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 am an

With a repayment type

Borrow amount

$

Deposit amount %

Loan term

Your estimated repayments

at interest rate 1.77 %

Total interest payable

$0

Total amount payable

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

1.77%

Variable

$890

1.83%

$0
Reduce Home Loans
More details

1.99%

Variable

$890

2.05%

$0
Reduce Home Loans
More details

1.99%

Variable

$580

2.06%

$0
Reduce Home Loans
More details

2.19%

Variable

$697

2.24%

$0
Reduce Home Loans
More details

2.19%

Variable

$697

2.24%

$0
Reduce Home Loans
More details

2.19%

Variable

$697

2.24%

$0
Reduce Home Loans
More details

2.19%

Variable

$697

2.24%

$0
Reduce Home Loans
More details

2.29%

Variable

$580

2.35%

$0
Reduce Home Loans
More details

2.29%

Variable

$697

2.36%

$0
Reduce Home Loans
More details

2.29%

Variable

$580

2.36%

$0
Reduce Home Loans
More details

2.29%

Variable

$580

2.36%

$0
Reduce Home Loans
More details

2.45%

Variable

$150

2.48%

$0
Reduce Home Loans
More details

2.49%

Variable

$150

2.51%

$0
Reduce Home Loans
More details

2.49%

Variable

$697

2.54%

$0
Reduce Home Loans
More details

2.49%

Variable

$697

2.54%

$0
Reduce Home Loans
More details

2.49%

Variable

$697

2.54%

$0
Reduce Home Loans
More details

2.49%

Variable

$697

2.54%

$0
Reduce Home Loans
More details

2.55%

Variable

$150

2.55%

$0
Reduce Home Loans
More details

2.49%

Variable

$580

2.56%

$0
Reduce Home Loans
More details

1.99%

Fixed - 3 years

$697

2.61%

$0
Reduce Home Loans
More details

2.59%

Variable

$697

2.64%

$0
Reduce Home Loans
More details

1.94%

Fixed - 2 years

$150

2.65%

$0
Reduce Home Loans
More details

2.59%

Variable

$580

2.65%

$0
Reduce Home Loans
More details

2.59%

Variable

$580

2.66%

$0
Reduce Home Loans
More details

2.69%

Variable

$697

2.69%

$0
Reduce Home Loans
More details

1.94%

Fixed - 1 year

$150

2.71%

$0
Reduce Home Loans
More details

2.69%

Variable

$580

2.76%

$0
Reduce Home Loans
More details

2.79%

Variable

$0

2.79%

$0
Reduce Home Loans
More details

2.79%

Variable

$1170

2.86%

$0
Reduce Home Loans
More details

2.89%

Variable

$150

2.92%

$0
Reduce Home Loans
More details

2.89%

Variable

$1170

2.96%

$0
Reduce Home Loans
More details

2.36%

Fixed - 3 years

$697

2.99%

$0
Reduce Home Loans
More details

2.99%

Variable

$150

3.02%

$0
Reduce Home Loans
More details

2.99%

Variable

$697

3.04%

$0
Reduce Home Loans
More details

2.99%

Variable

$580

3.05%

$0
Reduce Home Loans
More details

2.37%

Fixed - 2 years

$697

3.06%

$0
Reduce Home Loans
More details

2.37%

Fixed - 1 year

$697

3.09%

$0
Reduce Home Loans
More details

3.09%

Variable

$697

3.09%

$0
Reduce Home Loans
More details

3.09%

Variable

$697

3.14%

$0
Reduce Home Loans
More details

3.09%

Variable

$697

3.14%

$0
Reduce Home Loans
More details

3.14%

Variable

$250

3.14%

$0
Reduce Home Loans
More details

3.19%

Variable

$0

3.19%

$0
Reduce Home Loans
More details

3.24%

Variable

$697

3.24%

$0
Reduce Home Loans
More details

2.57%

Fixed - 2 years

$697

3.26%

$0
Reduce Home Loans
More details

2.57%

Fixed - 3 years

$697

3.26%

$0
Reduce Home Loans
More details

2.57%

Fixed - 1 year

$697

3.33%

$0
Reduce Home Loans
More details

3.34%

Variable

$697

3.34%

$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.

How is the flexibility score calculated?

Points are awarded for different features. More important features get more points. The points are then added up and indexed into a score from 0 to 5.

What is a construction loan?

A construction loan is loan taken out for the purpose of building or substantially renovating a residential property. Under this type of loan, the funds are released in stages when certain milestones in the construction process are reached. Once the building is complete, the loan will revert to a standard principal and interest mortgage.

What is a specialist lender?

Specialist lenders, also known as non-conforming lenders, are lenders that offer mortgages to ‘non-vanilla’ borrowers who struggle to get finance at mainstream banks.

That includes people with bad credit, as well as borrowers who are self-employed, in casual employment or are new to Australia.

Specialist lenders take a much more flexible approach to assessing mortgage applications than mainstream banks.

What is a fixed home loan?

A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.

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 can I get a home loan with no deposit?

Following the Global Financial Crisis, no-deposit loans, as they once used to be known, have largely been removed from the market. Now, if you wish to enter the market with no deposit, you will require a property of your own to secure a loan against or the assistance of a guarantor.

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.

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.

Mortgage Calculator, Property Value

An estimate of how much your desired property is worth. 

What is a building in course of erection loan?

Also known as a construction home loan, a building in course of erection (BICOE) loan loan allows you to draw down funds as a building project advances in order to pay the builders. This option is available on selected variable rate loans.

Mortgage Balance

The amount you currently owe your mortgage lender. If you are not sure, enter your best estimate.

Mortgage Calculator, Deposit

The proportion you have already saved to go towards your home. 

Monthly Repayment

Your current monthly home loan repayment. To accurately calculate how much you could save, an accurate payment figure is required. If you are not certain, check your bank statement.