Reduce Home Loans offers home loans for the following types of borrowers:

• First home buyers
• Upgraders
• Investors
• Refinancers
• Renovators
• Self-employed (low-doc loans)

There are a variety of interest rates options available to Reduce Home Loan customers:

• Variable interest rates
• Fixed interest rates
• Principal-and-interest home loans
• Interest-only home loans
• Split loans

Reduce Home Loans has several mortgages that would suit borrowers with small deposits, and also offers the ability for parents to sign on as guarantors.

Unlike the big banks that lend out extremely high amounts to eligible customers, Reduce Home Loans has set maximum amounts for its home loans. Several products require loans to be between $50,000 and $2,000,000.

With mortgage terms of up to 30 years, customers can make repayments weekly, fortnightly or monthly.

Reduce Home Loans allows extra repayments to be made without penalty and many of its products come with offset accounts. All mortgages come with redraw facilities, although varying fees apply.

Like the name suggests, this home loan lender is about “reducing” home loans. Overall, Reduce Home Loan interest rates are very low to moderately low compared to other lenders in Australia.

When it comes to owner-occupiers paying principal and interest as well as interest-only, Reduce Home Loans offer very low to moderately low interest rates.  

Reduce Home Loans investor loans are also at the lower end of the home loan market in Australia. Its principal and interest investor loans are very low, while Reduce Home Loan investor interest-only mortgages are moderately low.

When it comes to fees, there are varying costs, depending on what Reduce Home Loans product a customer chooses. Overall, their upfront fees are moderately high, however the ongoing fees are generally very low.

Reduce Home Loans is up against the big banks that offer face-to-face customer service at branches and a much wider variety of financial services. It keeps its interest rates low to stay competitive, with Reduce Home Loan business primarily coming from customers comparing home loan rates online and looking for the best deal for them.

With its simple online model, Reduce Home Loans can service customers anywhere in Australia. Although most of its business is done online, Reduce Home Loans customers can make phone calls to the customer service centre.

Reduce Home Loans has streamlined its application and approval process for home loans, so compared to many of its competitors, it’s straightforward and quick. Customers are assigned a personal finance manager to guide them through this process.

Although it’s only been around since 2010, Reduce Home Loans has consistently won awards for its competitive mortgage products.