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Reduce Home Loans
Reduce Home Loans is 100 per cent dedicated to home loans, offering no other financial services. It also operates online, with this simple business model helping Reduce Home Loans to keep running costs down and deliver low interest rates.
Australian owned and operated since it opened in 2010, Reduce Home Loans has won many business awards since, including Money Magazine’s cheapest non-bank home loan in 2016, 2017, 2018, 2019 and 2020, as well as Rate City’s 2020 Home Loan Gold Awards.
Reduce Home Loans home loan repayment calculator
Thinking about taking out a home loan with Reduce Home Loans? Use our home loan calculator to see how much you’d have to repay under different borrowing scenarios. You can also see how Reduce Home Loans home loans compare with other options.
Your estimated mortgage repayments
at interest rate 1.77%
Total interest payable
$0
Total loan repayments
$0
Pros and cons
- Low interest rates.
- Flexible loan options.
- Loans are suitable to borrowers with smaller deposits.
- Some loans have low fees.
- No branch access.
- Loans have application fees.
Reduce Home Loans home loans rates
Product | Advertised Rate 1.77 % p.a Variable | Total estimated upfront fees $440 | Comparison Rate* 1.86 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 1.79 % p.a Variable | Total estimated upfront fees $1170 | Comparison Rate* 1.88 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 1.89 % p.a Variable | Total estimated upfront fees $1170 | Comparison Rate* 1.98 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 1.99 % p.a Variable | Total estimated upfront fees $440 | Comparison Rate* 2.05 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 2.09 % p.a Variable | Total estimated upfront fees $580 | Comparison Rate* 2.18 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 2.17 % p.a Variable | Total estimated upfront fees $400 | Comparison Rate* 2.20 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.17 % p.a Variable | Total estimated upfront fees $400 | Comparison Rate* 2.20 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.17 % p.a Variable | Total estimated upfront fees $400 | Comparison Rate* 2.20 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.19 % p.a Variable | Total estimated upfront fees $400 | Comparison Rate* 2.23 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 2.19 % p.a Variable | Total estimated upfront fees $580 | Comparison Rate* 2.26 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.19 % p.a Variable | Total estimated upfront fees $580 | Comparison Rate* 2.28 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.29 % p.a Variable | Total estimated upfront fees $580 | Comparison Rate* 2.34 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.29 % p.a Variable | Total estimated upfront fees $697 | Comparison Rate* 2.36 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.29 % p.a Variable | Total estimated upfront fees $580 | Comparison Rate* 2.36 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 2.29 % p.a Variable | Total estimated upfront fees $1170 | Comparison Rate* 2.38 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 2.39 % p.a Variable | Total estimated upfront fees $580 | Comparison Rate* 2.46 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.39 % p.a Variable | Total estimated upfront fees $580 | Comparison Rate* 2.46 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 1.99 % p.a Fixed - 3 years | Total estimated upfront fees $1170 | Comparison Rate* 2.53 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 1.89 % p.a Fixed - 2 years | Total estimated upfront fees $1170 | Comparison Rate* 2.56 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 2.49 % p.a Variable | Total estimated upfront fees $580 | Comparison Rate* 2.56 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 2.39 % p.a Fixed - 3 years | Total estimated upfront fees $697 | Comparison Rate* 2.60 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 1.89 % p.a Fixed - 1 year | Total estimated upfront fees $1170 | Comparison Rate* 2.61 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.29 % p.a Fixed - 1 year | Total estimated upfront fees $697 | Comparison Rate* 2.62 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.29 % p.a Fixed - 2 years | Total estimated upfront fees $1137 | Comparison Rate* 2.62 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 2.59 % p.a Variable | Total estimated upfront fees $150 | Comparison Rate* 2.64 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 2.59 % p.a Variable | Total estimated upfront fees $697 | Comparison Rate* 2.64 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 2.59 % p.a Variable | Total estimated upfront fees $697 | Comparison Rate* 2.64 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.59 % p.a Variable | Total estimated upfront fees $697 | Comparison Rate* 2.64 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 2.59 % p.a Variable | Total estimated upfront fees $1170 | Comparison Rate* 2.68 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 2.69 % p.a Variable | Total estimated upfront fees $580 | Comparison Rate* 2.76 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.89 % p.a Variable | Total estimated upfront fees $580 | Comparison Rate* 2.94 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.89 % p.a Variable | Total estimated upfront fees $697 | Comparison Rate* 2.95 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 2.99 % p.a Variable | Total estimated upfront fees $697 | Comparison Rate* 3.04 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 3.09 % p.a Variable | Total estimated upfront fees $697 | Comparison Rate* 3.14 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 3.39 % p.a Variable | Total estimated