RateCity.com.au
powering smart financial decisions
RateCity.com.au

Pros and cons

  • Variety of home loan products.
  • Opportunity to bundle other financial products.
  • Caters for people with specific needs.
  • Community based bank run by members.
  • Some products include fees.
  • Limited branch access.

Owner occupied RACQ Bank home loan rates

TMD

Loan typePrincipal & Interest rateInterest Only
Mortgage Saver Special Home Loan - Owner Occupied (QLD only) (Min Deposit 30%)
2.74% p.a.
2.76% p.a. Comparison rate
n/a
Mortgage Saver Special Home Loan - Owner Occupied (QLD only) (Min Deposit 20%)
2.94% p.a.
2.96% p.a. Comparison rate
n/a
Mortgage Breaker Special - Owner Occupied (QLD only) (Min Deposit 30%)
2.94% p.a.
3% p.a. Comparison rate
n/a
Mortgage Breaker Special - Owner Occupied (QLD only) (Min Deposit 20%)
3.14% p.a.
3.2% p.a. Comparison rate
n/a
Mortgage Saver Special Home Loan - Owner Occupied (QLD only) (Min Deposit 5%)
3.34% p.a.
3.36% p.a. Comparison rate
n/a
1 Year Fixed Rate Home Loan - Owner Occupied (QLD only) (Min Deposit 30%)
4.09% p.a.
3.47% p.a. Comparison rate
n/a
1 Year Fixed Rate Home Loan - Owner Occupied (QLD only) (Min Deposit 20%)
4.29% p.a.
3.49% p.a. Comparison rate
n/a
1 Year Fixed Rate Home Loan - Owner Occupied (QLD only) (Min Deposit 5%)
4.69% p.a.
3.52% p.a. Comparison rate
n/a
Mortgage Breaker Special - Owner Occupied (QLD only) (Min Deposit 5%)
3.54% p.a.
3.6% p.a. Comparison rate
n/a
2 Year Fixed Rate Home Loan - Owner Occupied (QLD only) (Min Deposit 30%)
4.49% p.a.
3.6% p.a. Comparison rate
n/a
2 Year Fixed Rate Home Loan - Owner Occupied (QLD only) (Min Deposit 20%)
4.69% p.a.
3.64% p.a. Comparison rate
n/a
2 Year Fixed Rate Home Loan - Owner Occupied (QLD only) (Min Deposit 5%)
5.09% p.a.
3.71% p.a. Comparison rate
n/a
3 Year Fixed Rate Home Loan - Owner Occupied (QLD only) (Min Deposit 30%)
4.89% p.a.
3.8% p.a. Comparison rate
n/a
3 Year Fixed Rate Home Loan - Owner Occupied (QLD only) (Min Deposit 20%)
5.09% p.a.
3.86% p.a. Comparison rate
n/a
3 Year Fixed Rate Home Loan - Owner Occupied (QLD only) (Min Deposit 5%)
5.49% p.a.
3.96% p.a. Comparison rate
n/a
Mortgage Saver Home Loan (QLD only) (Min Deposit 5%)
4.04% p.a.
4.06% p.a. Comparison rate
n/a
5 Year Fixed Rate Home Loan - Owner Occupied (QLD only) (Min Deposit 30%)
4.99% p.a.
4.08% p.a. Comparison rate
n/a
5 Year Fixed Rate Home Loan - Owner Occupied (QLD only) (Min Deposit 20%)
5.19% p.a.
4.16% p.a. Comparison rate
n/a
5 Year Fixed Rate Home Loan - Owner Occupied (QLD only) (Min Deposit 5%)
5.59% p.a.
4.33% p.a. Comparison rate
n/a
Mortgage Breaker Variable Home Loan - Owner occupied (QLD only) (Min Deposit 5%)
5.08% p.a.
5.14% p.a. Comparison rate
n/a

