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Reduce Home Loans Drops Rates to 3.35% on Standard Variable (3.35% CR)

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Reduce Home Loans Drops Rates to 3.35% on Standard Variable (3.35% CR)
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Associatedjjkateam on 04/08/2016 - 16:48 reduceloans.com.au (558 clicks)
Last edited 04/08/2016 - 17:55 by 1 other user

Rate Buster Standard Variable Home Loan slashed

3.35% 3.35% Comparison.

up to $500,000

Set up fees:

Application Fee
$440
Establishment Fee
$0
Valuation
$264
Or actual cost if not paid on application lodgement
Legal Fees
$330
Annual Fee
$0
Settlement fees
$130

or add 0.10% to have those fees wiped.

We give our customers a discount after 5 years which will bring the comparison rate down.

Reduce Home Loans is a multi award winning Australian Owned and Operated Home Loan Company. Since 2010 we have been passionate about helping our clients find not only the lowest Interest rates on the market but Home loans that are tailored to their individual needs. Our Home Loan range has been awarded 5 stars by Canstar and awarded Best of the Best Cheapest Home Loan by Money Magazine.

Australian Credit Licence No: 388053

Financial Home Loan Loan

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closed Comments

  • wildstone on 04/08/2016 - 16:52

    Application Fee
    $440

    Establishment Fee
    $0

    Valuation
    $264
    Or actual cost if not paid on application lodgement

    Legal Fees
    $330

    Annual Fee
    $0

    Settlement fees
    $130

    So total set up cost is $1164?

    • Looking4Bargians on 04/08/2016 - 16:54

      and more over.. you have to pay extra for Switching to your current mortgage bank.

    • Associatedjjkateam @ Reduce Home Loans on 04/08/2016 - 16:57
      +1

      That is correct or add .10% to have those fees wiped.

  • Looking4Bargians on 04/08/2016 - 16:53
    +3

    Great but can we trust you and if you broke in couple of years.. who is going to support us ?

    • Associatedjjkateam @ Reduce Home Loans on 04/08/2016 - 16:59

      Hi,

      I don't understand your question? "if you broke in couple of years.. who is going to support us ?"

      • Looking4Bargians on 04/08/2016 - 17:02
        +2

        Something goes wrong. credibility or any financial issue with you guys.?

        • dein_gesicht on 04/08/2016 - 17:16
          +12

          Who cares if they go bankrupt - you have their money not the other way around.

          Seriously, some people….

        • SuiCid3 on 04/08/2016 - 17:29
          +1

          @dein_gesicht: And they have the deeds to your property?

        • Russ on 04/08/2016 - 17:31

          @SuiCid3:
          … Which a liquidator could then sell and give the proceeds to the company's creditors.

        • kipps on 04/08/2016 - 22:56

          @Russ: Under Torrens system, the mortgagee does not have "deeds to [the] property". The concern of the mortgagee going bust really does not matter if you're the one who owes the mortgagee.

        • dein_gesicht on 05/08/2016 - 08:04

          @SuiCid3: Hahahaha you own the deed and they have a mortgage on it. You don't really understand how mortgages work so I would do some reading.

          Worst case scenario: they go bankrupt, then another financial institution will buy all the mortgages. If the new bank increases the interest rate, then you can refinance - this is what happened a lot during the GFC.

  • homersyd on 04/08/2016 - 17:14
    +1

    only 500k….not sure how useful that is in sydney lol

    • SuiCid3 on 04/08/2016 - 17:29
      +5

      You can always buy one of those car spaces!

      • fritzsticker on 05/08/2016 - 01:24

        So a car spot in sydney cost $500k?? Whhaaatttt

        • homersyd on 05/08/2016 - 10:09

          hahaha dont worry SuiCid3 was just exaggerating, car spaces could cost upwards of 100k+
          500k would buy u a studio in sydney CBD (or maybe an old 1 bedder if you're lucky).

  • kasp on 04/08/2016 - 17:17

    Tempted currently on 3.89% but my current place hasn't announced anything so I guess I will wait until they notify us on whats happening.

    If they pass on the full cut it wouldn't be worthwhile me jumping ship but if they don't it makes it worthwhile.

    However one concern I have is I have never heard of reduce home loans. Who is it backed by?

  • ShannonIngram on 04/08/2016 - 17:29
    +1

    Good rate… but how in the world is your comparison rate the same as the interest rate? This is blatant false advertising.

    Plug $1164 in upfront fees into a comparison rate calculator such as http://www.anz.com/common/calculators/MortgageRateAU/aapr.as… and you'll get a comparison rate of 3.46%. That is assuming there are no undisclosed ongoing or discharge costs.

    • Associatedjjkateam @ Reduce Home Loans on 04/08/2016 - 17:40
      -1

      FYI We give our customers a discount after 5 years which will bring the comparison rate down.

