongoing fees
  • Mortgage portability
  • High to very-high variable interest rates
  • Moderately-high upfront fees
  • Limited in what loan can be used for

Must fit RACQ Bank's definition of worthwhile purpose

Minimum borrowing amount

Must be an RACQ Bank member

About RACQ Bank

The RACQ Bank Overdraft loan is offered to as both an owner-occupier home loan and an investment property loan. Find out more information about each option at the links below.

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