Investment purpose RACQ Bank home loan rates

TMD

Loan typePrincipal & Interest rateInterest Only
Mortgage Breaker Investor Special (QLD only) (Min Deposit 30%)
3.14% p.a.
3.2% p.a. Comparison rate
n/a
Mortgage Breaker Investor Special (QLD only) (Min Deposit 20%)
3.34% p.a.
3.4% p.a. Comparison rate
n/a
Mortgage Breaker Investor Special (QLD only) (Min Deposit 10%)
3.74% p.a.
3.8% p.a. Comparison rate
n/a
1 Year Fixed Rate Home Loan - Investor (QLD only) (Min Deposit 30%)
4.29% p.a.
3.85% p.a. Comparison rate
n/a
1 Year Fixed Rate Home Loan - Investor (QLD only) (Min Deposit 20%)
4.49% p.a.
3.87% p.a. Comparison rate
n/a
1 Year Fixed Rate Home Loan - Investor (QLD only) (Min Deposit 10%)
4.89% p.a.
3.91% p.a. Comparison rate
n/a
2 Year Fixed Rate Home Loan - Investor (QLD only) (Min Deposit 30%)
4.69% p.a.
3.97% p.a. Comparison rate
n/a
2 Year Fixed Rate Home Loan - Investor (QLD only) (Min Deposit 20%)
4.89% p.a.
4.01% p.a. Comparison rate
n/a
2 Year Fixed Rate Home Loan - Investor (QLD only) (Min Deposit 10%)
5.29% p.a.
4.08% p.a. Comparison rate
n/a
3 Year Fixed Rate Home Loan - Investor (QLD only) (Min Deposit 30%)
5.09% p.a.
4.16% p.a. Comparison rate
n/a
3 Year Fixed Rate Home Loan - Investor (QLD only) (Min Deposit 20%)
5.29% p.a.
4.21% p.a. Comparison rate
n/a
3 Year Fixed Rate Home Loan - Investor (QLD only) (Min Deposit 10%)
5.69% p.a.
4.32% p.a. Comparison rate
n/a
5 Year Fixed Rate Home Loan - Investor (QLD only) (Min Deposit 30%)
5.19% p.a.
4.4% p.a. Comparison rate
n/a
5 Year Fixed Rate Home Loan - Investor (QLD only) (Min Deposit 20%)
5.39% p.a.
4.49% p.a. Comparison rate
n/a
5 Year Fixed Rate Home Loan - Investor (QLD only) (Min Deposit 10%)
5.79% p.a.
4.66% p.a. Comparison rate
n/a
Mortgage Breaker Variable Home Loan - Investor (QLD only) (Min Deposit 10%)
5.54% p.a.
5.61% p.a. Comparison rate
n/a

RACQ Bank home loan calculator

Thinking about taking out a home loan with RACQ Bank? Use our home loan calculator to see how much you’d have to repay under different borrowing scenarios. You can also see how RACQ Bank home loans compare with other options.

I am an

With a repayment type

Borrow amount

$

Deposit amount %

Loan term

Your estimated mortgage repayments

at interest rate 2.74%

Total interest payable

$0

Total loan repayments

$0

RACQ Bank customer service

RACQ Bank has numerous services for customers to access their accounts and get support. RACQ Bank also has a presence on the ground in Queensland, with over 13 branches throughout the state. RACQ Bank also has a team of mobile lenders. They can visit you at home and talk to you about a loan set-up that suits your personal circumstances. Customers can access their accounts 24-hours-a-day via internet banking and telephone banking is also available. Both these services allow you to access things such as your recent transactions history and account balance, as well as to  find a bank branch or ATM. The bank can also be contacted by email.

  • Mobile app
  • Online banking
  • Branch
  • Mobile banking staff

How to Apply

Applications and home loan enquiries can be made online at the RACQ Bank website or by downloading and completing relevant documentation then sending them to RACQ Bank via post. Relevant information includes:

  • Personal identification material
  • Proof of income
  • Information regarding your living costs

Learn more about home loans

Why does Westpac charge an early termination fee for home loans?

The Westpac home loan early termination fee or break cost is applicable if you have a fixed rate home loan and repay part of or the whole outstanding amount before the fixed period ends. If you’re switching between products before the fixed period ends, you’ll pay a switching break cost and an administrative fee. 

The Westpac home loan early termination fee may not apply if you repay an amount below the prepayment threshold. The prepayment threshold is the amount Westpac allows you to repay during the fixed period outside your regular repayments.

Westpac charges this fee because when you take out a home loan, the bank borrows the funds with wholesale rates available to banks and lenders. Westpac will then work out your interest rate based on you making regular repayments for a fixed period. If you repay before this period ends, the lender may incur a loss if there is any change in the wholesale rate of interest.

When does Commonwealth Bank charge an early exit fee?

When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.