upfront fees $697 | Comparison Rate* 3.39 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 4.09 % p.a Variable | Total estimated upfront fees $1020 | Comparison Rate* 4.56 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.19 % p.a Variable | Total estimated upfront fees $1930 | Comparison Rate* 4.69 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.24 % p.a Variable | Total estimated upfront fees $1020 | Comparison Rate* 4.70 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.34 % p.a Variable | Total estimated upfront fees $1930 | Comparison Rate* 4.83 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.39 % p.a Variable | Total estimated upfront fees $1020 | Comparison Rate* 4.85 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.49 % p.a Variable | Total estimated upfront fees $1930 | Comparison Rate* 4.94 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.54 % p.a Variable | Total estimated upfront fees $1020 | Comparison Rate* 4.99 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.59 % p.a Variable | Total estimated upfront fees $1930 | Comparison Rate* 5.13 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.64 % p.a Variable | Total estimated upfront fees $1930 | Comparison Rate* 5.13 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.69 % p.a Variable | Total estimated upfront fees $1020 | Comparison Rate* 5.14 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.49 % p.a Variable | Total estimated upfront fees $1020 | Comparison Rate* 5.16 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.79 % p.a Variable | Total estimated upfront fees $1930 | Comparison Rate* 5.27 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.74 % p.a Variable | Total estimated upfront fees $1930 | Comparison Rate* 5.28 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.64 % p.a Variable | Total estimated upfront fees $1020 | Comparison Rate* 5.31 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.89 % p.a Variable | Total estimated upfront fees $1930 | Comparison Rate* 5.42 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.79 % p.a Variable | Total estimated upfront fees $1020 | Comparison Rate* 5.46 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 5.04 % p.a Variable | Total estimated upfront fees $1930 | Comparison Rate* 5.57 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 4.94 % p.a Variable | Total estimated upfront fees $1020 | Comparison Rate* 5.61 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 5.19 % p.a Variable | Total estimated upfront fees $1930 | Comparison Rate* 5.72 % p.a | Ongoing fee $395 annually | Go to site | More details |
Product | Advertised Rate 5.09 % p.a Variable | Total estimated upfront fees $1020 | Comparison Rate* 5.76 % p.a | Ongoing fee $395 annually | Go to site | More details |
Reduce Home Loans customer service
As Reduce Home Loans is an online-only lender, customers won’t have access to bricks and mortar branches. Customers can contact Reduce Home Loans by calling the customer contact centre, emailing the bank directly or by filling out an online enquiry form. Home loan applicants will be assigned a personal finance manager who will guide them through the process all the way to settlement. Customers are also able to chat with a support representative through the Reduce Home Loans website.
- Customer service (phone, email)
- Live Chat
- Mobile banking staff
How to Apply
Borrowers wanting to apply for a Reduce Home Loan can either complete a loan enquiry form online or call customer support for assistance with the application. Before applying for a Reduce Home Loans home loan, think about what you can afford to borrow and what other costs you need to consider. To apply for a Reduce home loan, you will need to supply the following information:
- Personal identification material.
- Proof of income and employment.
- Information regarding your current debts, liabilities and assets.
About Reduce Home Loans
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.
Reduce home loan rates
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 review
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.
Reduce Home Loans top home loans products
Learn more about home loans
How common are low-deposit home loans?
Low-deposit home loans aren’t as common as they once were, because they’re regarded as relatively risky and the banking regulator (APRA) is trying to reduce risk from the mortgage market.
However, if you do your research, you’ll find there is still a fairly wide selection of banks, credit unions and non-bank lenders that offers low-deposit home loans.
How do I apply for a home improvement loan?
When you want to renovate your home, you may need to take out a loan to cover the costs. You could apply for a home improvement loan, which is a personal loan that you use to cover the costs of your home renovations. There is no difference between applying for this type of home improvement loan and applying for a standard personal loan. It would be best to check and compare the features, fees and details of the loan before applying.
Besides taking out a home improvement loan, you could also:
- Use the equity in your house: Equity is the difference between your property’s value and the amount you still owe on your home loan. You may be able to access this equity by refinancing your home loan and then using it to finance your home improvement. Speak with your lender or a mortgage broker about accessing your equity.
- Utilise the redraw facility of your home loan: Check whether the existing home loan has a redraw facility. A redraw facility allows you to access additional funds you’ve repaid into your home loan. Some lenders offer this on variable rate home loans but not on fixed. If this option is available to you, contact your lender to discuss how to access it.
