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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.

Owner occupied products interest rates

TMD

Loan typePrincipal & Interest rateInterest Only
Super Saver (Min Deposit 20%)
1.77% p.a.
1.86% p.a. Comparison rate
n/a
Rate Cutter Home Loan (Min Deposit 40%)
1.79% p.a.
1.88% p.a. Comparison rate
n/a
Economizer (Min Deposit 20%)
1.89% p.a.
1.94% p.a. Comparison rate
n/a
Rate Cutter Home Loan (Min Deposit 30%)
1.89% p.a.
1.97% p.a. Comparison rate
n/a
Low Rider Cashback (Min Deposit 40%)
1.99% p.a.
2.08% p.a. Comparison rate
n/a
Capitalizer Full Doc (Min Deposit 20%)
1.99% p.a.
2.08% p.a. Comparison rate
n/a
Super Saver Combo (Min Deposit 20%)
1.77% p.a.
2.09% p.a. Comparison rate
n/a
Rate Lovers Variable Home Loan (Min Deposit 20%)
1.99% p.a.
2.09% p.a. Comparison rate
n/a
Cash Back Hero Variable (Min Deposit 20%)
2.09% p.a.
2.14% p.a. Comparison rate
n/a
1 Year Home Owners Dream Fixed (Min Deposit 20%)
1.89% p.a.
2.24% p.a. Comparison rate
n/a
2 Year Home Owners Dream Fixed (Min Deposit 20%)
2.09% p.a.
2.25% p.a. Comparison rate
n/a
Low Rider Cashback (Min Deposit 30%)
2.19% p.a.
2.28% p.a. Comparison rate
n/a
3 Year Home Owners Dream Fixed (Min Deposit 20%)
2.39% p.a.
2.31% p.a. Comparison rate
n/a
Super Saver (Min Deposit 10%)
2.29% p.a.
2.38% p.a. Comparison rate
n/a
4 Year Home Owners Dream Fixed (Min Deposit 20%)
2.89% p.a.
2.46% p.a. Comparison rate
n/a
2 Year Home Owners Dream Fixed (Min Deposit 10%)
2.19% p.a.
2.58% p.a. Comparison rate
n/a
Capitalizer Full Doc (Min Deposit 10%)
2.49% p.a.
2.58% p.a. Comparison rate
n/a
Rate Lovers Variable Home Loan (Min Deposit 10%)
2.49% p.a.
2.58% p.a. Comparison rate
n/a
Rate Slasher Variable Home Loan (Min Deposit 10%)
2.59% p.a.
2.61% p.a. Comparison rate
n/a
5 Year Home Owners Dream Fixed (Min Deposit 20%)
3.19% p.a.
2.61% p.a. Comparison rate
n/a
1 Year Home Owners Dream Fixed (Min Deposit 10%)
1.99% p.a.
2.62% p.a. Comparison rate
n/a
Cash Back Hero Variable (Min Deposit 10%)
2.59% p.a.
2.64% p.a. Comparison rate
n/a
3 Year Home Owners Dream Fixed (Min Deposit 10%)
2.49% p.a.
2.76% p.a. Comparison rate
n/a
4 Year Home Owners Dream Fixed (Min Deposit 10%)
2.99% p.a.
2.82% p.a. Comparison rate
n/a
5 Year Home Owners Dream Fixed (Min Deposit 10%)
3.29% p.a.
2.83% p.a. Comparison rate
n/a
Capitalizer Alt Doc (Min Deposit 20%)
2.99% p.a.
3.08% p.a. Comparison rate
n/a

Investment purpose products interest rates

TMD

Loan typePrincipal & Interest rateInterest Only
Investor Rate Cutter (Min Deposit 20%)
2.09% p.a.
2.18% p.a. Comparison rate
2.39% p.a.
2.48% p.a. Comparison rate
Investor Rate Lovers Variable Home Loan (Min Deposit 20%)
2.29% p.a.
2.36% p.a. Comparison rate
2.59% p.a.
2.64% p.a. Comparison rate
Investor Cash Back Hero (Min Deposit 20%)
2.49% p.a.
2.54% p.a. Comparison rate
2.79% p.a.
2.95% p.a. Comparison rate
Investor Cash Back Hero (Min Deposit 10%)
3.09% p.a.
3.14% p.a. Comparison rate
3.39% p.a.
3.39% p.a. Comparison rate
Ezy SMSF Metro (Min Deposit 40%)
3.59% p.a.
3.68% p.a. Comparison rate
3.89% p.a.
4.44% p.a. Comparison rate
Prime SMSF Metro (Min Deposit 40%)
3.59% p.a.
4.07% p.a. Comparison rate
3.99% p.a.
4.48% p.a. Comparison rate
Ezy SMSF Metro (Min Deposit 25%)
3.69% p.a.
3.78% p.a. Comparison rate
3.99% p.a.
4.54% p.a. Comparison rate
Ezy SMSF Metro (Min Deposit 35%)
3.69% p.a.
3.78% p.a. Comparison rate
3.99% p.a.
4.54% p.a. Comparison rate
Ezy SMSF Metro (Min Deposit 20%)
3.69% p.a.
3.78% p.a. Comparison rate
3.99% p.a.
4.54% p.a. Comparison rate
Ezy SMSF Metro (Min Deposit 30%)
3.69% p.a.
3.78% p.a. Comparison rate
3.99% p.a.
4.54% p.a. Comparison rate
Prime SMSF Metro (Min Deposit 35%)
3.69% p.a.
4.16% p.a. Comparison rate
4.09% p.a.
4.58% p.a. Comparison rate
Prime SMSF Metro (Min Deposit 30%)
3.79% p.a.
4.26% p.a. Comparison rate
4.19% p.a.
4.67% p.a. Comparison rate
Prime SMSF Metro (Min Deposit 25%)
3.89% p.a.
4.36% p.a. Comparison rate
4.29% p.a.
4.77% p.a. Comparison rate
Prime SMSF Metro (Min Deposit 20%)
3.89% p.a.
4.36% p.a. Comparison rate
4.29% p.a.
4.77% p.a. Comparison rate
Investor Rate Lovers Variable Home Loan (Min Deposit 40%)
1.99% p.a.
2.08% p.a. Comparison rate
n/a
Rate Slasher Variable Investment Loan (Min Deposit 30%)
2.29% p.a.
2.36% p.a. Comparison rate
n/a
Investor Capitalizer Full Doc (Min Deposit 20%)
2.19% p.a.
2.29% p.a. Comparison rate
n/a
2 Year Fixed Rate Wealth Maximizer packaged
2.29% p.a.
3.13% p.a. Comparison rate
n/a
3 Year Fixed Rate Wealth Maximizer packaged
2.44% p.a.
3.1% p.a. Comparison rate
n/a
1 Year Fixed Rate Wealth Maximizer packaged
2.29% p.a.
3.19% p.a. Comparison rate
n/a
Investor Capitalizer Full Doc (Min Deposit 10%)
2.49% p.a.
2.58% p.a. Comparison rate
n/a
Investor Rate Cutter (Min Deposit 10%)
2.49% p.a.
2.58% p.a. Comparison rate
n/a
4 Year Fixed Rate Wealth Maximizer packaged
3.09% p.a.
3.23% p.a. Comparison rate
n/a
Investor Rate Lovers Variable Home Loan (Min Deposit 10%)
2.69% p.a.
2.75% p.a. Comparison rate
n/a
5 Year Fixed Rate Wealth Maximizer packaged
3.29% p.a.
3.29% p.a. Comparison rate
n/a
Investor Capitalizer Alt Doc (Min Deposit 20%)
3.29% p.a.
3.38% p.a. Comparison rate
n/a

