RACQ Bank leaves rates on hold

RACQ Bank has reassured members it had no plans to increase its market-leading, low rate variable interest rate in the short-term, following out-of-cycle home loan rate hikes by three of Australia’s big four banks.

At a time of interest rate uncertainty for many mortgage holders, the Queensland-based mutual bank announced it had no reason to increase rates at this time, and therefore wouldn’t make any changes.

RACQ Bank CEO Michelle Bagnall said the bank understood the cost of living pressures on Queensland families and would always act in the best interests of its members.

“At this time, we see no reason to increase our variable rate – so we won’t be,” Ms Bagnall said.

“We work to maximise value for our members rather than profits, that’s what is different about RACQ Bank.

“We understand many other financial institutions need to make this change at this time, but as a mutual organisation, we have the ability to always act in the best interest of our members.

“We’ve weighed up the options and decided that at this stage our members need stability more than we need a rate increase.

“Many Queensland families are struggling with high transport costs and living expenses, so we want to make every effort to take our members into the expensive festive season without additional financial pressures.”

RACQ Bank’s Mortgage Saver Special had a variable rate of 3.62 percent with no establishment, annual or account keeping fees.