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RACQ Bank cuts home loan rate

RACQ would put Queensland homeowners first and pass on the full rate cut announced today by the Reserve Bank of Australia (RBA).

RACQ Bank CEO Michelle Bagnall said as a mutual lender the bank operated for the benefit of its members and passing on the rate cut was the right thing to do.

“It’s not a decision we’ve taken lightly but we believe it’s the right thing for our members,” Ms Bagnall said.

“The new rate will come into effect on our home loans from next week.

Ms Bagnall said the move would help existing homeowners get ahead on their mortgage and may help open the door to people entering the housing market for the first time.

“Our focus is on helping our members get ahead and a great way to do this is by paying off their mortgages sooner,” she said.

“While interest rates are low it’s a great opportunity to get ahead. By keeping your loan repayments the same when interest rates are low you can chip away at your loan balance more quickly.

“It’s also been tough for first home buyers to get into the market for a while. This cut will help but we strongly advise whatever loan you take now, make sure it’s the right one, not just for today but for tomorrow.”

Ms Bagnall said while those with loans would benefit from the RBA’s decision, the same may not be the case for Queenslanders with deposits.

“While the news is good for people with a home loan, it’s potentially going to impact those with deposits,” she said.

“If you’re a self-funded retiree who relies on the income from those deposits make sure you’re getting the best return you can”.

3.19% home loan interest rate

Mortgage Saver Special Home Loan

A straight-up home loan that offers a competitive variable rate and comes with the RACQ service you know and trust. 

  • No establishment fee
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Owner occupiers, principal and interest only, up to 95% LVR with LMI, new lending only.

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Important information Show more

Loans are issued by Members Banking Group Limited ABN 83 087 651 054 AFSL and Australian credit licence 241195 trading as RACQ Bank. This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Terms and Conditions, before deciding.

Except for RACQ Bank, any RACQ entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of RACQ Bank. RACQ Bank does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.

Mortgage Saver Special is available for home loan applications received from 10 July 2019. Available to new RACQ Bank home loan customers only. Existing RACQ Bank home loan customers can switch to Mortgage Saver Special with a minimum $20,000 in additional lending.

Terms, conditions, fees, charges and normal lending criteria apply.

Comparison rate is based on a secured loan amount of $150,000 with monthly repayments over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.