31 questions from our users
Why are the fees so huge and why are so many members accusing you of bait and switch, where months after they have their loans established they get a letter advising their interest rates are going up?
Some of the comments are quite serious and places doubts on whether Reduce can then be trusted or not if they sign you up on one rate, only to increase it in a few months. Has many people experienced it?
Also people are saying their exit fees are very high. How high are they compared to others?
I am considering refinancing soon with reduce and I was wondering if there rates go up soon after changing over. I was convinced a few years ago by a broker to refinance with AFG and 2 days after my loan changed over the rate went up quite a bit and I would have been better off staying with Peoples choice. I don't want to waste my time changing if this will happen again.
I am an existing customer my rate was 2.42% it will soon reduce to 2.27%. I have not experienced any issues with rates, although I have noticed they are now advertising at 1.77% so do not reward loyalty. The process to refinance is beyond slow, frustrating and you need to jump through hoops expect it to be even months before it is finalised. So you need to weight that up.
I am also an existing customer at current rate of 3.94% IO Investor loan when current advertised is 3.19% for the same product. Contacted my manager who said that no improvements to rate are possible. I'm now looking at refinance for 2 loan products elsewhere closer to the advertised Reduce interest rate. No reward once you are signed up.
They don’t reward loyalty. It’s disgusting they advertise new loans 0.5% lower than loyal customers. Also the discharge fees are excessive!
Advertised rate of 1.98% comparison while I’m still paying 2.47%. When are dropping existing customers rates? Might be time to consider switching.
Has anyone received the new rate of 2.39 percent. I queried with Mezy and they have said the rate is only for new customers which seems really unfair and not exactly a reward for loyalty. Anyone able to have this reviewed?
Been with reduce for a couple of years and they do this all the time.
Hi bmarshall, are you saying they don't offer existing customers the lower rate all the time, or you can ask them to review and they will? I'm refinancing and tossing up between reduce and Athena, I like Athena for this very reason, they give existing customers their lowest rate available
Hi I currently bank with CBA and have my current mortgage for my home and for a land. I am currently planning to buy a house and land package and sell my current house. We also have 2 car loans. How can I work this?
Hi Jackie, thanks for your question. Give us a call on 1300 733 823 and you can chat directly with our Finance Managers who can discuss options tailored to your situation. Otherwise, you can email your query to email@example.com with details of your situation and our Finance Managers will get back to you.
When will the recent RBA cut be passed onto your existing customers?
I was told it will be passed on straight away.
Their rates have been slashed only for new customers, not existing ones. I emailed their customer service team & got the response that they cannot confirm yet & are still coordinating with the funder. Dunno how much longer that's going to take.
I’m sure if rates were going up they would pass on the rate increase immediately! I wasn’t aware that ‘variable’ rate product meant it can go up but not down!
Given I have the exact same product as the one they are advertising as 2.44% online, how can it be ethical that they charge us a different price??
how long did it take you from sending the contract of sale and loan application to reduce home loans to getting unconditional approval?
A bit of background- I have found it hard getting an extension on a cooling off period in the past since you have to wait for confirmation of formal approval from the bank before allowing the cooling off to end.
When will you be reducing the rates for your existing customers for P and I investor loans for the October RBA cut? I see you have reduced the rates for new customers but have passed zero to existing.
Is it usual for the lender, Perpetual trust, to recommend that we engage a solicitor to check the documents? (another extra cost) Have never had to do this when refinancing with the banks. Have other customers done this?
I think it is part of their duty of care to mention that so the process is transparent. Almost every interaction Ive had with big and small banks and any sort or realestate settlements usually mentions this. Pretty standard, nothing to fear.
Thanks Kit, much appreciated. If you don't mind me asking, did you speak to a Solicitor? We're wondering if we can trust perpetual without seeing a solicitor.
