RACQ Bank slashes home loan rate

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

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 variable rate home loans from next week.

“On an average home loan of $340,000 Queensland households can expect to save around $50 per month.”

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 our loan repayments the same when interest is low you can chip away at your 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 is 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”.