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.
Benefits
Drawbacks
6.99%
p.a
Variable
7.06%
p.a
$2,471
monthly
6.99%
p.a
Variable
7.10%
p.a
$2,471
monthly
5.89%
p.a
Variable
5.91%
p.a
$2,232
monthly
6.24%
p.a
Variable
6.30%
p.a
$2,307
monthly
6.49%
p.a
Fixed - 1 year
6.32%
p.a
$2,361
monthly
Use our home loan calculator to see how much you’d have to repay under different borrowing scenarios.
Your estimated mortgage repayments
Total interest payable
$0
Total loan repayments
$0
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.
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:
Reduce Home Loans offers home loans for the following types of borrowers:
There are a variety of interest rates options available to Reduce Home Loan customers:
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.
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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.
