RACQ Bank Home Loan Review for Australian Expats

RACQ Bank Home Loan Options

RACQ Bank offers the following home loan products. Please note that these may not be available for borrowers from overseas. Speak with us to discuss your best options.

RACQ's variable rate loans offer flexibility and potential savings for borrowers who are comfortable with fluctuating interest rates. These loans provide the freedom to make additional repayments without penalty, allowing borrowers to potentially reduce their loan term and save on interest costs.

Key Features of RACQ Bank's Variable Rate Loans include the following.

  • Competitive Interest Rates: Variable rate loans offer competitive interest rates that may change over time, allowing you to potentially benefit from rate reductions.
  • Flexibility to Make Additional Repayments: You can make additional repayments without penalty, enabling you to accelerate your loan repayment and save on interest costs.
  • Transparent Interest Rate Changes: The bank provides clear and timely communication of interest rate changes, ensuring you are aware of any adjustments.
  • Variety of Repayment Options: You can choose from a range of repayment options, including weekly, fortnightly, and monthly payments, to suit your financial situation and preferences.

RACQ Bank's fixed rate loans loans provide stability and predictability for borrowers who prefer certainty in their monthly repayments. With fixed rate loans, borrowers can lock in an interest rate for a fixed period, protecting themselves from potential interest rate fluctuations.

Key Features of RACQ Bank's Fixed Rate Loans include the following.

  • Fixed Interest Rates: You can lock in an interest rate for a fixed period, typically ranging from 1 to 5 years, providing stability and predictability in your monthly repayments.
  • Protection from Interest Rate Fluctuations: Fixed rate loans shield you from the impact of rising interest rates, ensuring your repayments remain constant during the fixed period.
  • Variety of Fixed Rate Terms: You can choose from a range of fixed rate terms to suit your financial plans and risk tolerance.
  • Transparent Interest Rate Changes: The bank provides clear communication of interest rate changes at the end of the fixed term, allowing you to make informed decisions about your loan.

RACQ Bank offers a range of first home buyer loans designed to help Australians purchase their first home with affordable interest rates, waived fees, and flexible features. These loans cater to the specific needs of first-time homeowners, providing them with a smooth and cost-effective path to homeownership.

Key Features of RACQ Bank's First Home Buyer Loans are as follows.

  • Lower Interest Rates: First home buyers can enjoy competitive interest rates that are tailored to their circumstances, making homeownership more accessible.
  • Waived Fees: The bank waives establishment, annual, and ongoing fees for first home buyers, reducing upfront costs and making their loan more affordable.
  • Flexible Repayment Options: You can choose from a variety of repayment options, including weekly, fortnightly, and monthly payments, to suit your financial situation and preferences.
  • First Home Loan Deposit Scheme (FHLDS) Eligibility: The bank participates in the FHLDS, allowing eligible first home buyers to receive a government grant of up to $10,000 to help you save for a deposit.

RACQ Bank Home Loan Review

Here are the pros and cons of choosing RACQ Bank to buy property in Australia.

Pros Cons
Competitive interest rates
Primarily operates in only Queensland
Flexible repayment options
Potential customer service issues
Online and mobile banking services

Allow us to find you the perfect home loan.

Apply online to get expert recommendations with real interest rates and repayments.

Features of RACQ Bank Home Loans

RACQ Bank can help you get the following home loan features.

Feature Details
Offset Accounts
Allows you to link your savings accounts to your home loan, reducing the amount of interest you pay. By depositing funds into the offset account, you effectively reduce the outstanding balance of your home loan, leading to lower interest charges.
Redraw Facility
Allows you to access funds that have already been repaid on your home loan. This feature provides flexibility in managing finances, enabling you to withdraw funds for unexpected expenses or short-term needs.
Additional Repayments
Allows you to reduce your loan term and save on interest costs. You can make additional repayments without penalty, providing flexibility to accelerate your loan repayment.
Interest-Only Home Loans
Allows you to make repayments that only cover the interest accrued on the loan, not the principal amount. This can be beneficial if you are in the initial stages of property ownership or have short-term cash flow constraints.

Facts About RACQ Bank

The Royal Automobile Club of Queensland (RACQ) was founded in 1905 as a motoring association. In 1921, RACQ was granted the right to use the 'Royal' prefix by King George V. In 1979, RACQ launched its own insurance company.

In 2011, RACQ established the RACQ Foundation to assist community groups affected by natural disasters. In 2014, RACQ was inducted into the Queensland Business Leaders Hall of Fame. In 2017, RACQ merged with Queensland Teachers' Mutual Bank, forming RACQ Bank.

RACQ bank is the largest mutual bank in Australia, with over 1.7 million members and more than $15 billion in assets. It has been rated 'Excellent' by Canstar for its Everyday Savings Account for the past five years and awarded the Finder Innovation Award for its RACQ Smart Saver Account.

How Do I Apply for an Expat Mortgage with RACQ Bank?

Australian expats, permanent residents, or foreign investors living overseas can apply for an Australian expat home loan with RACQ Bank through the following steps.

  • Check Your Eligibility: To be eligible for an RACQ Bank expat home loan, you must meet their eligibility criteria, such as having a regular income from an overseas employer and providing a deposit of at least 20% of the appraised value of the property.
  • Gather the Required Documents: You will need to provide RACQ Bank with the required documents to support your home loan application, such as proof of income and proof of identity.
  • Get Help from a Mortgage Broker: You can apply for your home loan with the help of a specialist mortgage broker who will help you throughout the process.
  • Provide Additional Information and Documentation: Once you have submitted your application, the bank may ask you to provide additional information and documentation, such as more detailed information about your overseas employment.
  • Receive a Decision: The bank will typically assess your home loan application within 5-7 business days. If your application is approved, you will receive an offer of finance.
  • Complete Your Home Loan Application: Once you have received an offer of finance, you will need to complete your home loan application.
  • Settle Your Home Loan: Once your home loan application is complete, the bank will settle your loan. This means that the funds will be released to the vendor of the property you are buying.