- Apply for a construction loan: A construction loan is typically used when constructing a new property but can also be used as a home renovation loan. You may find that a construction loan is a suitable option as it enables you to draw funds as your renovation project progresses. You can compare construction home loans online or speak to a mortgage broker about taking out such a loan.
- Look into government grants: Check whether there are any government grants offered when you need the funds and whether you qualify. Initiatives like the HomeBuilder Grant were offered by the Federal Government for a limited period until April 2021. They could help fund your renovations either in full or just partially.
Can first home buyers apply for an ING home loan?
First home buyers can apply for an ING home loan, but first, they need to select the most suitable home loan product and calculate the initial deposit on their home loan.
First-time buyers can also use ING’s online tool to estimate the amount they can borrow. ING offers home loan applicants a free property report to look up property value estimates.
First home loan applicants struggling to understand the terms used may consider looking up ING’s first home buyer guide. Once the home buyer is ready to apply for the loan, they can complete an online application or call ING at 1800 100 258 during regular business hours.
How do I apply for Westpac’s first home buyer loan?
If you’re a first home buyer looking to apply for a home loan with Westpac, they offer an online home loan application. They suggest the application can be completed in about 20 minutes. Based on the information you provide, Westpac will advise you the amount you can borrow and the costs associated with any possible home loan.
You can use Westpac’s online mortgage calculators to estimate your borrowing power. You can also work out the time it might take to save up for the deposit, and the size of your home loan repayments.
When applying for a home loan with Westpac, you’re assigned a home finance manager who can address your concerns and provide information. The manager will also offer guidance on any government grants you may be eligible for.
Does the Home Loan Rate Promise apply to discounted interest rate offers, such as honeymoon rates?
No. Temporary discounts to home loan interest rates will expire after a limited time, so they aren’t valid for comparing home loans as part of the Home Loan Rate Promise.
However, if your home loan has been discounted from the lender’s standard rate on a permanent basis, you can check if we can find an even lower rate that could apply to you.
Are bad credit home loans dangerous?
Bad credit home loans can be dangerous if the borrower signs up for a loan they’ll struggle to repay. This might occur if the borrower takes out a mortgage at the limit of their financial capacity, especially if they have some combination of a low income, an insecure job and poor savings habits.
Bad credit home loans can also be dangerous if the borrower buys a home in a stagnant or falling market – because if the home has to be sold, they might be left with ‘negative equity’ (where the home is worth less than the mortgage).
That said, bad credit home loans can work out well if the borrower is able to repay the mortgage – for example, if they borrow conservatively, have a decent income, a secure job and good savings habits. Another good sign is if the borrower buys a property in a market that is likely to rise over the long term.
How to apply for a pre-approval home loan from Bendigo Bank?
Applying for pre-approval on your home loan gives you confidence in your ability to secure finance while looking at potential new homes. You can get a free and personalised pre-approval home loan from Bendigo Bank in just a few minutes, without any credit checks or paperwork.
Bendigo Bank offers pre-approval for home loans that allow you to understand the home loan size you may be able to get before looking for a new home.
With the pre-approval, Bendigo Bank provides an estimate of your borrowing power. This figure incorporates stamp duty, lenders mortgage insurance (LMI) and any first home buyer incentives you may be eligible for. You may also qualify for the First Home Loan Deposit Scheme initiative, depending on your circumstances.
To apply for a pre-approval on your home loan from Bendigo Bank, all you need to do is fill in a smart form. You could also contact the bank directly on 1300 236 344.
How do I get a pre-approved home loan with Aussie?
Getting Aussie home loan pre-approval means receiving conditional support from Aussie Home Loans to borrow the money you need to buy a home.
It’s an indication of the approximate amount Aussie may offer you, subject to some terms and conditions. Keep in mind, having a pre-approved home loan does not guarantee an actual approval of your loan when it comes time to buy.
Aussie home loan pre-approval often involves speaking to one of the lender’s brokers. You can make an appointment online. You’ll often have to submit your personal details and other information about your assets, income, liabilities and expenses. It’s worth remembering that a pre-approved loan is usually valid for a few months.
How can I apply for a first home buyers loan with Commonwealth Bank?
Getting a home loan requires planning and research. If you are considering a home loan with the Commonwealth Bank, you can find the information you need in the buying your first home section of the bank’s website.