      • kipps on 04/08/2016 - 22:57
        +2

        How much is the undefined discount? I do not see how a contingent discount which only occurs after 5 years can somehow be used to avoid properly stating the comparison rate.

  • Moderatorhamza23 on 04/08/2016 - 17:40

    OP can you please post the comparison rate in the title, an accurate one that includes the $1164 setup fees and anything else. From my understanding, it is impossible for the comparison rate to be the same 3.39% as the variable rate.

    Thanks

    • Associatedjjkateam @ Reduce Home Loans on 04/08/2016 - 17:41

      FYI We give our customers a discount after 5 years which will bring the comparison rate down.

    • twocsies on 04/08/2016 - 18:38
      +2

      According to the details above, to eliminate the fees, add 0.1%. So that would be a comparison rate of 3.45% if you don't want to pay the setup fees.

      And if you planned on staying with the lender for more than the full five years, apparently there are some undisclosed savings. Not sure why they don't just say what those discounts are, but it's a bit iffy.

  • Deal finder on 04/08/2016 - 18:08

    We understand that u give discount after 5 years but can u put the current actual comparison rate in the title.

  • Deal finder on 04/08/2016 - 18:09
    +1

    Moreover most of the ozbargainer might not be with u in 5 years time…:)

  • paaj on 04/08/2016 - 18:27
    +3

    What is the discount after 5 years?

  • No on 04/08/2016 - 18:36
    +1

    Will I always be paying the same interest rate as advertised on your home page?

  • marcnunes on 04/08/2016 - 18:42
    +2

    For those afraid to go to a small no bank lender please read ->

    https://www.finder.com.au/home-loans/non-bank-lenders

    Reduce Home Loans are the new kids on the block and in case they go bust it is their problem and you can move your loan somewhere else. They cannot force you to pay your house in full.

    For those still afraid, please keep feeding these greedy banks with their billions in profits every year.

  • marcnunes on 04/08/2016 - 18:50
    +1

    I am yet to meet a bank or no-bank with 3.44% interest rate with no set up or ongoing fees. I am with ING but I will fill the forms to leave this weekend. ING was great to offer a lot or perks like home loan bonus, cash back on paywave, free movies etc. When they have you as a customer, they stop giving you that and good rates just to new customers.
    Ubank is similar.
    I had enough from them.

    • LoungeLizard on 04/08/2016 - 20:31

      Good luck finding a bank that will treat existing customers any better. As long as they attract more new customers than they lose existing ones, it's a profitable business model

    • marcnunes on 05/08/2016 - 20:37
      +1

      ING passed 0.12%. How nice. Go and milk someone else because I am leaving you.

  • Tony76 on 04/08/2016 - 20:42
    +1

    hi, do you have a redraw facility? If so, is there a cost attached?

  • Looking4Bargians on 05/08/2016 - 16:01

    So anyone considering it ?

    • Underlord on 05/08/2016 - 16:44

      Thinking about it.. I'm with ING but I'm annoyed about them removing the home loan bonus and then reducing rates for new customers. Poor treatment of existing customers.

      • Looking4Bargians on 05/08/2016 - 17:12

        That's how they earn more money via engaging new customer on Application Fees or other fees…

  • Underlord on 05/08/2016 - 17:20

    Op, can you please provide details of the online banking system for the offset account?

  • marcnunes on 05/08/2016 - 20:34
    +2

    Yes OP.
    Could you please:
    1- Disclose the discharge fees in case we decide to leave you in the future.
    2- Is there any fee to withdraw money from you offset? Which ATM can be used free of charge?

    This is the only thing holding me to refinance with you. Thanks

    • linni on 06/08/2016 - 09:30

      Would also love to know the answer to this without having to leave my phone number.

      • marcnunes on 06/08/2016 - 12:44

        Got an answer from them.
        It can use Red ATM and WestPac to withdraw with no fee.

        It is $795 to fully discharge. :-0

        • userblocked on 22/08/2016 - 14:05

          Have you refinanced with them?

  • rambokid on 06/08/2016 - 09:25

    I wouldn't go with someone who doesn't understand the concept of comparison rate And throws some false promises of future cuts to get business

    • marcnunes on 06/08/2016 - 14:06

      Reduce loans comparison rates are the same as their advertised rates.
      ING currently offers 3.79% however with their annual fees, it gets to 4.01%. This is for the "lucky" new customers. My rates with them is 3.92% and my comparison should be around 4.12%

      Of course things might change in the future like it did change a bit with loans.com.au
      Banks and no-banks when they get many customers and start to forget about the competitiveness and focus more on their profits.
      It will be very sad if they increase their rates like the banks do specially with a discharge fee so high like this.

      But they passed the full rba rate this time and they have been doing this since they came to the party. The others…

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