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Owner Occupied Home Loan 2.47% @ Reduce Home Loans

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Owner Occupied Home Loan 2.47% @ Reduce Home Loans
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Axytrix on 03/03/2020 - 14:51 reduceloans.com.au (414 clicks)
Last edited 03/03/2020 - 15:54 by 1 other user

Since the RBA cut interest rates to a record low 0.5% this afternoon, Reduce Loans have slashed their variable home loan rate by 0.23% making it a very attractive 2.47% Comparison Rate.

Loan: RATE LOVERS
Max LVR: 90% - add 0.22% LMI or 80%.
Min Loan: $50,000
Max Loan: $850,000: 70.01% - 80% LVR. $1,500,000: <70% LVR.
Offset account: Optional offset account for $10 month.
No Upfront or Ongoing Fees: The loan has no application fees, annual, monthly fees or settlement fees.
Third Party Valuation Fee: No fee up to $250 (Loan amounts under $200,000 incur a valuation fee at cost, estimate $250)
Third Party Legal Fees: No fee up to $297 (Loans amounts under $200,000 incur legal fees at cost, estimate $297)
Discharge Fee: $895

Would like to know if anyone amongst the community have had any experience with these guys.

Financial Home Loan Loan

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closed Comments

  • amanda89 on 03/03/2020 - 15:00
    -1

    Are they part of the first home buyers scheme?

    • apra143 on 03/03/2020 - 16:03
      +1

      Wow, thanks for those useful links. Should really be part of the deal post itself.

      Looks like we should steer clear of Reduce Home loans entirely.

  • Damonator84 on 03/03/2020 - 15:06
    +1

    Loanshark lending.

  • thydzik on 03/03/2020 - 15:06

    Reduce are a streamlined broker, whoever is the lender for these rates are fairly incompetent.
    didn't know how to read a credit report, kept asking me about the credit enquiries, and never asked about the credit accounts.

    • El-Rhi on 10/03/2020 - 21:22

      The lender probably uses ‘negative’ only credit report so they would only see enquiries and not the accounts. Only lenders part of CCR see enquiries and accounts

  • BluBoy on 03/03/2020 - 15:08
    +1

    … Why not just pass on the full rate.

    2 basis points is surely worth the PR opportunities alone? It's $5 a month for a $500k loan size?!

    • bthaddad on 03/03/2020 - 16:05

      I think you are overestimating the margins on these products. Might only be a few bp all said and done.

  • knobbs on 03/03/2020 - 15:14
    +4

    $900 discharge fee dam

  • countmein on 03/03/2020 - 15:17
    +1

    Anyone knows if their offset account guaranteed by gov? Upto 250k i think

  • rxjb on 03/03/2020 - 15:19
    +2

    I used reduceloans 12 months ago. Highly recommended. Process was all done via phone/email and was relatively painless.

  • RocketSwitch on 03/03/2020 - 15:19
    -1

    Don't trust these guys at all

  • LuckyDrew on 03/03/2020 - 15:20
    +2

    Yikes that discharge fee is nearly three times that of the big banks. Come for the low rate…stay because their discharge fee is criminally high.

    • dcep on 03/03/2020 - 15:46
      +1

      If you’re worried that your lender may simply call the fee a different name, don’t be – that is illegal too. Any lender trying to impose a home loan exit fee, or a similar fee by a different name, can be heavily fined.
      https://www.domain.com.au/advice/do-you-have-to-pay-an-exit-…

      Not true then

      • LuckyDrew on 03/03/2020 - 16:43

        I recently refinanced away from CBA and their discharge fee was $350.
        I reckon this mob would try and argue their astronomical fee represents their internal time and costs to refinance. Dodgy as hell.

  • Loki556 on 03/03/2020 - 15:33
    +4

    When I was with these guys, my rate went up three times over 1 year period, when rates in general were staying put. Don’t trust them at all.

    • matt-ozb on 04/03/2020 - 05:59

      Investment loan? Was your experience at the time when all investment loans had rate rises a few years ago?

      • Loki556 on 04/03/2020 - 07:59

        No, PPOR

  • xeion on 03/03/2020 - 15:40
    +2

    Incompetent staff who requested multiple times for new documents that I'd provide within 24 hours. Only for them to request the exact same thing days later with the new dates.

    Also current customer who hasn't recevied previous rate cuts.

  • matt-ozb on 03/03/2020 - 15:43
    +3

    Reduce Home Loans progress … owner occupied, $400K, 40% LVR, two full-time permanent incomes.

    Dec 2016 – sign-up at advertised rate of 3.35%
    June 2018 – increase from 3.35% to 3.50%
    June 2019 – decrease from 3.50% to 3.25%
    July 2019 – decrease from 3.25% to 3.05%
    Nov 2019 – decrease from 3.05% to 2.90%
    Dec 2019 – decrease from 2.90% to 2.79% (after rate review)

  • OMG Bargain on 03/03/2020 - 17:32
    +4

    Go with Athena - they dropped their rate too and they are truly no fees… even if you decide to leave. (No offset account option though)

  • MuddyClear on 03/03/2020 - 20:42
    • Exorbitant exit fees
    • Unexplained rate increases for existing customers
    • Poor customer service
  • makeahit on 03/03/2020 - 21:31
    +1

    Discharge fee is the killer

  • damz on 03/03/2020 - 22:58
    +1

    Don't waste your time with them. They wasted mine. Inefficient staff and inefficient process.

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