- RACQ Bank prioritises competitive home loan interest rates and relatively low fees
- The bank offers a 40-year home loan option to first home buyers
- It also allows borrowers to combine lenders mortgage insurance into their loan value if needed
The Royal Automobile Club of Queensland (RACQ) was formed in 1905 at a meeting of almost all the motorists in Brisbane at the time - 18 people to be exact.
Many years later, RACQ is Queensland's largest club by membership and a mutual organisation that provides many services and products to its members, covering roadside assistance, insurance, travel, and - as of 2017 - banking.
RACQ Bank was formed with a merger of Queensland Teachers Mutual Bank which started out as the Queensland Teachers Credit Union in 1965. As a mutual bank, RACQ Bank reinvests its profits back into its operations in a bid to provide "fairer banking alternatives" for its members. It offers the full range of banking services, including home loans.
Proposed sale of RACQ Bank to Bendigo Bank
Note: RACQ has announced the sale of its retail lending and deposit business to Bendigo Bank although this is subject to regulatory approvals.
If the sale proceeds, the transition of RACQ Bank's products and customers to Bendigo Bank is expected to take place in late October 2026.
RACQ Bank home loan products
RACQ Bank caters for both owner occupiers and investors with the usual options of variable- or fixed-rate loans and principal and interest (P&I) or interest-only (IO) repayments.
Its products include:
Fair Dinkum Home Loan (its lowest-rate home loan without a redraw facility or offset account)
Mortgage Saver (variable-rate home loan with redraw)
Mortgage Breaker (variable-rate home loan with redraw and offset, available to new borrowers only)
RACQ Bank home loan interest rates
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.89% p.a. | 5.89% p.a. | $2,962 | Principal & Interest | Variable | $0 | $550 | 60% | |||||||||||||
5.99% p.a. | 5.99% p.a. | $2,995 | Principal & Interest | Variable | $0 | $550 | 70% | |||||||||||||
6.04% p.a. | 6.04% p.a. | $3,011 | Principal & Interest | Variable | $0 | $550 | 80% | |||||||||||||
6.09% p.a. | 6.09% p.a. | $3,027 | Principal & Interest | Variable | $0 | $550 | 60% | |||||||||||||
6.09% p.a. | 6.13% p.a. | $3,027 | Principal & Interest | Variable | $0 | $550 | 60% | |||||||||||||
6.14% p.a. | 6.18% p.a. | $3,043 | Principal & Interest | Variable | $0 | $550 | 80% | |||||||||||||
6.19% p.a. | 6.23% p.a. | $3,059 | Principal & Interest | Variable | $0 | $550 | 70% | |||||||||||||
6.19% p.a. | 6.19% p.a. | $3,059 | Principal & Interest | Variable | $0 | $550 | 70% | |||||||||||||
6.19% p.a. | 6.19% p.a. | $3,059 | Principal & Interest | Variable | $0 | $550 | 90% | |||||||||||||
6.09% p.a. | 6.13% p.a. | $3,027 | Principal & Interest | Variable | $0 | $550 | 70% |
RACQ Bank loan features
All RACQ Bank home loans come with:
- no annual or monthly fees
- no establishment fees for Fair Dinkum Home Loan
- split loan option (but not during a fixed-rate term)
- up to 40-year home loan terms for first home buyers (up to 30 years for other borrowers)
- availability of 5% deposit option for eligible borrowers
- a maximum loan-to-value ratio (LVR) of 95% for eligible borrowers (excluding lenders mortgage insurance (LMI) and government fees and charges)
- option of including LMI in the loan amount for eligible borrowers
- unlimited additional payments (except when the loan is on a fixed rate when maximum extra repayments are capped at $10,000 a year)
- loan top-up availability
- RACQ membership and eligibility for member discounts
RACQ Bank loan fees
Fair Dinkum loans come with no document preparation and loan settlement fees
$550 document preparation and loan settlement fees for Mortgage Saver, Mortgage Breaker, and fixed home loans (as at July 2026)
- No annual, monthly fees on any RACQ Bank home loan
See also: Navigating home loan fees
"We know Queenslanders are not only feeling the pinch of cost-of-living pressures but are finding it difficult to achieve the goal of home ownership in the face of high property prices. "At RACQ Bank, we are committed to supporting prospective buyers in any way we can by offering competitive interest rates across a range of home loan products. "We also offer flexible features and options, many of them aimed at helping first home buyers enter the market sooner, including:.jpg)
Low home loan interest rates
Who can take out an RACQ Bank home loan?
While most RACQ Bank borrowers are from Queensland, being from outside the state or buying a property beyond the state borders may not necessarily discount you from taking out an RACQ Bank home loan. Applications can be considered on a case-by-case basis.
As well, anyone taking out an RACQ Bank loan will automatically become an RACQ member gaining access to a range of benefits including discounts on fuel, holidays, and shopping through the organisation's Member Benefits platform.
RACQ Home Loans - Pros & Dons
Pros
- Competitive interest rates: RACQ Bank prioritises keeping its home loan rates low
- Reduced interest rates for some members: Some RACQ members are eligible for interest rate discounts
- Low deposit options: Up to 95% LVR loans for eligible borrowers
- Low fees: Comparatively low home loan fees, including no establishment fees on Fair Dinkum home loans
- 40-year home loan terms: Designed to help eligible first home buyers get into the market
- Option of including LMI in the loan amount: May benefit those with low deposits to secure a loan
- Flexible options: Choice of variable, fixed, and split loans and flexible repayments for variable-rate loans
- Queensland-based call centre
Cons
- Geographical limits: Loans generally restricted to Queensland purchases in most circumstances (but some interstate purchases will be considered)
- No guarantor loans: Not the lender if you're needing a guarantee from a family member or friend
- Reluctant to consider applications with unusual circumstances: May not be the best lender if your financial situation is not straightforward
"RACQ is a strong, highly trusted Queensland brand. Although RACQ is a small bank, it has good, solid lending products, strong pricing, and has the option of a 40-year home loan that not many other lenders offer. "As a smaller lender, it is perhaps better at dealing with more straightforward, non-complicated applications. "While lending is pretty much restricted to Queensland, it can be a competitive option for homebuyers in the state with its well-priced interest rates."
What the broker says
How to apply for an RACQ home loan
Potential borrowers can:
- Enquire face to face at an RACQ store
- Arrange a visit with a mobile home lender at a convenient time and location
- Speak to a home lending specialist over the phone
Documents to have ready
Income
- PAYG: Two most recent payslips
- Self-employed: Two years financial statements and two years tax returns prepared by accountant
- Rental confirmation (existing property): Copy of lease agreement or rental statements from managing agent
- Evidence of any investment income: Shares, dividends, etc.
- Government benefits: Statement of benefits from Centrelink
Assets
- Details of other properties: if applicable
- Superannuation details: only required if requested
Expenses
- Bank statements: Details of past three months transactions and savings account statements
- Credit cards: Most recent statements covering minimum of three months
- Other loans: Details of minimum period of six months on other home loans, personal loans, car loans, etc.
Other documents
- Identification: Current Australian drivers licence and Australian passport
- Property purchase: Signed and dated copy of full contract
- Details of genuine savings: Most recent statements covering three months of evidence of regular savings history
- First Home Owners Grant: Copy of signed and dated application if applicable
- Certificate of Insurance