Loans FAQs

A Comparison Rate is an interest rate that indicates the true cost of a loan. This rate incorporates certain fees and charges that are applicable for the chosen product, and also takes into account what the interest rate will be after any introductory periods are finished.

If you’re thinking of applying for a home loan, you have several options to available to get things started.

Enquire online: visit our online Home Loan Enquiry Form.

Visit a Bank branch: view our RACQ Bank branch finder to find your nearest RACQ Bank branch, and drop in to speak with one of our home loan specialists.

Book a mobile lender: our team of mobile lenders are available to come to your home or work to discuss our range of home loan products.  For more info or to make a booking, visit our Mobile Lenders page.

Call us: drop us a line on 13 1905 to discuss your home loan application options.

RACQ Bank Car Loans are designed specifically for buying a new or used car, boat, caravan or jet ski to name a few. These have a very attractive interest rate, which is enabled by us taking security over the item being purchased. 

RACQ Bank Personal Loans are designed for a wide range of purposes; such as renovations, a holiday or debt consolidation, with no security requirement. 

 

Yes. As an RACQ Bank member, you are entitled to pay more than the minimum repayment amount, increase the frequency of your repayments or pay out your loan early without penalty. 
Many of our home loans have redraw facilities. The benefits of a redraw facility to you are largely dependent on other features that other home loans may or may not have. To compare our home loans and their features, Visit our Home Loan Comparison Page.

RACQ Bank takes into many different factors when pricing loans. The official cash rate set by the Reserve Bank of Australia, funding costs, loan type, risk associated with the product and broader factors in the economy all play a part in the pricing decisions being made. RACQ Bank always strives to provide value for its members.

RACQ Bank Car Loans are designed specifically for buying a new or used car, boat, caravan or jet ski to name a few. These have a very attractive interest rate, which is enabled by us taking security over the item being purchased. 

RACQ Bank Personal Loans are designed for a wide range of purposes; such as renovations, a holiday or debt consolidation, with no security requirement. Personal loans therefore attract a higher rate of interest.

For RACQ Bank’s complete list of lending rates, visit our Loan Rate Schedule.

How is interest calculated on my home loan?

For a full, easy-to-follow table of your RACQ Bank loan’s fees and charges, download our Fees and Charges Schedule, or visit our Loans Rate Schedule page.
If you have noticed transactions on your credit card that:
  • You don’t recognise,
  • Don’t match the payment amount,
  • Are recurring debits that were previously cancelled,
  • Are duplicated, or
  • Are for goods or services you did not receive.

Call 1300 912 667, or visit Card Services and we will commence an investigation into your dispute.

To help us resolve disputes as smoothly as possible, we will need information such as the date of transaction, merchant name and location.  If we require any additional info during the process, we will let you know.

If, at resolution, your disputed transaction is paid, we’ll credit the funds directly to the card it was debited from. 

RACQ Bank Personal Loans allow our members to apply for loans up to $60,000, with a maximum term of 5 years.

The borrowing amount you qualify for depends on your individual circumstances; such as your employment history, verification of documents and credit score.

For more information visit our Personal Loans page, drop into an RACQ Bank branch, or launch our Personal Loan application form to apply.

RACQ Bank Car Loans allow our members to apply for loans up to $60,000, with a maximum term of 7 years for cars under 2 years old.

The borrowing amount you qualify for depends on your individual circumstances; such as employment history, verification of documents and credit score. 

Secured loans require you to provide security to obtain the loan. In the instance of a home loan, the security is the property in question; car loans use the vehicle being purchased as security. Secured loans provide banks with a lower risk, and therefore lower pricing is generally offered.

 

An unsecured loan does not require security; however, this usually comes with a higher interest rate.

A guarantor is a person linked to a loan by a guarantee of security. When the borrower has a limited deposit or equity available to obtain a loan, the guarantor provides additional security to help the boost the equity available to secure the loan. A guarantor is not a co-applicant, but the security they provide may be at risk should a default occur. Guarantors are generally someone in your immediate family.

See our Guarantor Guide, or drop into an RACQ Bank branch for more information on what it means to be a guarantor.

No, you do not have to be an RACQ member to apply for a home loan. Remember, as with all membership-eligible RACQ Bank products, you will automatically become an RACQ member in taking out a home loan with us.

To apply for a home loan, you will need a deposit. Your deposit can take the form of cash, or a mixture of cash and equity. Equity is the difference between the value of your home and how much you owe on it.

If your home increases in value over time as you continue to make repayments, so does your equity. For example: if you purchased a property for $400,000 which is now valued at $500,000 and you have repaid $50,000 since purchasing it, you have $150,000 in equity ($50,000 you have repaid + $100,000 value increase).

In addition to propping up your home loan deposit, equity can be used to supplement a deposit for an investment property, a new car or home renovations to name a few. Depending on your financial circumstances and the advice of your finance or tax advisors, you may be able to unlock the equity in your assets provided you can still meet your regular loan repayments.

Talk to us or drop into your nearest RACQ Bank branch for more information on how you can take advantage of your equity.