Totally understand that it's a personal choice, just wondering if people take the risk.
i was told from reduce that it would cost me 250$ and that would be payed back at re-finance settlement.I am now told to ad 150$ to speed up the process.I was just told that i have to pay 495$ for a valuation fee, which was not told to me upfront.I am only borrowing 30% of the value of the property, so why do you need to do a valuation?
We did receive the $250 refund at settlement. I’m not sure how much you are borrowing but a lot of the fees don’t apply if you borrow over a certain amount.
As you are borrowing only 30% of the value of your property, it may not have reached the threshold where most of the fees are waived.
Regarding them needing a valuation. Yes we did find them very thorough with their checks. I guess it’s because everything is done online with no face to face contact. Also with these low margin loans, they want to make absolutely sure it’s low risk.
We did find the process a bit of a drawn out drag but in the end it was worth it for us. Some of these issues are the price we pay for to get these low rates.
They forgot to refund our fee but did so when reminded them.
I am a 58 year old single female looking to refinance my home loan
Amount needed to cover the home loan..loc and a credit card is approximately $405,000
Home is valued at around $640,000
My gross annual income is $65K
$32K of my income is a TTR Income Stream..
Remaining income is from my small business earnings
Would really like to know where I stand with the figures I have supplied
Also am I able to be put in touch with a broker to guide me through the application process..
I live in Adelaide..
Thanking you in advance..
For people with variable home loans with Reduce, could you please let me know what interest rate you’re currently being charged?
I know Reduce are advertising a new low rider variable rate of 3.09% and rate lovers variable rate of 3.19%, but I’ve read reviews and responses where customers are being charged higher variable rates than advertised.
Would really like to avoid any refinancing aftershock, so any responses would be gratefully received.
Thank you :)
In the beginning the salesman stated to us that if an interest rate cut were to occur that we would receive the full entitlement. When we signed up it was 3.44% and we've just been told that it will reduce to 3.24% but not until the end of July. There was no good reason given to us why we were not able to get the full interest rate cut. Existing customers don't get the new rates offered - it seems it is at the lenders discretion as to how much of a cut is passed on to the customer. Hope this helps you.
We signed up one year ago. Currently on 3.39%, so 0.3% higher than what is advertised (not taking into account early July rate cut). Not particularly happy with the obvious focus on new customers as opposed to existing.
Same as P. Abbott.
When will the 0.25% reduction in interest rate take effect (for variable interest rates)?
Mezy called me today and said it is only going to be 0.2% decrease through Adelaide Bank
Is it managed by Mezy? We are with a different broker but the loan is managed by Mezy.
I just heard yesterday I am getting an additional decrease to 3.66%.... mine is managed by Mezy, but the lender is Adelaide Bank apparently
General question to all. True Reduce home loan is very competitive in market however need to know any shock after becoming customer. Any unknown rate increases then market movements? Any unadvertised fees charges then published?
No nasty surprises. They rely on customer satisfaction for future business. Most customers changed from another financier to them and they know that can happen again if they don’t keep customers happy.
Ahh not really Paul. Signed up with them about a year ago 2 weeks after they put the rates up .20% while still advertising the lower rate. Now 2 weeks since rba dropped the cash rate no word of any corresponding rate cut from them. They're your best mates when you're new business but afterwards they don't want to know you. Gary the broker is a next level fair weather friend also. Tried to discuss the broken promises but never returns emails or calls. You'll have a better chance getting an audience with the Queen. Avoid!
We are already extended twice our coolingoff period and still waiting on final aproval right now.
The deadline is up on Thursday 18 of April 2019 5pm Sydney time.
Beside that reduce homeloan is explaining it they would be under the pump with application.
I feel it ends up in a big mess for us losing our bond plus the valuation cost beeing charged.
Could some one from the higher management look into this please!
My Reduce Home Loans number is 47780
Otherwise contact me direct under the number in my file
All good they gave us final approval 3 hour just before the end of the end of our cooling off period. Thank you guys finally i can sleep again. Keep up the hard work in particular like our aproval before the easter holidays
Do your loan packages work the same for a construction loan?
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