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.

I'd like to borrow

$

I am an

Loan term

With a repayment type

Your estimated repayments

at interest rate 1.89 %

Total interest payable

$0

Total amount payable

$0

Pros and cons

Pros
  • Low interest rates.
  • Flexible loan options.
  • Loans are suitable to borrowers with smaller deposits.
  • Some loans have low fees.
Cons
  • No branch access.
  • Loans have application fees.

Reduce Home Loans home loans rates

Product
Advertised Rate
Total estimated upfront fees
Comparison Rate*
Ongoing fee
Go to site
Company

1.89%

Variable

$1170

1.92%

$0
Reduce Home Loans
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2.19%

Variable

$1170

2.23%

$0
Reduce Home Loans
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2.19%

Variable

$697

2.26%

$0
Reduce Home Loans
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2.19%

Variable

$1170

2.26%

$0
Reduce Home Loans
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2.29%

Variable

$150

2.30%

$0
Reduce Home Loans
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1.90%

Fixed - 1 year

$697

2.42%

$0
Reduce Home Loans
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2.39%

Variable

$1170

2.43%

$0
Reduce Home Loans
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2.39%

Variable

$440

2.46%

$0
Reduce Home Loans
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2.39%

Variable

$1170

2.46%

$0
Reduce Home Loans
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2.49%

Variable

$1170

2.49%

$0
Reduce Home Loans
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2.49%

Variable

$697

2.49%

$0
Reduce Home Loans
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2.45%

Variable

$0

2.54%

$0
Reduce Home Loans
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2.55%

Variable

$0

2.55%

$0
Reduce Home Loans
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2.49%

Variable

$1170

2.59%

$0
Reduce Home Loans
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2.59%

Variable

$0

2.59%

$0
Reduce Home Loans
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2.59%

Variable

$150

2.59%

$0
Reduce Home Loans
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2.59%

Variable

$0

2.59%

$0
Reduce Home Loans
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2.59%

Variable

$0

2.59%

$0
Reduce Home Loans
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2.59%

Variable

$0

2.59%

$0
Reduce Home Loans
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2.29%

Fixed - 3 years

$697

2.66%

$0
Reduce Home Loans
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2.19%

Fixed - 2 years

$697

2.67%

$0
Reduce Home Loans
More details

2.69%

Variable

$440

2.69%

$0
Reduce Home Loans
More details

2.69%

Variable

$0

2.69%

$0
Reduce Home Loans
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2.69%

Variable

$1070

2.69%

$0
Reduce Home Loans
More details

2.19%

Fixed - 1 year

$697

2.71%

$0
Reduce Home Loans
More details

2.79%

Variable

$1287

2.79%

$0
Reduce Home Loans
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2.79%

Variable

$0

2.79%

$0
Reduce Home Loans
More details

2.79%

Variable

$0

2.79%

$0
Reduce Home Loans
More details

2.79%

Variable

$440

2.82%

$0
Reduce Home Loans
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2.49%

Fixed - 3 years

$697

2.88%

$0
Reduce Home Loans
More details

2.89%

Variable

$0

2.89%

$0
Reduce Home Loans
More details

2.89%

Variable

$1287

2.90%

$0
Reduce Home Loans
More details

2.49%

Fixed - 2 years

$697

2.92%

$0
Reduce Home Loans
More details

2.49%

Fixed - 1 year

$697

2.97%

$0
Reduce Home Loans
More details

2.99%

Variable

$0

2.99%

$0
Reduce Home Loans
More details

2.99%

Variable

$0

2.99%

$0
Reduce Home Loans
More details

2.99%

Variable

$0

2.99%

$0
Reduce Home Loans
More details

2.99%

Variable

$0

2.99%

$0
Reduce Home Loans
More details

2.99%

Variable

$0

2.99%

$0
Reduce Home Loans
More details

2.99%

Variable

$1070

3.06%

$0
Reduce Home Loans
More details

3.09%

Variable

$697

3.09%

$0
Reduce Home Loans
More details

3.09%

Variable

$0

3.09%

$0
Reduce Home Loans
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3.09%

Variable

$0

3.09%

$0
Reduce Home Loans
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3.14%

Variable

$250

3.14%

$0
Reduce Home Loans
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2.69%

Fixed - 3 years

$697

3.16%

$0
Reduce Home Loans
More details

3.19%

Variable

$0

3.19%

$0
Reduce Home Loans
More details

3.19%

Variable

$0

3.19%

$0
Reduce Home Loans
More details

3.19%

Variable

$440

3.21%

$0
Reduce Home Loans
More details

2.69%

Fixed - 2 years

$697

3.24%

$0
Reduce Home Loans
More details

3.24%

Variable

$0

3.24%

$0
Reduce Home Loans
More details

3.24%

Variable

$0

3.24%

$0
Reduce Home Loans
More details

3.24%

Variable

$0

3.24%

$0
Reduce Home Loans
More details

3.24%

Variable

$0

3.24%

$0
Reduce Home Loans
More details

2.69%

Fixed - 1 year

$697

3.30%

$0
Reduce Home Loans
More details

3.49%

Variable

$697

3.49%

$0
Reduce Home Loans
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.

Learn more about Reduce 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.

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.

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.

Who offers 40 year mortgages?

Home loans spanning 40 years are offered by select lenders, though the loan period is much longer than a standard 30-year home loan. You're more likely to find a maximum of 35 years, such as is the case with Teacher’s Mutual Bank

Currently, 40 year home loan lenders in Australia include AlphaBeta Money, BCU, G&C Mutual Bank, Pepper, and Sydney Mutual Bank.

