Reduce Home Loans

Economizer Cash Back Variable Home Loan (Principal and Interest) (LVR < 80%)

Advertised Rate

2.49%

Variable

Comparison Rate*

2.54%

Maximum LVR
80%
Real Time Rating™

3.31

/ 5
Monthly Repayment

$1,568

based on $350,000 loan amount for 25 years

Advertised Rate

2.49%

Variable

Comparison Rate*

2.54%

Maximum LVR
80%
Real Time Rating™

3.31

/ 5
Monthly Repayment

$1,568

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

$1,568

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%
  • No ongoing fees
  • Extra repayments and redraw facility
  • Free redraw facility
  • No offset account
  • 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

$0

Application method

Online

Phone

Broker

In branch

Specials
  • Cashback Get between $1,000 to $10,000 as cashback on loans above $250,000.
    $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. Available for new loans and refinancing.

Other Benefits

100% offset account available at $10 per month. 0.08% loyalty discount on the interest rate after the 5th anniversary of the loan.

Pros and Cons

  • Interest rates ranked in the best 20%
  • No ongoing fees
  • Extra repayments and redraw facility
  • Free redraw facility
  • No offset account
  • 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

$0

Application method

Online

Phone

Broker

In branch

Specials
  • Cashback Get between $1,000 to $10,000 as cashback on loans above $250,000.
    $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. Available for new loans and refinancing.

Other Benefits

100% offset account available at $10 per month. 0.08% loyalty discount on the interest rate after the 5th anniversary of the loan.

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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.

What is the ratings scale?

The ratings are between 0 and 5, shown to one decimal point, with 5.0 as the best. The ratings should be used as an easy guide rather than the only thing you consider. For example, a product with a rating of 4.7 may or may not be better suited to your needs than one with a rating of 4.5, but both are probably much better than one with a rating of 1.2.

Do other comparison sites offer the same service?

Real Time RatingsTM is the only online system that ranks the home loan market based on your personal borrowing preferences. Until now, home loans have been rated based on outdated data. Our system is unique because it reacts to changes as soon as we update our database.

Mortgage Calculator, Property Value

An estimate of how much your desired property is worth. 

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.

Mortgage Calculator, Loan Purpose

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

Mortgage Calculator, Deposit

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

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 appreciation or depreciation of property?

The increase or decrease in the value of a property due to factors including inflation, demand and political stability.

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.

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.

Mortgage Calculator, Repayment Frequency

How often you wish to pay back your lender. 

What is breach of contract?

A failure to follow all or part of a contract or breaking the conditions of a contract without any legal excuse. A breach of contract can be material, minor, actual or anticipatory, depending on the severity of the breaches and their material impact.

What is an ombudsman?

An complaints officer – previously referred to as an ombudsman -looks at formal complaints from customers about their credit providers, and helps to find a fair and independent solution to these problems.

These services are handled by the Australian Financial Complaints Authority, a non-profit government organisation that addresses and resolves financial disputes between customers and financial service providers.

Mortgage Calculator, Loan Results

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

Mortgage Calculator, Repayment Type

Will you pay off the amount you borrowed + interest or just the interest for a period?

What is a redraw fee?

Redraw fees are charged by your lender when you want to take money you have already paid into your mortgage back out. Typically, banks will only allow you to take money out of your loan if you have a redraw facility attached to your loan, and the money you are taking out is part of any additional repayments you’ve made. The average redraw fee is around $19 however there are plenty of lenders who include a number of fee-free redraws a year. Tip: Negative-gearers beware – any money redrawn is often treated as new borrowing for tax purposes, so there may be limits on how you can use it if you want to maximise your tax deduction.

Does each product always have the same rating?

No, the rating you see depends on a number of factors and can change as you tell us more about your loan profile and preferences. The reasons you may see a different rating:

  • Lenders have made changes. Our ratings show the relative competitiveness of all the products listed at a given time. As the listing change, so do the ratings.
  • You have updated you profile. If you increase your loan amount, the impact of different rates and fees will change which loans are the lowest cost for you.
  • You adjust your preferences. The more you search for flexible loan features, the more importance we assign to the Flexibility Score. You can also adjust your Flexibility Weighting yourself, which will recalculate the ratings with preference given to more flexible loans.

Mortgage Calculator, Repayments

The money you pay back to your lender at regular intervals. 

Mortgage Calculator, Interest Rate

The percentage of the loan amount you will be charged by your lender to borrow.