A hassle but worth it in the end.
They required A LOT more information from me than my previous bank and it was a couple of months of emails back and forth almost daily but it was worth it for the money I'm now saving. The same loan is now costing me $150 a fortnight less so I definitely feel it will be worth my trouble over the life of the loan :)
Also they sent me a kit to grow your own chives as a welcome present so that was a cute touch.
Reduce Home Loans - Good experience, easy to deal with and best interest rate available.
Reduce Home Loans - Good experience, easy to deal with and best interest rate available. Good service from Bryce Stimpson.
Offered different interest rate and loan type options, and discussed with us which would suit best, the forms were not too hard to fill out, instructions were clear and the final setup and settlement went well.
Gave up after 12 weeks. Settlement elsewhere in under 3 weeks.
Quick version - No brainer loan, after dragging on for 12 weeks, despite providing all documents in "fast track" online original process we gave up around 13 week mark & went back to a broker we'd used in Tassie, even though we're in Perth, and they sorted it in 2 and a half weeks. Only a $48 fee for a desktop valuation.
Shout out to Yellow Brick Rd Andrew & Kate
Slow version -We were looking at borrowing 200k which was a third of the property value. We have other property which is valued at about the same as loan (and is owned in full)..s...o no real danger of them being left high and dry. We found the process slow & frustrating. We'd been waiting 3 months even after we submitted all requested paperwork quickly. We were asked to provide quite a number of things which seem unnecessary...bank statements & pay slips 2 or 3 times because they were now out of date as the process had taken so long, redo of verification of Id's because the person who signed shared the same surname as parents (so that is a maiden name and not our surnames) even though we said they are not a blood relative (which btw their forms dont stipulate), letters stating house sale process & settlement docs (despite them having a copy of the title to the property), etc.even signed statements regarding the sale process. We had gone for weeks without hearing a thing from them & it seemed that if you contacted them, they just asked you to jump through more hoops, which weren't there until you hurry them on. We provided all of the initial requested paperwork in full, leaving nothing out but then they keep asking for more and more, which again, we quickly provided. Our loan is a no brainer with us having a perfect credit history. The only flag had been that we had been loaned 140k from parents to secure the property when we moved interstate. We didn't need to do this but it seemed easier & quicker at the time rather than changing state, job, house etc and organising loan on top. Had we known the trouble it would cause here, we'd have gone elsewhere initially. The bank of mum and dad is pretty common these days & shouldn't have us flagged as criminals or something. Customer service is polite when they call but just don't progress things.
Almost lost deposit because their pre-approval means nothing
Takes weeks to respond, doesn't answer the phone to contact the loan manager. Gave preapproval after seeing all our income and paperwork, then rejected the loan without any circumstances changing.
Excellent interest rate
I am really happy about the interest rate . There is no hidden fees . If they do the process bit speed , I would rate definitely 5 star . I already recommended to my friends
Rate is good but customer care is bad
The interest rate is very competitive. Their customer's response is very fast. However, the process took longer than what I expected, and we had to delay our settlement 1 days. Before the settlement, the rate reduced to 2.99%. We were told that the new rate will be passed to us by 15th of Aug but up to today date (08 Sept) we still haven't got the new rate. We contacted the customer care numerous of times and the response we got is they are working on it and the lender haven't approve and they have escalated the queries. It has been almost 2 months of following up and nothing has been resolved yet. Overall, the rate is good but if you have any issue and need support, it's not going to be straight forward.
Thanks Reduce Loans
We had a very helpful staff member (Reese) during the loan application process. He answered all our questions and was easy to get in touch with. He helped us our with application and doubled checked all our documents were correct before we submitted the final application. The pre-settlement team communicated with our settlement agent regarding any issues and the post-settlement team (Cat) were great at explaining each step to commence mortgage payments. Thanks.
Excellent service from the Reduce Home Loans team
Nick was great to deal with, took care of everything for me, Barely had to lift a finger.
Great rates are also.
Very satisfied customer, thank you Nick and Marvin for all your help!
Great rates and great customer service
A great company to set up a mortgage with. The process went very smoothly and our sales rep was always available on the phone (Rhyse Taylor in Brisbane) to answer any questions we had)
We were worried about going with a 'non big 4 lender' bit so far so good and the interest rate is much better than any of the established banks were offering
Reduce Home Loans
The customer service was thorough although the process could have been carried out a little more speedily. When it came to the crunch, Reduce Home Loans delivered. Good interest rate but slow to pass on the cut from the Reserve Bank.
Reduce had the best rate we could find after a lot of research, responses were a little slow at times but got there in the end and happy we went with reduce home loans.
Great rates..That Don't Last! Beware.
We all know that if you take on a variable rate the lender can change the rates whenever they like, so there is an element of trust taken on by the borrower.
I refinanced from a very good rate at Ubank to a great rate (at the time) at Reduce/Adelaide Bank about 18 months ago. At the time it was 0.18 lower than Ubank a reputable discount lender. As the last poster stated Reduce then claw this initial discount rate back quite quickly (especially with the recent 0.35% Reduce drop when Ubank gave 0.5% drop).
Notice they never publish what exist...
Over all very happy with Reduce. Great rates and customer support!
Over all very happy with Reduce. Great service and relatively easy change over procedure. The internet banking interface could do with some modifications though. Also an app would be great too.
Best Interest Rate
Best rate in the market after RBA cut, have received first rate cut and pending for the second rate cut, call centre is helpful and provide quite response to the question.
My partner and I went through Reduce Home Loans for our first purchase. Being our first home, we had a lot of queries. Leon Clark was incredibly helpful and patient with us. Highly recommend him + his team!
Low interest rate but much lower standards of customer service
Extremely poor standards of customer-service. Baffling, I had to frustratingly chase even the brokers to respond to my calls/emails. Then, receive contradictory information. Low rates come at terrible customer service
Reduce helped us to get a great rate on a home loan, and settle in a very short time frame
Reduce helped us to get a great rate on a home loan, and settle in a very short time frame. Thanks for your help. The online loan management web app is good also.
Better than the big 5 banks
Just better service seen and better rates
I went to the banks out of interest and they were just a waste of my time. Even when they tried to match they couldn't
Will give them 5 stars as soon as they pass on the rate cut...
Awesome experience from the get go.no frills but exactly what you need from a lender. Was the best rate around when we signed up and still is now 6 months later as far as I can tell.
Low rate, more effort
Rate is lower than you will get mostly anywhere else. The process to get the loan, however, was not straightforward. Significant amount of complicated, hard copy paperwork, then a lot of subsequent to and fro with their solicitor (including physically driving to their office twice to submit paperwork) to get my loan documentation correct (there were errors), meaning that I had to get a settlement date extension.
Can’t really complain now that I have the loan, although the online portal is not as user-friendly as the big banks (e.g. you actually have to call them if you want to reset your password).
If your primary driver is a low interest rate and you don’t mind the hassle involved in the above, go for it.
Questions & Answers
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!
ProductReview.com.au has affiliate partnerships. These do not influence our content moderation policies in any way, though ProductReview.com.au may earn commissions for products/services purchased via affiliate links.