Reduce Home Loans Home Owners Loan

Features

The Reduce Home Loans Home Owners Loan is designed for borrowers looking to lock in a no-fuss, low rate fixed home.

The Home Owners Dream Loan gives you a choice of fixing your loan for a period of one, two or three years. Loan products vary depending on your deposit size, with loans catering to borrowers looking to loan anywhere between 80 to 95 percent of the property value.

All of the Home Owners Dream loans give you the option of splitting your loan into both fixed and variable interest rate options, which is ideal for borrowers who like the best of both worlds.

All Reduce Home Loans fixed rate loans are portable which means that you can keep your home loan when you move which can save you the hassle of refinancing or applying again.

While these fixed rate loans have no 100 percent offset account or redraw facility, they do give the option of paying off your loan faster by making additional repayments without penalty.

If you haven’t quite managed to save a full deposit yet, this fixed rate loan gives you the option of borrowing up to 95 percent of the property value, however loans over 80 percent will need to pay lenders mortgage insurance.

Who is the Reduce Home Loans Home Owners Loan good for?

The very high upfront fees may be a barrier for refinancers and the when coupled with the high discharge fee and lack of interest-only payments, this loan looks less attractive to investors. The low fixed rate, flexible deposit requirements and portability make this loan better suited to owner-occupiers and first home buyers.

Review - What RateCity says

The Reduce Home Loans Home Owners Loan is essentially a group of fixed rate loans that have basic, but manageable features which are best suited to owner-occupiers and first home buyers.

Borrowers with a bit of extra cash should note that these fixed rate loans don’t have a 100 percent offset account or redraw facility which can add thousands of dollars in interest over the life of the loan.

That said, if you’re looking for a loan for life and enjoy the stability of a fixed rate loan then the portability feature of this loan might tick that box.

This loan has very high upfront and discharge fees which would make this loan unappealing to an investor, however, if you were looking at taking this loan with you to your next property then the upfront fee would only be payable once. 

Reduce Home Loans Home Owners Loan Options

The Reduce Home Loans Home Owners Loan can be fixed for up the three years and is available to borrowers with deposit sizes ranging from five to 20 percent. Click here to find a home or investment loan that suits you.

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Fixed Rates from

2.79%

Advertised rate

3.04%

Comparison rate
Pros
  • Split loan feature.
  • No ongoing fees.
  • Portability feature.
Cons
  • High upfront fee.
  • No 100 percent offset account.
  • No redraw facility.
Eligibility

Provide proof of employment and income.

Provide a list of assets and liabilities.

Provide proof of savings.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
Fees
  • Estimated upfront fees: $547.00
  • Discharge fees: $0
  • Ongoing fees: $0

While this loan has no ongoing monthly loan fee, it does have a very high upfront establishment fee and a higher than average discharge fee. There is no fee for making additional repayments, however there is an annual limit.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About Reduce Home Loans

Reduce Home Loans is an Australian-owned and operated online lender with no bricks and mortar branches. It has been operating since 2010.

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