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 mortgage repayments

at interest rate 1.77%

Total interest payable

$0

Total loan repayments

$0

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 home loans

How do you compare home loans?

To compare home loans, you can assess the components of the loan against your own financial situation and other mortgages in the market.

Look at the interest rate, rate type (fixed or variable), loan fees, features, loan term, repayment frequency and more to find a home loan that fits with your budget and property goals.

Then, use comparison tools like comparison tables, calculators, or RateCity's Real Time RatingsTM to create a short list of home loan options, and decide which home loan best suits your needs.

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.

What is a home loan?

A home loan is a finance product that allows a home buyer to borrow a large sum of money from a lender for the purchase of a residential property. The home is then put up as "security" or "collateral" on the loan, giving the lender the right to repossess the property in the case that the borrower fails to repay their loan.

Once you take out a home loan, you'll need to repay the amount borrowed, plus interest, in regular instalments over a predetermined period of time.

The interest you're charged on each mortgage repayment is based on your remaining loan amount, also known as your loan principal. The rate at which interest is charged on your home loan principal is expressed as a percentage.

Different home loan products charge different interest rates and fees, and offer a range of different features to suit a variety of buyers’ needs.

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. 

Do you compare mortgages using the comparison or advertised rate?

A lot of Australians compare home loans using the advertised interest rate, which indicates how much interest you’ll be charged on your mortgage repayments. The lower your rate, the cheaper your home loan should be.

However, interest charges aren’t the only cost associated with home loans. Most mortgage lenders also charge fees on their home loans. A mortgage with a low interest rate and high fees can sometimes cost more than a mortgage with a high interest rate and low fees.

A home loan’s comparison rate combines the cost of interest with the cost of standard fees and charges into a single percentage rate. Mortgage lenders are required to display a comparison rate alongside their advertised rate to better indicate the home loan’s overall cost.

Keep in mind that to ensure consistency, all comparison rates are calculated assuming a $150,000 principal and interest mortgage with a 25 year term. As your home loan may be different, the comparison rate may not accurately reflect exactly how much your home loan may cost. Also, the comparison rate doesn’t include every home loan fee and charge, so it’s still important to compare home loans and read the fine print before you apply.

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.

Why does Westpac charge an early termination fee for home loans?

The Westpac home loan early termination fee or break cost is applicable if you have a fixed rate home loan and repay part of or the whole outstanding amount before the fixed period ends. If you’re switching between products before the fixed period ends, you’ll pay a switching break cost and an administrative fee. 

The Westpac home loan early termination fee may not apply if you repay an amount below the prepayment threshold. The prepayment threshold is the amount Westpac allows you to repay during the fixed period outside your regular repayments.

Westpac charges this fee because when you take out a home loan, the bank borrows the funds with wholesale rates available to banks and lenders. Westpac will then work out your interest rate based on you making regular repayments for a fixed period. If you repay before this period ends, the lender may incur a loss if there is any change in the wholesale rate of interest.

When does Commonwealth Bank charge an early exit fee?

When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.

The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:

  • If you switch your loan from fixed interest to variable rate
  • When you apply for a top-up home loan
  • If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
  • When you prepay the entire outstanding loan balance before the end of the fixed interest duration.

The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay. 

How do you find cheap home loans?

With so many interest rate options and repayment types available, finding the cheapest home loan may depend on the type of loan you choose.

Whether you’re looking for an owner-occupier or investor loan, with interest-only or principal and interest repayments, on a fixed or variable interest rate, the cheapest home loan rate available may vary greatly.

One way to find the cheapest option for you is to narrow down your search and compare the options that best suit your individual requirements. RateCity’s home loan comparison tables can help you get started on your search and take the hassle out of shopping around.