21 questions from our users
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.
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.
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.
When will the 0.25% reduction in interest rate take effect (for variable interest rates)?
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
I am applying for loans from Reduce and start to worry how it will be. May I ask the Reduce Home Loans Official contact me? I just feel I was happy at the beginning but something became wrong when it was about time to put in my app. I do need talk to someone. Thanks
Reduce H.Reduce Home Loans
Hi there, We would be happy to speak with you and answer any of your concerns. please feel free to email us your details and I will have a manager give you a call as soon as possible. Kind Regards, Reduce Team
If I move over to Reduce and place my savings in an offset account, are the funds in the account covered by the government's deposit guarantee scheme?
Craig, this is a very good question. I wish Reduce Home Loans/Mortgage Ezy would answer it, as I have recently put a large amount of my hard-earned money into my offset account with them.
Reduce H.Reduce Home Loans
Hi Craig/Mtn Grown and Anthony. First of all we did not receive a notification from product review that we had received this question until Anthony's reply so I am sorry for the delay. Thank you Anthony for posting the link, as you will see our main Funding line Adelaide Bank is covered under the FCS. If you have any other questions please feel free to ask.
hi there - i started application process for refinancing with reduce in early may - sent over 60 documents in three months - still the funder needs more documents to finish the refinancing - can i exit now as the approval hasn't gone through or a credit check or valuation has happened - my broker (G s.....n) says i need to pay the fees of $425 / house as i was going to refinance 2 properties. dont really want to go to the ombudsman or write bad reviews on websites either. My patience is running out and i am mentally disturbed over the long dragging process. someone plzz help.
If it is the Gary that I am thinking of, you may wish to go to the Financial Ombudsman after all. I would also suggest that you view the responses in this section and see if his name appears on any other section.
Lol kumar you cant seriously expect a low rate from a small lender and expect to not pay a fee to refinance your property (two properties). If you didnt want to pay the up front fee you should of just go to one of the big four banks. You would of been eligble to avoid up front fees but would reveive a higher interest rate which would in the long term been a lot less financially beneficial for you. I don't work for this company but thought i might make the situation a little clearer for you because I can understand why the process is at a stand still if your refusing to pay the up front cost. As a law student i know your complaint to the obmussan would be thrown out instantly.
I've purchased a property which I've had for about 1 year. My question is, Am I able to refinance it through you guys so I'm not paying as much with commonwealth as there was 4.59 or something like that at the time?
Reduce H.Reduce Home Loans
Hi Justin, We can certainly look at refinancing for you. Please contact us on 1300 733 823.
Hi, do you help people with low credit ratings?
Reduce H.Reduce Home Loans
Hi Victor, The best thing to do is give us a call and speak to one of our personal finance managers who will be able to help.
Thanks. Reduce team.
My partner and I are looking to buy our first home shortly. Do you assist with the first home owners grant or is this something we need organise ourselves?
Reduce H.Reduce Home Loans
Hi Hayley, Yes we can certainly guide you and your partner through the whole process. Feel free to give us a call 1300 733 823
Hi, I was wondering if anyone who has had their home loan with Reduce Home Loans for a year or so can give me some feedback on interest rates increases since they first signed up? Thanks in advance.
I am currently considering getting a home loan with Reduce Loans...I thought they were just a broker?? Surely a broker isn't responsible for the interest rate hikes
I've requested Reduce to email me the following this morning:
1. Total number of new customers from January 2012 for variable rates of (a) Owner Occupied Loans and (b) Investment Loans
2. Number of these new customers (mention in q # 1 above) who had their variable rates increased within 6 months of signing up.
3. Number of these customers (mentioned in q# 1 above) who then either closed off their loans or refinanced to other lenders.
Brian - once you sign up, you realise its Mortgage Eazy. Reduce gets the business and then you generally will be dealing with MEZY.
Hope this helps.
