Reviews for Reduce Home Loan for construction loan?

LSavesome on 03/03/2022 - 12:28

Hi,

I am planning to take a land + construction home loan. The rates advertised by Reduce Home Loans are pretty good compared to other competitors along with 3000 cashback for purchase.

The fixed rate for 2 years with them is 2.69 and the next best I am getting in market is about 3pct.
Variable rate is 1.99 which is available with other banks as well like Adelaide.

Does anyone have past experience with them? Can you please provide feedback?

Also the fees they are charging for construction loan are quite high totalling to 2365!!
Breakup as below
$330 Solicitor (Does not cover legal disbursements, government charges, & PEXA fee)
· $250 Estimated Cost for as if Complete Valuation (If quote exceeds $250 valuation charge payable at cost)
· $295 Funder Contract Processing Fee
· $440 Application Fee
· $500 Funder Construction Administration Fee
· $550 Progress Inspection Valuations (Payable @ Settlement)

So I am bit sceptical and hoping to get some reviews.

Financial

Comments

  • Hybroid on 03/03/2022 - 13:42
    +1

    Hmm, never heard of them but I am looking at home loan options. Filled in the tedious dozen pages and they're offering 1.77% on Principal + Interest for up to $1,000,000 loan over 30 years. Seems to good to be true?

    Next few pages asks you to digitally sign and accept credit check so didn't for now.

    https://i.imgur.com/urHaGvS.png

  • KaTst3R on 03/03/2022 - 20:57
    +1

    One of the google reviews say that the funding entity is Well Nigh capital funding NO 1 Pty Ltd. The website for this company is very dodgy looking and Dun and Bradstreet says that WELL NIGH PTY LTD only has 4 employees. This is interesting….Absolutely never heard of these guys before.

    http://www.wellnigh.com.au/
    https://www.dnb.com/business-directory/company-profiles.well…

    Overall reviews for Reduced Home Loan just indicate they are very slow to process.

    • Savesome on 05/03/2022 - 09:19

      Interesting to know. Makes me sceptical about using them for getting loan

  • miwahni on 05/03/2022 - 01:27

    I can't give FB about this lender, but am curious if the rates you quoted are available for construction loans? I highly doubt that the fixed rate would be, due to the nature of the product. The admin fee seems high but the others would just be covering costs with a bit of padding.

    • Savesome on 05/03/2022 - 09:19

      Thanks for your feedback on the fees. The rates are what they quote today. It's backed by Adelaide bank is what they told me.

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