RACQ Bank debuts with 13 branches

RACQ Bank debuts with 13 branches

One of Australia’s largest member organisations has just opened a mutual bank, which it claims will be “a trusted alternative to shareholder-owned, profit-hungry banks”.

RACQ Bank, which has been launched by the Royal Automobile Club of Queensland, has 13 branches, located in Brisbane, Gold Coast, Ipswich, Toowoomba, Cairns and Townsville.

The bank offers home loans, car loans, personal loans, credit cards, savings accounts, transaction accounts, term deposits and financial planning.

Customers have access to a mobile app, and can make payments through Android Pay, Apple Pay and Samsung Pay.

According to the RACQ, it is the first automobile club in the world to launch a mutual bank.

RACQ promises to reinvest profits

RACQ chief executive Ian Gillespie said the new bank would allow the RACQ to provide better service to its more than 1.6 million members.

“We’re committed to giving members honest, easy and great-value banking products and services, without any hidden fees or excessive charges,” he said.

“We’re also one of Queensland’s last remaining mutual banks, and we are working for our members not for shareholders. Any profits the bank makes will be reinvested back into the RACQ ecosystem for the benefit of our members here in Queensland.”

Mr Gillespie added that RACQ had established digital platforms “equal to those of any top-level bank in the country”.

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Yes, ANZ, Commonwealth Bank, NAB and Westpac all offer guarantor home loans. These mortgages are also offered by many other banks, credit unions and building societies.

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No Cost Refinancing is an option available in the US where the lender or broker covers your switching costs, such as appraisal fees and settlement costs. Unfortunately, no cost refinancing isn’t available in Australia.

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Whether you’re a new borrower or you’re refinancing your home loan, many lenders require you to be in a permanent job with the same employer for at least 6 months before applying for a home loan. Different lenders have different requirements. 

If your work situation changes for any reason while you’re applying for a mortgage, this could reduce your chances of successfully completing the process. Contacting the lender as soon as you know your employment situation is changing may allow you to work something out. 

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Will I have to pay lenders' mortgage insurance twice if I refinance?

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If you want to take out a low-deposit home loan, it might be a good idea to consult a mortgage broker who can give you professional financial advice and organise the mortgage for you.

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