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Reduce Home Loans - 2.19% Variable Rates, 80% LVR, Unlimited Extra Repayments

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Reduce Home Loans - 2.19% Variable Rates, 80% LVR, Unlimited Extra Repayments
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pyramid on 16/06/2020 - 07:50 reduceloans.com.au (246 clicks)
Last edited 16/06/2020 - 08:04

Reduce Home Loans - 2.19% Variable Rates, 80% LVR, Unlimited Extra Repayments

Must be approved by 31/Jul/2020.
Rate 2.19% p.a. Variable
Purpose Owner Occupied
Eligibility Personal
Minimum Amount $50,000
Maximum Amount $850,000
LVR 80% for purchases and refinances
Loan Term Up to 30 years
Rate Options Variable
Available for Construction No

Cost:
Application Fee $440
Third Party Valuation Fee - At cost Estimate $250
Third Party Legal Fees - At cost Estimate $330
Does not cover government charges, Funder's Contract Processing Fee & PEXA Fee

FEATURES
Multiple Accounts - No
Redraw Facility - Yes. No minimum via electronic transfer
Account Access - Internet & Phone transfer access to nominated account
Statements - Half yearly

REPAYMENTS
Type Principal & Interest
Frequency -Via Direct Debit - Weekly, Fortnightly or Monthly
Methods - Direct Debit,Salary Credit
Additional Repayments - Variable Rate – Extra repayments may be made at any time without penalty

Financial Home Loan

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closed Comments

  • guidedlight on 16/06/2020 - 07:56

    Who is the lender?

      • isaw on 16/06/2020 - 08:30
        +8

        No, its not. I have a loan through reduce and the actual lender is Bendigo bank. So the above is a legit question, and your answer is not helping in any manner whatsoever.

        • dcep on 16/06/2020 - 12:21

          they broker from multiple different lenders for different name homeloan products

      • Poolprouk on 16/06/2020 - 10:23
        +1

        Username does not check out

      • wise penny on 16/06/2020 - 11:23

        Thanks guys. Seems I had a bl_nd_ moment.

    • MrTwin on 16/06/2020 - 10:30
      +1

      They're connected to MortgageEzy

    • xeion on 16/06/2020 - 11:04

      Could also be Origin MMS or Bank SA

    • thydzik on 16/06/2020 - 12:26

      various wholesale lenders such as Origin, Bendigo Adelaide Bank, Pepper, LaTrobe, Sintex and BC Funding

  • dixy on 16/06/2020 - 08:10

    Whats the comparison rate

    • OMG Bargain on 16/06/2020 - 08:35
      -3

      2.19% Comparison Rate

  • chutibuti on 16/06/2020 - 08:19

    So “ Reduce Home Loans“ offer Reduce Home Loans ??

  • Gooreb on 16/06/2020 - 08:39

    Reduce Home loans is backed by Bendigo Bank I believe.

  • Anth0ny on 16/06/2020 - 08:54

    no rebate?

    • Anth0ny on 16/06/2020 - 08:54

      is this fully offset?

  • Kharn83 on 16/06/2020 - 09:05
    +6

    Be aware that they will likely increase rates substantively more than the banks a year or so after you join. I was with them before and it happened consecutively to the point it became so high it was cheaper to go with one of the big 4…

    They also charge a circa 1000 "admin" fee for leaving.

    • Alan Laz on 16/06/2020 - 09:06
      +1

      Thanks Kharn83- very useful information

  • damz on 16/06/2020 - 09:13
    +9

    I would stay away from these guys.
    They do not respect customer's time, it takes multiple follow ups for them to respond & they perform wrong assessment and charge you unexpectedly and unethically. I went to financial ombudsman to get my money back from them which they had to then return.

    Do yourself a favour and avoid these guys.

    https://www.ozbargain.com.au/node/522154

    • Kharn83 on 16/06/2020 - 09:17

      Thanks for sharing damz - as a customer I didn't have a good experience with them either - I think I was charged an extra $150 fee which I never got returned either…

    • ufoninja on 16/06/2020 - 09:18

      Thanks for the warning. How do they stay in business? Didn’t we have a royal commission into that crap?

  • OMG Bargain on 16/06/2020 - 09:24
    +1

    My advice is to consider Athena Home Loans for a better long term refinance option. I just switched over to them. Goodbye CBA and fees!

    • Kharn83 on 16/06/2020 - 09:54

      Agree, when I moved from reduce I was considering Athena or wellhomeloans - both whom are transparent with the rate changes for their existing customers

      I went with wellhomeloans in the end due to an offset account feature

      • Trishool on 16/06/2020 - 09:57

        How long ago did you move over to wellhomeloans? And how are you finding them so far? An offset account is something I'd be interested in.

