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RACQ Bank cuts home loan rate again

The new variable home loan comparison rate of 3.19 percent has come into effect this week.

RACQ spokesperson Paul Turner said the decision had been made to benefit members of the Queensland-based bank, many of whom struggled with rising cost of living pressures.

“This has been a really tough decision for our business, but when we put our members first, it’s made easy,” Mr Turner said.

“While interest rates are low, it’s a great opportunity for Queenslanders to get in and pay off their mortgages sooner.

“However, new mortgagees need to be careful not to borrow too much now while rates are historically low – you must be able to make your payments when the rates start going up again as well.”

While the bank committed to the cut, Mr Turner said the Federal Government needed to carefully consider how the regulatory costs from the Royal Commission impacted smaller players in the market.

“Commissioner Hayne made the point customer-owned institutions could cop the brunt of regulation on the back of big banks’ mismanagement and greed, but now we’re the ones having to pay for it,” he said.

“Our regulatory levy has gone up by 14 percent and this hits a bank of our size very hard.

“We need banking competition in Australia, but it’s not just about having more players in the market, it’s about ensuring each and every player has an equal opportunity to compete.

“We estimate that for every basis point the Big Four doesn’t pass onto households, they retain about $137 million in margin.

“We need the Federal Government to take its foot off our necks by reducing the unfair levy we, the little guys, pay, so we can be a competitive alternative to the Big Four.”

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
  • No ongoing fees
  • Unlimited additional repayments
  • Split loan option available
  • Free redraw

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.