You can see the steps you should take before applying for the loan and use the calculators to work out how much you can borrow, what your monthly repayments would be and the upfront costs you’d likely pay.
You can also book a time with a Commonwealth first home loan specialist by calling 13 2221.
CommBank publishes a property report that may help you understand the real estate market. The bank has also created a CommBank Property App that you can use to search for property. The link to download this app is available on the same webpage.
If you are eligible for the First Home Loan Deposit Scheme, CommBank will help you process your application. The scheme helps first home buyers to purchase a home with a low deposit. You can read details about this scheme here and speak with a CommBank home lending specialist to understand your options.
Cash or mortgage – which is more suitable to buy an investment property?
Deciding whether to buy an investment property with cash or a mortgage is a matter or personal choice and will often depend on your financial situation. Using cash may seem logical if you have the money in reserve and it can allow you to later use the equity in your home. However, there may be other factors to think about, such as whether there are other debts to pay down and whether it will tie up all of your spare cash. Again, it’s a personal choice and may be worth seeking personal advice.
A mortgage is a popular option for people who don’t have enough cash in the bank to pay for an investment property. Sometimes when you take out a mortgage you can offset your loan interest against the rental income you may earn. The rental income can also help to pay down the loan.
Does Australia have no-deposit home loans?
Australia no longer has no-deposit home loans – or 100 per cent home loans as they’re also known – because they’re regarded as too risky.
However, some lenders allow some borrowers to take out mortgages with a 5 per cent deposit.
Another option is to source a deposit from elsewhere – either by using a parental guarantee or by drawing out equity from another property.
How do you determine which home loan rates/products I’m shown?
When you check your home loan rate, you’ll supply some basic information about your current loan, including the amount owing on your mortgage and your current interest rate.
We’ll compare this information to the home loan options in the RateCity database and show you which home loan products you may be eligible to apply for.
What are the different types of home loan interest rates?
A home loan interest rate is used to calculate how much you’ll pay the lender, usually annually, above the amount you borrow. It’s what the lenders charge you for them lending you money and will impact the total amount you’ll pay over the life of your home loan.
Having understood what are home loan rates in general, here are the two types you usually have with a home loan:
Fixed rates
These interest rates remain constant for a specific period and are a good option if you’re a first-time buyer or if you’re looking for a fixed monthly repayment. One possible downside of a fixed rate is that it may be higher than a variable rate. Also, you don’t benefit from any lowering of interest rates in the market. On the flip side, if rates go up, your rate won’t change, possibly saving you money.
Variable rates
With variable interest rates, the lender can change them at any time. This change can be based on economic conditions or other reasons. Changes in interest rates could be beneficial if your monthly repayment decreases but can be a problem if it increases. Variable interest rates offer several other benefits often not available with fixed rate home loans like redraw and offset facilities and free extra repayments.
How to apply for a home loan pre-approval from St. George?
By applying for a home loan pre-approval, you can establish how much you can afford to borrow and look for houses within that pre-approved budget. Getting home loan pre-approval from St. George is a fairly simple process that can be completed within 15 minutes.
The first step in this process is completing a home loan application. Once that application is submitted, a home loan expert from St. George will contact you to understand your requirements and your current financial position. You could also directly contact a home loan expert at the bank by calling 13 33 30 or by visiting your nearest branch.
Once the application has been processed, the home loan expert will ask for some basic documentation to confirm your borrowing capacity. After this, you should be issued a home loan pre-approval, subject to certain conditions.
Based on your home loan pre-approval from St. George, you can then find a property and make an offer. Your home loan expert will arrange to have the property valued and may request for more documentation, taking your home loan application to the next step.
Where can I get all the information about an ANZ first home buyer’s loan?
As a first home buyer, you may require help and hand-holding, and as such ANZ has the buying your first home section on its website full of important information. ANZ also has a form in this section you can fill out to get a free consultation from an ANZ First Home Coach and create your own plan for buying your first home. This coach will help you understand where your current income is being spent and plan for your home loan repayments. You’ll get a clear picture of the costs involved in purchasing a property and how to budget or save for these costs. The coach will help you understand different deposit options and manage your accounts to enhance your savings.
There are three types of ANZ first home loans - Standard Variable, Fixed, and Equity Manager. The features, interest rates, and terms for each are different, and you can compare them here.
When they apply for an ANZ home loan, first home buyers can also get guidance on applying for the First Home Owner Grant (FHOG). This is a one-off government grant that may be available to you when you’re buying your first home. The eligibility criteria for FHOG differs between the different states and territories, which is why it’s helpful to have expert advice when applying.
