Rate cut sees RACQ Bank remain one of the most competitive

As the Reserve Bank of Australia (RBA) made the decision to reduce the official cash rate to an unprecedented level, RACQ Bank has delivered an interest rate cut of 17 basis points to variable interest rate home loans.

RACQ Bank spokesperson Paul Turner said the bank would remain one of the top three bank lenders for variable home loans in the country with a rate of 2.87 percent.

“We’re proud to pass on as much of the cut as possible, and this keeps our rate as one of the most competitive in the market,” Mr Turner said.

“Now is the right time to look at your mortgage and find out if you’re getting the best out there – there are some incredible rates available, so take advantage of them.

“If you don’t have a two in front of your variable rate, you really should be shopping around for a better deal.”

Mr Turner said while the cut was great for mortgage holders, it put pressure on smaller lenders, like RACQ, who were trying to offer the best rates to members.

“We’re looking to find the right balance between offering members great value for their loans, while making sure members who rely on their savings are in the best possible position,” he said.

“This challenge has been impacted by the struggles the Australian economy has faced as a result of summer bushfires and soft growth, and now we’re facing global challenges due to coronavirus.

“Small banks like us are trying to be as competitive as possible, but the increased cost of responding to regulatory changes will make it difficult to remain this way. If we’re to keep pushing for better competition for consumers, we need the Federal Government to step up and even the playing field.

“Despite all of these challenges, we’re proud to have one of the most competitive rates in the country.”