Odin Mortgage can help you prior to application and beyond settlement. Contact us for the best chance of home loan approval!

Who is Eligible?

To be eligible for a home loan with RACQ Bank in Australia, you must meet the following general criteria:

  • Be an Australian citizen or permanent resident.
  • Have a regular income. This could be from employment, investments, or other sources.
  • Have a good credit history. RACQ Bank will assess your credit score and credit report to determine your eligibility.
  • Provide a deposit. The minimum deposit requirement for RACQ Bank home loans is 20% of the property value.
  • Meet the lending criteria for the specific home loan product you are applying for. This may include additional criteria such as age restrictions, property type restrictions, and employment restrictions.

Australian expats and Aussie permanent residents living overseas can get a home loan from RACQ Bank. The bank understands that the process of buying a home in Australia can be more complex for expats, so they have a dedicated team of expat specialists to help expats with their home loan applications.

To be eligible for an expat home loan with RACQ Bank, you must meet the following additional criteria:

  • Have a regular income from an overseas employer.
  • Be able to demonstrate that you have a genuine intention to return to Australia and live in the property you are buying.
  • Provide a deposit of at least 20% of the appraised value of the property.

Foreign investors living overseas may also be eligible for a home loan with RACQ Bank. However, the eligibility criteria for foreign investors are more restrictive than the criteria for Australian citizens and permanent residents.

To be eligible for a foreign investor home loan with RACQ Bank, you must meet the following additional criteria:

  • Have a valid visa for Australia that allows you to stay in Australia for at least six months.
  • Have a regular income from an Australian or overseas employer.
  • Provide a deposit of at least 30% of the appraised value of the property.

What Documents Do I Require?

RACQ Bank in Australia typically requires the following documents to support a home loan application from overseas applicants.

Proof of Identity

This includes documents such as passport or driver's licence, birth certificate, and marriage certificate or change of name certificate (if applicable).

Proof of Income

This includes documents such as pay slips from your overseas employer for the last 6 months, tax returns or assessments for the last 2 years, employment contract or letter from your employer stating your employment details and income, and bank statements showing your regular income deposits.

Proof of Address

This includes documents such as utility bills (electricity, gas, water), bank statements with your overseas address, and lease agreement or rental statement.

Property Documentation

This includes documents such as the purchase contract, valuation report, council rates, and building insurance.

Financial Documentation

This includes documents such as savings account statements, investment statements, superannuation account statements, credit report, and tax file number (TFN) confirmation.

Additional Documentation

This depends on your individual circumstances and includes documents such as evidence of your intention to return to Australia and live in the property, details of any dependents you have, information about your overseas employment and employer, and evidence of any guarantors (if applicable).

It is advisable to contact a specialist mortgage broker for the most up-to-date and accurate information on the specific documents required for your home loan application from overseas.

Other Related Products from RACQ Bank

Construction Loan

Construction loans are designed to help you finance the construction of a new home in Australia. They offer flexible features such as the following.

  • Progress Payments: You can draw down funds as the construction progresses, ensuring that they only pay interest on the money they have used.
  • Fixed and Variable Rate Options: You can choose between fixed and variable interest rates to suit their risk tolerance and financial goals.
  • Extended Loan Terms: These typically have longer loan terms than standard home loans to accommodate the extended construction period.

These loans are available to both Australian residents and expats. Expats may need to provide additional documentation to support their application, such as evidence of their intention to return to Australia and live in the property once it is completed.

Investment Loan

Investment loans are designed to help you finance the purchase of an investment property in Australia. The loans offer competitive interest rates and features such as the following.

  • High LVRs: The bank offers LVRs of up to 95% for investment loans, allowing resident borrowers to invest with a smaller deposit.
  • Interest-only Repayments: Investors can choose to make interest-only repayments for an initial period, reducing their upfront costs.
  • Flexible Loan Terms: Investment loans are available with a variety of loan terms to suit different investment strategies.

These loans are available to both Australian residents and expats. Expats may need to provide additional documentation to support their application, such as evidence of their overseas income and assets.

Need a Mortgage With RACQ Bank?

RACQ Bank is a strong contender for Australian expats who are looking to purchase property in Australia. The bank’s simplified application process and competitive rates make it an attractive option for overseas Australian expats, permanent residents and foreign investors. However, the bank’s limited geographic coverage and its customer service reviews are potential drawbacks to consider.

We can help you secure your overseas home loan with RACQ Bank or any other lender that could be more suitable for your specific circumstances. Please speak with us today to discuss your situation and requirements!

Other Australian Lender Reviews

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Apply online to get expert recommendations with real interest rates and repayments.

FAQs About (LENDER)

Yes, many banks, including RACQ Bank, may offer home loans to Australian expats. However, eligibility criteria may vary, and it’s advisable to check with the bank for specific requirements.

Documentation requirements can include proof of identity, proof of income, tax returns, employment contracts, and information about the property being purchased. Expats may need to provide additional documentation related to their overseas residency.

The bank may assess the income of expats differently, considering factors such as currency exchange rates and the stability of the expat’s income source. Contact our mortgage brokers to discuss the details of how they will assess your income.

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