The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:

  • If you switch your loan from fixed interest to variable rate
  • When you apply for a top-up home loan
  • If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
  • When you prepay the entire outstanding loan balance before the end of the fixed interest duration.

The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay. 

Cash or mortgage – which is more suitable to buy an investment property?

Deciding whether to buy an investment property with cash or a mortgage is a matter or personal choice and will often depend on your financial situation. Using cash may seem logical if you have the money in reserve and it can allow you to later use the equity in your home. However, there may be other factors to think about, such as whether there are other debts to pay down and whether it will tie up all of your spare cash. Again, it’s a personal choice and may be worth seeking personal advice.

A mortgage is a popular option for people who don’t have enough cash in the bank to pay for an investment property. Sometimes when you take out a mortgage you can offset your loan interest against the rental income you may earn. The rental income can also help to pay down the loan.

How can I apply for a first home buyers loan with Commonwealth Bank?

Getting a home loan requires planning and research. If you are considering a home loan with the Commonwealth Bank, you can find the information you need in the buying your first home section of the bank’s website.

You can see the steps you should take before applying for the loan and use the calculators to work out how much you can borrow, what your monthly repayments would be and the upfront costs you’d likely pay.

You can also book a time with a Commonwealth first home loan specialist by calling 13 2221.

CommBank publishes a property report that may help you understand the real estate market. The bank has also created a CommBank Property App that you can use to search for property.  The link to download this app is available on the same webpage.

If you are eligible for the First Home Loan Deposit Scheme, CommBank will help you process your application. The scheme helps first home buyers to purchase a home with a low deposit. You can read details about this scheme here and speak with a CommBank home lending specialist to understand your options.

How do I apply for a home loan pre-approval from Commonwealth Bank?

To apply for a Commbank home loan pre-approval, you can either call the bank at 13 2224 or meet one of the bank’s lending specialists. You can set up a meeting online if you wish. You’ll need to do some homework before contacting the bank, such as gathering information on the kind of properties you’d like to buy and their prices.

Preparing a financial summary, which lists all your income sources as well as significant expenses, can also help determine how much you can afford to borrow. You may also want to check your credit score before applying for pre-approval.

It’s worth remembering that a CBA home loan pre-approval doesn’t guarantee that you’ll get the loan. Once you get the pre-approval, you’ll have about three to six months to decide on a property and apply for the home loan. The bank will then confirm that the property is suitable for the loan before fully approving it.

How to apply for a pre-approval home loan from Bendigo Bank?

Applying for pre-approval on your home loan gives you confidence in your ability to secure finance while looking at potential new homes. You can get a free and personalised pre-approval home loan from Bendigo Bank in just a few minutes, without any credit checks or paperwork. 

Bendigo Bank offers pre-approval for home loans that allow you to understand the home loan size you may be able to get before looking for a new home. 

With the pre-approval, Bendigo Bank provides an estimate of your borrowing power. This figure incorporates stamp duty, lenders mortgage insurance (LMI) and any first home buyer incentives you may be eligible for. You may also qualify for the First Home Loan Deposit Scheme initiative, depending on your circumstances. 

To apply for a pre-approval on your home loan from Bendigo Bank, all you need to do is fill in a smart form. You could also contact the bank directly on 1300 236 344.

How do I find out my current interest rate and how much is owing on my loan?

Your bank statements and/or your internet banking should show these details. If you are not sure, call your bank or estimate.

Who offers 40 year mortgages?

Home loans spanning 40 years are offered by select lenders, though the loan period is much longer than a standard 30-year home loan. You're more likely to find a maximum of 35 years, such as is the case with Teacher’s Mutual Bank

Currently, 40 year home loan lenders in Australia include AlphaBeta Money, BCU, G&C Mutual Bank, Pepper, and Sydney Mutual Bank.

Even though these lengthier loans 35 to 40 year loans do exist on the market, they are not overwhelmingly popular, as the extra interest you pay compared to a 30-year loan can be over $100,000 or more.

What are the features of home loans for expats from Westpac?

If you’re an Australian citizen living and working abroad, you can borrow to buy a property in Australia. With a Westpac non-resident home loan, you can borrow up to 80 per cent of the property value to purchase a property whilst living overseas. The minimum loan amount for these loans is $25,000, with a maximum loan term of 30 years.