        • twohip on 16/06/2020 - 14:22

          I've been with Well Home Loans for like 6 or 7 months and they've been nothing short of fantastic. Moved over from ING and can say much better service, lower rate and fees (I went with the offset) and the banking is basically Adelaide bank with a Well Home Loans logo in the top. Adelaide bank's internet banking is horrible compared to ING but I'm saving heaps and so far we had one of the two rate cuts passed on similar to the other banks (I think one was not passed on by anyone other than fixed loans).

          Right now, I'm at 0.1% higher than advertised which is normal when there are cuts and new customer bonuses. Went with Well Home Loans also because they didn't have huge exit fees like Reduce. It was basically between TicToc and Well and they basically offer the same product, even down to the bank backing them.

          • SaberX on 16/06/2020 - 15:44

            @twohip: may i ask what rate you got for what LVR? Looking for an offset account to refinance out from bankwest's 3.07%… thinking i need to get down to 80% lvr, but looking for one with a straight out product with a low rate and comparison rate that isn't too shabby i.e. not full of hidden fees and package fees or ongoing costs, not to mention one that has low/decent exit fees if one needs to refinance or leave if they ever become uncompetitive in their rate.

            • twohip on 17/06/2020 - 12:56

              @SaberX: I applied in September for 2.97% and my refinance process went slowly due to things on my end, by the time I got my ducks in order and the refinance went through, I had 2.82% in November at settlement. I'm now on 2.57% and the advertised rate is 2.47% iirc. Loan size was >$400,000 at 80% LVR.

              They have been forthcoming, responsive, patient, and genuine. I even emailed them in April to get more clarity around their March rate cut and got a prompt and kind email. All the fees are listed and are low, and they send out regular mass emails to update when RBA moves or any other major home owner market news comes out, detailing what it means and what they will do. Super satisfied.

      • SaberX on 16/06/2020 - 15:43

        Does athena not have an offset option?

        We're looking to refinance lower too as bankwest won't reduce past 3.07%, but an offset is desired and we'd also want a good comparison rate, particularly low fees or exit fees to 'get out' if they do the old shoddy raise rates once they've got you in move.

        Anyone able to recommend anyone?

        • twohip on 17/06/2020 - 12:56

          Replied above but that's why for me it was between TicToc and Well Home Loans; offset was key.

  • dust on 16/06/2020 - 09:50
    +1

    Wow that's a low variable rate! But check out previous threads for Reduce loans. Not reviewed very well by OzBargain, lots of hidden fees and they don't pass on same rate cuts to existing customers.

    • screwball on 16/06/2020 - 11:06

      I have currently got my home loan through Reduce. We had some communication hiccups during the application and settlement phase but so far they've been fine.

      The only issue I have is that out of the three rate cuts that have happened since I got my loan, only 1 has been passed through. MortgageEzy is the lender.

      FYI whilst they have not passed on rate cuts, they also haven't suggested any increases.

      If you are diligent and have 20% deposit, I would give Reduce a 3 out of 5. Money is there to save if you are determined.

  • ozzieozzieozzie on 16/06/2020 - 10:49

    Tic Toc home loans are also worth a look, but each to their own.
    They are also an ADI (for offset accounts) as they are funded by Adelaide and Bendigo Banks.
    They also offer offset accounts for fixed rate loans too, which many do not offer.

  • great-price on 16/06/2020 - 11:08
    +1

    Don't go with these guys! I am looking at refinancing away from Mortgage Ezy (part of the same group as Reduce Home Loans). They get you in with a good rate and then hike the rate regularly for no reason. I'm currently paying 4.04% with them. That's what happens to existing customers over time. You will not be paying 2.19% for long!!! On top of that, their discharge fee is around $1,000!!!

  • cryptowiz on 16/06/2020 - 11:37

    The Comparison Rate at the top of their page refers to condition (23), but I can only find conditions (1)-(22) listed. Anyone there with keener eyes than mine? I'm not interested in the loan, just honesty in advertising.

  • john_conner on 16/06/2020 - 11:38

    Can’t trust these guys.
    Get ready for rate jacking - happened to many I know.

  • Loki556 on 16/06/2020 - 11:48

    I was with these guys - increased rates while everyone else was reducing them

    • screwball on 16/06/2020 - 14:05

      Can you provide any specifics? My mortgage is with them and I haven't yet experienced any issues.

      How long were you with them before the rise? What was your starter rate compared to what they jacked it up to? Do you mind if I ask how long ago this was and all that?

      Apologies if this is too personal, I am just interested to know whether I should be shopping sooner than later.

  • machej on 17/06/2020 - 16:26

    Never chase cheaper rates unless you're in a position to move again. Many of the lenders are notorious for hiking rates or not passing through the RBA cuts. Athena or that ANZ offer at 2.19% or similar is probably a better bet.

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