Even though these lengthier loans 35 to 40 year loans do exist on the market, they are not overwhelmingly popular, as the extra interest you pay compared to a 30-year loan can be over $100,000 or more.

What is 'principal and interest'?

‘Principal and interest’ loans are the most common type of home loans on the market. The principal part of the loan is the initial sum lent to the customer and the interest is the money paid on top of this, at the agreed interest rate, until the end of the loan.

By reducing the principal amount, the total of interest charged will also become smaller until eventually the debt is paid off in full.

How can I get a home loan with bad credit?

If you want to get a home loan with bad credit, you need to convince a lender that your problems are behind you and that you will, indeed, be able to repay a mortgage.

One step you might want to take is to visit a mortgage broker who specialises in bad credit home loans (also known as ‘non-conforming home loans’ or ‘sub-prime home loans’). An experienced broker will know which lenders to approach, and how to plead your case with each of them.

Two points to bear in mind are:

  • Many home loan lenders don’t provide bad credit mortgages
  • Each lender has its own policies, and therefore favours different things

If you’d prefer to directly approach the lender yourself, you’re more likely to find success with smaller non-bank lenders that specialise in bad credit home loans (as opposed to bigger banks that prefer ‘vanilla’ mortgages). That’s because these smaller lenders are more likely to treat you as a unique individual rather than judge you according to a one-size-fits-all policy.

Lenders try to minimise their risk, so if you want to get a home loan with bad credit, you need to do everything you can to convince lenders that you’re safer than your credit history might suggest. If possible, provide paperwork that shows:

  • You have a secure job
  • You have a steady income
  • You’ve been reducing your debts
  • You’ve been increasing your savings

How will Real Time Ratings help me find a new home loan?

The home loan market is complex. With almost 4,000 different loans on offer, it’s becoming increasingly difficult to work out which loans work for you.

That’s where Real Time RatingsTM can help. Our system automatically filters out loans that don’t fit your requirements and ranks the remaining loans based on your individual loan requirements and preferences.

Best of all, the ratings are calculated in real time so you know you’re getting the most current information.

What are extra repayments?

Additional payments to your home loan above the minimum monthly instalments, which can help to reduce the loan’s term and remaining payable interest.

Do the big four banks have guarantor home loans?

Yes, ANZ, Commonwealth Bank, NAB and Westpac all offer guarantor home loans. These mortgages are also offered by many other banks, credit unions and building societies.

What are the pros and cons of no-deposit home loans?

It’s no longer possible to get a no-deposit home loan in Australia. In some circumstances, you might be able to take out a mortgage with a 5 per cent deposit – but before you do so, it’s important to weigh up the pros and cons.

The big advantage of borrowing 95 per cent (also known as a 95 per cent home loan) is that you get to buy your property sooner. That may be particularly important if you plan to purchase in a rising market, where prices are increasing faster than you can accumulate savings.

But 95 per cent home loans also have disadvantages. First, the 95 per cent home loan market is relatively small, so you’ll have fewer options to choose from. Second, you’ll probably have to pay LMI (lender’s mortgage insurance). Third, you’ll probably be charged a higher interest rate. Fourth, the more you borrow, the more you’ll ultimately have to pay in interest. Fifth, if your property declines in value, your mortgage might end up being worth more than your home.

How do I know if I have to pay LMI?

Each lender has its own policies, but as a general rule you will have to pay lender’s mortgage insurance (LMI) if your loan-to-value ratio (LVR) exceeds 80 per cent. This applies whether you’re taking out a new home loan or you’re refinancing.

If you’re looking to buy a property, you can use this LMI calculator to work out how much you’re likely to be charged in LMI.

What happens to my home loan when interest rates rise?

If you are on a variable rate home loan, every so often your rate will be subject to increases and decreases. Rate changes are determined by your lender, not the Reserve Bank of Australia, however often when the RBA changes the cash rate, a number of banks will follow suit, at least to some extent. You can use RateCity cash rate to check how the latest interest rate change affected your mortgage interest rate.

When your rate rises, you will be required to pay your bank more each month in mortgage repayments. Similarly, if your interest rate is cut, then your monthly repayments will decrease. Your lender will notify you of what your new repayments will be, although you can do the calculations yourself, and compare other home loan rates using our mortgage calculator.

There is no way of conclusively predicting when interest rates will go up or down on home loans so if you prefer a more stable approach consider opting for a fixed rate loan.

What happens when you default on your mortgage?

A mortgage default occurs when you are 90 days or more behind on your mortgage repayments. Late repayments will often incur a late fee on top of the amount owed which will continue to gather interest along with the remaining principal amount.

If you do default on a mortgage repayment you should try and catch up in next month’s payment. If this isn’t possible, and missing payments is going to become a regular issue, you need to contact your lender as soon as possible to organise an alternative payment schedule and discuss further options.

You may also want to talk to a financial counsellor. 

How personalised is my rating?

Real Time Ratings produces instant scores for loan products and updates them based what you tell us about what you’re looking for in a loan. In that sense, we believe the ratings are as close as you get to personalised; the more you tell us, the more we customise to ratings to your needs. Some borrowers value flexibility, while others want the lowest cost loan. Your preferences will be reflected in the rating. 

We also take a shorter term, more realistic view of how long borrowers hold onto their loan, which gives you a better idea about the true borrowing costs. We take your loan details and calculate how much each of the relevent loans would cost you on average each month over the next five years. We assess the overall flexibility of each loan and give you an easy indication of which ones are likely to adjust to your needs over time. 

How often is your data updated?

We work closely with lenders to get updates as quick as possible, with updates made the same day wherever possible.