I just spoke to Josh from Reduce Home Loans and he confirmed to me as broker they have no control over the interest rates. I mentioned your comments about Mortgage Ezy and he informed me that they are the Mortgage Manager who manage the home loan on behalf of the wholesale funder. When I asked about what I have read on here about interest rates for new and existing customers he told me,
The mortgage manager can only negotiate interest rates for new clients. However due to increase in the cost of money from the US (which he told me that's where Australia's money comes from, 'the bond markets' not the Australian fed or something like that) previously negotiated rates may increase depending on market conditions, I pressed him for an explanation on why rates are cheaper for new clients and he explained the interest rates are from a new securitisation pool and funding line... He pointed me to a few different articles about the rising cost of money and from what I read almost all banks have risen interest rates over the passed six months. Anyways I'm still going to give them a go, I'll let you know how I go.
Is it normal to lure customers with low interest, charge them high fees (citing low interest), and once they are locked in - increase the rates on their loans by 0.25%, despite RBA not changing the interest rates? This is what happened to me. If this is an indication, then I'm worried about how much would you increase your rates if RBA does hike it's rates. And why not put existing customers on rates you advertise on your website (3.44%), but hike it to some arbitary rate (3.69%)? Charging us for our loyalty?
Apparently it is....I have only been with them 2 months and just had my rate hiked 0.25%, despite from what I can see no other banks raising theirs by this amount. The RBA have even said that the cost of borrowing money for banks is dropping not rising, so their reasoning behind this hike is very shady. Likewise new customers still get 3.47% (well at least for a month or two they will before it is raised on them). I wouldn't hesitate to switch if this pattern continues.
This is so shady and unfair, especially the fact that even if they do have to increase the rates for existing customers, they do not increase it to the rates they advertise for new customers. Is it even legal? I've just been with Reduce for 4 months. Anyone else in the same boat? New customers - please take note that this can happen to you too.
Just got the letter saying that my interest rate's increasing by 0.25% to 3.69% from 3.44%, citing CHANGING MARKET CONDITIONS. I've only been with them for about 3-4 months. Came back to this website to check if new customers are also getting this new interest rate. I'd think new customers would be affected since this is due to CHANGING MARKET CONDITIONS. Lo and behold, new customers are NOT AFFECTED by the market condition changes, and they'll get 3.47%.What's going on?
I was wondering if anyone who has had their home loan with Reduce Home Loans longer than 3 years can give me some feedback on their experience with the company so far? Thanks in advance. Naz
I've had my home loan for 5 years with Reduce and I wouldn't hesitate to recommend you to them. The communication throughout the process was really great and I liked that I was assigned my own Personal Finance Manager who take care of everything. I guess I would say the Internet banking facility is a bit clunky and outdated, definitely not as good as ANZ's who I was with prior to refinancing with Reduce. Also I wanted to redraw quite a large sum of money I found the paperwork quite a hassle. Other than this I've had a great experience with them over the years and I am definitely saving money on my repayments after switching to Reduce. Hope this helps!
I would like someone to answer why Reduce Home Loans can offer such competitive standard variable rates, but fixed rates are not nearly as competitive. Why is this?
You should ask them directly.
Coming from USA, I was very surprised to learn that 90% or above of mortgages here are variable rates. I had in the US a 30 year fixed rate. For such a long period, people would prefer fixed rate. My impression is that just now companies are offering such deals, and they are very conservative about carrying the risk of this type of operation.
See my question above and you'll get the answer. The variable rates are changed as soon as they can and they will not move you to the advertised rate but to a higher interest based on their whims and fancies once they've locked you in. They can't do that with Fixed Rates, hence they are not as competitive.
Reduce H.Reduce Home Loans
We have been trying to negotiate with different funding lines more competitive fixed rates. We currently have 1,2 and 3 year fixed rates at 3.87% http://www.reduceloans.com.au/home-owners-dream-3-year-fixed/ which is a pretty sharp rate. @Varghese Interest rates from the current funder haven't gone up in over two years.
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