RACQ Bank has launched a new low-rate variable home loan, calling it a “spicy” product suitable for owner-occupiers and investors who just want the basic, no-frills option.
Dubbed the Fair Dinkum Home Loan, the new product is available for Queenslander owner-occupiers and investors looking to buy a new home or refinance their existing mortgages from RACQ.
The new home loan has no establishment, annual, or monthly fees but also does not have redraw and offset facilities.
First-home buyers can enjoy loan terms of up to 40 years for the Fair Dinkum loan.
For borrowers who want to take advantage of loan features, they can opt to get a split loan option, where one part of their loans will be under the 'Fair Dinkum' terms while the other can access other services such as the offset or redraw facilities.
RACQ group executive for banking Michelle Winzer said this new loan is part of the bank’s commitment to help members get ahead their goals amid the current economic conditions.
“We know people are feeling the pressure of increasing living costs but are still ambitious about reaching their property goals, whether they’re a first-home buyer, investor or looking for a change,” she said.
The rates under the Fair Dinkum Home Loan are as follows (as of 29 August 2022):
- Fair Dinkum Home Loan for Owner-occupiers ≤70% LVR – 3.64% p.a. (3.64% p.a. comparison rate)
- Fair Dinkum Home Loan for Owner-occupiers >80% to ≤95% LVR including LMI – 4.24% p.a. (4.24% p.a. comparison rate)
- Fair Dinkum Home Loan for Owner-occupiers >70 to ≤80% LVR – 3.84% p.a. (3.84% p.a. comparison rate)
- Fair Dinkum Home Loan for Investors ≤70% VR – 3.84% p.a. (3.84% p.a. comparison rate)
- Fair Dinkum Home Loan for Investors >80% to ≤90% LVR including LMI – 4.44% p.a. (4.44% p.a. comparison rate)
- Fair Dinkum Home Loan for Investors >70% to ≤80% LVR including LMI – 4.04% p.a. (4.04% p.a. comparison rate)
Here are some of the features of the Fair Dinkum Home Loan for each borrower type:
|
Features |
Owner-Occupier |
Investor |
|
Fees |
No fees |
No fees |
|
Additional repayment |
Unlimited |
Unlimited |
|
Maximum LVR inclusive of LMI |
95% |
90% |
|
Maximum loan term |
30 years 40 years (first-home buyers) |
30 years |
|
Split loan |
Available |
Available |
|
Payment option |
Principal and Interest |
Principal and Interest |
|
Approval Time |
Under a week |
Under a week |
—
Photo by kanchanachitkhamma on Canva.
Share