Flexible loans help first home buyers turn the key

New research from RACQ Bank has revealed more than four in five (83%) Queenslanders are prioritising owning a home over other financial goals¹.

Of those surveyed, 74% of people find specialised products suited to first home buyers an important factor when choosing a home loan provider.

RACQ Chief Executive Banking Barney Burke said there are options available to help first home buyers enter the market faster.

“We know Queenslanders are not only feeling the pinch of cost-of-living pressures but are finding it difficult to achieve the goal of owning their first home in the face of high property prices and interest rates,” Mr Burke said.

“Despite the challenges, our survey found nearly one in five (18%) of Queenslanders are currently saving for or actively looking to purchase their first home.

“Choosing flexible home loan products that offer extended loan terms at a competitive interest rate, 95% Loan-To-Value Ratio and no establishment or monthly fees can make a difference in helping first home buyers enter the property market.”

Mr Burke encouraged those looking to enter the market to reach out to their bank or mortgage broker.

“We know the process of looking for a home can be stressful and everyone’s situation is different,” Mr Burke said.

“It’s important to reach out to a mortgage broker or your bank to ensure the loan term is right for you.”

RACQ Bank has a range of flexible loan options to help first-time buyers.

Up to 40-year home loan term

Offering a loan term longer than the usual 30 years for first home buyers has only been introduced by a handful of banks, including RACQ Bank. It allows those entering the property market for the first time to increase their borrowing capacity, however it does mean the loan requires an extra decade of repayment and interest. While it might mean extra repayments in the long term, it could be the difference between entering the property market and missing out. Buyers also have the option to make additional payments over the course of the loan term to reduce the total interest.

95% Loan-to-Value Ratio (LVR) on owner occupied loans

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. By offering a 95% LVR, RACQ Bank only requires a 5% deposit² for owner-occupied purchases. In addition, Lenders Mortgage Insurance can be added to the loan, meaning you don’t have to save for an extra cost.

RACQ Bank research found nearly half (44%) of Queenslanders viewed saving for a deposit as the biggest challenge when attempting to buy a first home, so halving a deposit to 5% can result in buyers entering the market sooner. At RACQ Bank this can be combined with the extended loan term for first-time buyers.

No establishment, settlement or document preparation fees

By opting for a home loan with low or even no establishment fee could save you hundreds of dollars. Similarly, ensuring there are no hidden annual or monthly fees will save home owners from paying more than their mortgage repayments. RACQ Bank’s Fair Dinkum Variable Home Loan³ offers first home buyers the flexibility of no annual or monthly fees and no document preparation and settlement fee.

Choosing a competitive home loan and interest rate that works for you

Just as important as a flexible loan term is securing a competitive interest rate. By comparing loan terms and interest rates, either yourself or through a mortgage broker you can ensure the home loan you choose works best for you. RACQ Bank offers competitive interest rates across a range of products, including the Fair Dinkum Variable Home Loan3.

In 2025, RACQ Bank took out multiple Canstar awards for outstanding value in the categories of fixed home lender, investment home lender, investment variable home lender and investment fixed home lender.

Find out how RACQ Bank can help you reach your financial goals.

^{_{This is general advice and may not be right for you. 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, and consider if appropriate for you before deciding.}}

^{_{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 is general advice only and may not be right for you. 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, and consider if appropriate for you before deciding.}}

_{¹Survey findings from RACQ Quarterly Consumer Omnibus, FY25 Q3, n=73}

_{²5% deposit of the property value excluding LMI and all other government fees & charges.}

_{³Fair Dinkum Home Loan is available for new lending only. Members of RACQ with an existing home loan can switch to Fair Dinkum Home Loan with a minimum $20,000 in additional new lending.}