Reduce Home Loans

Cash Back Hero Variable (Principal and Interest) (LVR < 80%)

Advertised Rate

2.59%

Variable

Comparison Rate*

2.64%

Maximum LVR
80%
Real Time Rating™

4.40

/ 5
Monthly Repayment

$1,586

based on $350,000 loan amount for 25 years

Advertised Rate

2.59%

Variable

Comparison Rate*

2.64%

Maximum LVR
80%
Real Time Rating™

4.40

/ 5
Monthly Repayment

$1,586

based on $350,000 loan amount for 25 years

Calculate repayment for Reduce Home Loans product

I'd like to borrow

$

Loan term

years

Your estimated repayment

$1,586

based on $350,000 loan amount for 25 years

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Pros and Cons

Pros and Cons

  • Interest rates ranked in the best 20%
  • Lower than average interest rate
  • No ongoing fees
  • Parents can sign as guarantor
  • No offset account
  • Discharge fee at end of loan
  • Maximum loan amount is limited to 80% of the property's value
  • No repayment holidays

Reduce Home Loans Features and Fees

Reduce Home Loans Features and Fees

Details

Maximum LVR

80%

Total Repayments

Next LVR

Interest rate type

Variable

Borrowing range

Suitable for

Owner Occupiers

Loan term range

1 - 30 years

Principal & interest

Interest only

Applicable states

ACT, NSW, NT, QLD, SA, TAS, VIC, WA

Make repayments

Fortnightly, Monthly, Weekly

Features

Extra repayments

Unlimited extra repayments

Redraw facility

Redraw fee: $0

Split interest facility

Loan portable

Repayment holiday available

Allow guarantors

Available for first home buyers

Fees

Total estimated upfront fees

$697

Application fee

$0

Valuation fee

At Cost

Settlement fee

$0

Other upfront fee

$697

Ongoing fee

$0

Discharge fee

$500

Application method

Online

Phone

Broker

In branch

Specials
  • Cashback Get between $1,000 to $10,000 as cashback on loans above $250,000. Available for new loans and refinancing.
    $2,000 cashback for loans < $1 mn. $4,000 cashback for loans < $2 mn. $6,000 cashback for loans < $3 mn. $8,000 cashback for loans < $4 mn. $10,000 cashback for loans > $4 mn. Min loan amount of $250,000 to receive cashback offer.

Other Benefits

100% offset account available at $10 per month. 0.08% discount on rate after 60 months.

Pros and Cons

  • Interest rates ranked in the best 20%
  • Lower than average interest rate
  • No ongoing fees
  • Parents can sign as guarantor
  • No offset account
  • Discharge fee at end of loan
  • Maximum loan amount is limited to 80% of the property's value
  • No repayment holidays

Reduce Home Loans Features and Fees

Details

Maximum LVR

80%

Total Repayments

Next LVR

Interest rate type

Variable

Borrowing range

Suitable for

Owner Occupiers

Loan term range

1 - 30 years

Principal & interest

Interest only

Applicable states

ACT, NSW, NT, QLD, SA, TAS, VIC, WA

Make repayments

Fortnightly, Monthly, Weekly

Features

Extra repayments

Unlimited extra repayments

Redraw facility

Redraw fee: $0

Split interest facility

Loan portable

Repayment holiday available

Allow guarantors

Available for first home buyers

Fees

Total estimated upfront fees

$697

Application fee

$0

Valuation fee

At Cost

Settlement fee

$0

Other upfront fee

$697

Ongoing fee

$0

Discharge fee

$500

Application method

Online

Phone

Broker

In branch

Specials
  • Cashback Get between $1,000 to $10,000 as cashback on loans above $250,000. Available for new loans and refinancing.
    $2,000 cashback for loans < $1 mn. $4,000 cashback for loans < $2 mn. $6,000 cashback for loans < $3 mn. $8,000 cashback for loans < $4 mn. $10,000 cashback for loans > $4 mn. Min loan amount of $250,000 to receive cashback offer.

Other Benefits

100% offset account available at $10 per month. 0.08% discount on rate after 60 months.

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FAQs

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.

Remaining loan term

The length of time it will take to pay off your current home loan, based on the currently-entered mortgage balance, monthly repayment and interest rate.

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.

Mortgage Calculator, Loan Results

These are the loans that may be suitable, based on your pre-selected criteria. 

What is the flexibility score?

Today’s home loans often try to lure borrowers with a range of flexible features, including offset accounts, redraw facilities, repayment frequency options, repayment holidays, split loan options and portability. Real Time Ratings™ weights each of these features based on popularity and gives loans a ‘flexibility score’ based on how much they cater to borrowers’ needs over time. The aim is to give a higher score to loans which give borrowers more features and options.

What do mortgage brokers do?

Mortgage brokers are finance professionals who help borrowers organise home loans with lenders. As such, they act as middlemen between borrowers and lenders.

While bank staff recommend home loan products only from their own employer, brokers are independent, so they can recommend products from a range of institutions.

Brokers need to be accredited with a particular lender to be able to work with that lender. A typical broker will be accredited with anywhere from 10 to 30 lenders – the big four banks, as well as a range of smaller banks, credit unions and non-bank lenders.

As a general rule, brokers don’t charge consumers for their services; instead, they receive commissions from lenders whenever they place a borrower with that institution.

Mortgage Calculator, Loan Term

How long you wish to take to pay off your loan. 

What is the amortisation period?

Popularly known as the loan term, the amortisation period is the time over which the borrower must pay back both the loan’s principal and interest. It is usually determined during the application approval process.

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.

Why is it important to get the most up-to-date information?

The mortgage market changes constantly. Every week, new products get launched and existing products get tweaked. Yet many ratings and awards systems rank products annually or biannually.

We update our product data as soon as possible when lenders make changes, so if a bank hikes its interest rates or changes its product, the system will quickly re-evaluate it.

Nobody wants to read a weather forecast that is six months old, and the same is true for home loan comparisons.

Mortgage Calculator, Deposit

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

How much information is required to get a rating?

You don’t need to input any information to see the default ratings. But the more you tell us, the more relevant the ratings will become to you. We take your personal privacy seriously. If you are concerned about inputting your information, please read our privacy policy.

Mortgage Calculator, Property Value

An estimate of how much your desired property is worth. 

Why should you trust Real Time Ratings?

Real Time Ratings™ was conceived by a team of data experts who have been analysing trends and behaviour in the home loan market for more than a decade. It was designed purely to meet the evolving needs of home loan customers who wish to merge low cost with flexible features quickly. We believe it fills a glaring gap in the market by frequently re-rating loan products based on the changes lenders make daily.

Real Time Ratings™ is a new idea and will change over time to match the frequently-evolving demands of the market. Some things won’t change though – it will always rate all relevent products in our database and will not be influenced by advertising.

If you have any feedback about Real Time Ratings™, please get in touch.

What factors does Real Time Ratings consider?

Real Time RatingsTM uses a range of information to provide personalised results:

  • Your loan amount
  • Your borrowing status (whether you are an owner-occupier or an investor)
  • Your loan-to-value ratio (LVR)
  • Your personal preferences (such as whether you want an offset account or to be able to make extra repayments)
  • Product information (such as a loan’s interest rate, fees and LVR requirements)
  • Market changes (such as when new loans come on to the market)

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 Calculator, Loan Purpose

This is what you will use the loan for – i.e. investment. 

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.

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.