The interest rates and other fees for Westpac non-resident home loans are the same as regular home loans offered to borrowers living in Australia. You’ll have to submit proof of income, six-month bank statements, an employment letter, and your last two payslips. You may also be required to submit a copy of your passport and visa that shows you’re allowed to live and work abroad.

When do mortgage payments start after settlement?

Generally speaking, your first mortgage payment falls due one month after the settlement date. However, this may vary based on your mortgage terms. You can check the exact date by contacting your lender.

Usually your settlement agent will meet the seller’s representatives to exchange documents at an agreed place and time. The balance purchase price is paid to the seller. The lender will register a mortgage against your title and give you the funds to purchase the new home.

Once the settlement process is complete, the lender allows you to draw down the loan. The loan amount is debited from your loan account. As soon as the settlement paperwork is sorted, you can collect the keys to your new home and work your way through the moving-in checklist.

Who sets mortgage rates?

Mortgage rates are influenced by the official cash rate, which is determined by the Reserve Bank of Australia (RBA) at its monthly board meeting on the first Tuesday of every month, except for January.

The official cash rate is the interest rate that banks charge other banks to borrow money. If the RBA cuts the cash rate, the interest rate banks are charged when they borrow from other banks is reduced. Likewise, if the cash rate is hiked, the interest rate banks are charged will go up.

If banks can save money from reduced interest rates, they will often pass on some or all of these savings to their variable rate home loan customers – although they are not required to. They can also choose to pass on a cash rate rise by increasing mortgage interest rates.

What is the ANZ home loan settlement process?

Settlement is the procedure for the official transfer of ownership between the seller and buyer. It’s often done without the seller or buyers input but between both parties’ the financial and legal representatives.

Here is how the ANZ home loan settlement process works:

  1. The solicitor or conveyancer prepares the Transfer of Land document at least two weeks before the settlement date.
  2. The signed document is registered at the state or territory land registry office.
  3. Your solicitor or conveyancer will connect with the ANZ home loan settlement contact and the seller’s solicitor or conveyancer to finalise the date, time, and place of settlement.
  4. You must deposit any applicable amount into your ANZ account three days before the settlement date.
  5. After the settlement is completed, your solicitor or conveyancer will send you a Statement of Adjustment confirming the disbursal of funds from your home loan amongst the involved parties.

Do you compare mortgages using the comparison or advertised rate?

A lot of Australians compare home loans using the advertised interest rate, which indicates how much interest you’ll be charged on your mortgage repayments. The lower your rate, the cheaper your home loan should be.

However, interest charges aren’t the only cost associated with home loans. Most mortgage lenders also charge fees on their home loans. A mortgage with a low interest rate and high fees can sometimes cost more than a mortgage with a high interest rate and low fees.

A home loan’s comparison rate combines the cost of interest with the cost of standard fees and charges into a single percentage rate. Mortgage lenders are required to display a comparison rate alongside their advertised rate to better indicate the home loan’s overall cost.

Keep in mind that to ensure consistency, all comparison rates are calculated assuming a $150,000 principal and interest mortgage with a 25 year term. As your home loan may be different, the comparison rate may not accurately reflect exactly how much your home loan may cost. Also, the comparison rate doesn’t include every home loan fee and charge, so it’s still important to compare home loans and read the fine print before you apply.

What is a mortgage rate?

The interest rate on a home loan is sometimes called the mortgage rate. This percentage indicates how much interest the lender will charge you with each home loan repayment. Your interest rate is effectively the “cost” of “buying” the money you’re using to buy a property – the higher your mortgage rate, the more your home loan repayments may cost.

Using a home loan calculator, you can estimate how much your home loan repayments may cost, based on your mortgage rate, loan term, and loan amount. This may also be affected by whether you’re making principal and interest repayments or interest-only repayments, if you have a fixed rate or variable rate mortgage, and any fees and other charges that may apply.

What is the ME bank home loan approval time?

To start the process of getting a loan with ME bank, you can fill out the online application form. You’ll have to provide information about your income details, assets and liabilities, and the property you want to buy.

Generally, the pre-approval of your loan application can happen within four hours, and in some instances, it may take up to two weeks. It’s important to remember this is only conditional approval.

If you make an offer and the seller accepts it, you’ll need to wait for the cooling-off period, which varies from two to five days depending on where you live. After that, it can take between six and eight weeks after contracts have been exchanged for your application for unconditional approval to be processed.