An offset feature lets you link your transaction account to your home loan. The funds in your transaction account are offset against your home loan balance and you are only charged interest on the net balance of the two accounts. What that means is the funds in your transaction account work to reduce the interest charged on your home loan.

For example, if your home loan balance is $400,000 and your linked Everyday Mortgage Offset Account balance is $50,000, the interest calculated on your home loan for that day will be on the net balance of $350,000. This will you help you save money and pay your home loan off sooner.

Our Offset Account combines all the benefits of our Everyday Account while providing the benefits of a 100% mortgage offset.

Check out which of our home loan options you can get an offset account with on our Compare Home Loans page.

For more information, give us a call on 13 1905 or drop into an RACQ Bank branch.

Generally, home loans with an offset feature have a higher interest rate than home loans that do not have an offset feature. You should consider the benefits of an offset account with a slightly higher interest rate compared to your financial position if you did not have an offset, and therefore having a home loan with a lower interest rate.

Visit our Loan Rate Schedule for up-to-date interest rate comparisons between our range of home loans.

Members with a Mortgage Breaker or Fixed Rate Home Loan may pause their repayments. Note that a pause in repayments does not mean you will have a temporary forfeiture of repayment responsibility, rather your loan repayment is deferred and added to the next repayment date.

Members with a Mortgage Saver or Mortgage Breaker home loan may make unlimited additional repayments. Fixed Rate Home Loans allow a maximum annual repayment top-up of $10,000.
Lenders Mortgage Insurance (LMI) is a one-off insurance payment which banks generally require you to pay if you have a smaller deposit.

The Loan to Value Ratio (LVR) is the amount you are borrowing represented as a percentage of the value of the property being used as security for the loan. Our maximum LVR on home loans is 80%, however, for Owner Occupiers with Lenders Mortgage Insurance (LMI) up to 95%, LVR can be considered.

RACQ Bank takes into many different factors when pricing our home loans. The official cash rate set by the Reserve Bank of Australia, funding costs, risk associated with the product and broader factors in the economy all play a part in the pricing decisions being made.  RACQ Bank always strives to provide value for its members.

For RACQ Bank’s complete list of lending rates, download our Loan Rate Schedule.

RACQ Bank is always open to discussing options to help tailor your home loan repayments. 

To discuss if a variable and fixed split-rate home loan is suitable for your needs, phone us on 13 1905, or visit your nearest RACQ Bank branch.

There is no charge for one of our Mobile Lenders to come to you and all advice is obligation-free.
You will have an initial visit with your Mobile Lender to discuss your requirements and work through the application process. From there, your Mobile Lender will stay in contact with you via phone or email to provide updates along the way. Additional visits can be arranged at your request.

Members with a Mortgage Breaker or Fixed Rate Home Loan may pause their repayments. Note that a pause in repayments does not mean you will have a temporary forfeiture of repayment responsibility, rather your loan repayment is deferred and added to the next repayment date.

Generally, home loans with an offset feature have a higher interest rate than home loans that do not have an offset feature. You should consider the benefits of an offset account with a slightly higher interest rate compared to your financial position if you did not have an offset, and therefore having a home loan with a lower interest rate.

No, you do not have to be an RACQ member to apply for a home loan. Remember, as with all membership-eligible RACQ Bank products, you will automatically become an RACQ member in taking out a home loan with us.

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Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. 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 Financial Services Guide and 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 is only available for new lending to RACQ Bank. Customers with an existing home loan can switch to Mortgage Saver with a minimum $20,000 in additional new lending.

RACQ Bank provides customers with credit assistance in relation to the RACQ Bank Credit Card and also gives assistance to customers in relation to credit limit increases for the Card. RACQ Bank assists customers as part of our arrangements with the card issuer, Citigroup Pty Limited.

Fees and charges apply. Terms and conditions apply and are available at https://www.cardservicesdirect.com.au/cardservices/useful_forms.htm. Citigroup’s credit criteria apply. Current Card Services Credit Card holders are not eligible to apply for introductory offers. Offers are available to customers who submit their application by 31 January 2019 and may be extended.

The 0% p.a. promotional interest rate applies to balances transferred with this offer at the point of application, for a period of 14 months for the RACQ Platinum Rewards Credit Card and 12 months for the RACQ Low Rate Credit Card once the balance transfer is processed. At the end of the promotional period, any outstanding transferred balances will revert to the variable Annual Percentage Rate for cash advances, currently 21.74% p.a. Your total balance transfers with this offer may not exceed 80% of your credit limit.

Card Services is a division of Citigroup Pty Limited ABN 88 004 325 080, AFSL No. 238098, Australian credit licence 238098 (Citi). Citi is the credit provider and issuer of RACQ Bank Credit Cards (Credit Cards). Members Banking Group Limited ABN 83 087 651 054 trading as RACQ Bank (RACQ Bank) promotes the Credit Cards, and assists cardholders, as Citi’s agent, under an agreement with Citigroup. RACQ Bank does not and will not guarantee or otherwise support Citi’s obligations under the contracts or agreements connected with the Credit Cards.