Great people, slow process
The team at Reduce have been good to talk to and did their best to pick the right loan for us. However the process has been extremely protracted, even allowing for COVID-19 impacts. We first signed our application on April 24, and as of today (15 weeks later) we have not yet achieved settlement on the loan.
We have had to ask for updates in order to understand where things were up to, with at times a month going by without any news on what was happening. Given the protracted duration, it has been necessary to re-furnish new copies of documents...that were previously supplied (for example a more recent payslip or statement) which has been a source of frustration. Ultimately this new mortgage product will be much better for us, so this process will be worth it, but there has been significant opportunities that were lost to us as we waited (and continue to wait) for the loan to settle.
+ great rate - slow process - online portal
The interest rate is great, one of the best in the market.
The refinancing process took a very long time.
The online banking portal feels outdated and is not user friendly.
Missing funds from final settlement and very slow service
Reduce do have very low rates, but I'd advise any new customers to be aware of the slow application time, and once settlement occurs, to check their transactions very carefully and persist if you think you're missing any funds. My home loan took 3 months to settle, from the beginning of the application process to the actual settlement date, and required a large number of documents to be sent continuously through that entire time period. Then, when the loan finally did settle, I was missing almost $600 from my final balance. Reduce continually d...enied that they had taken it, but wasting several hours on the phone to Reduce and to my old bank, over several weeks, Reduce finally discovered they'd "accidentally" charged me twice for my property valuation and also for a solicitor's fee that they were supposed to pay for. No apology or anything and I'm still waiting on these funds to be refunded...
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.
Not what it seems
I went with reduce because of it's low rate which was at the time, the lowest in the market. At the seventh month of having the loan they increased my interest rate separately to the RBA by 0.15%. Even though they were still selling their loans at the same rate I got initially. When I queried it I was fobbed off with the 'line' your loan was funded from a different line of credit and that now costs more but the new loans don't. They then reduced it by 0.05 as my loan was more expensive than UBank and I complained so it was now equitable with UB...ank. Move forward 6 months and Reduce Home Loans called me to say I'd be receiving a voucher if I did a review for them and when I told them I'd give them a 2, for the above reasons they said I'd only get a voucher if I gave them a review of 4 or 5 so I refused. Then over the last 2 months the cash rate has dropped by 0.5% and reduce has only managed to pass on 0.45% so what initially looks like a great rate pretty much ends up as the same rate as everybody else once you factor in the random increases they do. But still the Reduce advertised rate gets the full rate cut and now sits well below my home loan rate. I have been left disappointed by reduce home loans.
Buyer beware; Getting the loan was ok, afterwards, not so
I signed for a loan with a repayment of $605 per fortnight. When I got the paperwork back after settlement the repayment was $651. I was advised the Funder uses different Calculators to the ones on the Reduce Loans site. Completely misleading. If I could afford to get out, I would.
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.
Slack with some things
First off although they offer a great rate their service was anything but that. No one actually told me when settlement was, my old mortgage just disappeared from my account. I still haven't received a list of the disbursements. They sent the pin no for the account but no card for 3 weeks!! They don't do fortnightly repayments like they do on their calculators on their sites, which was very frustrating and misleading. They chased us for the loan but when it was done very slack and no attention to detail. Pitty, it's a great product run by not so great individuals.
Does not pass on rate cuts to existing customers
I was happy when I first signed up to Reduce Home Loans but soon realised that once the RBA starting cutting interest rates that existing customers are discriminated against as opposed to "new" customers. So far Reduce Home Loans have passed on pretty much all the RBA rate cuts to new customers but as an existing customer I have only received partial cuts each time. As of today (15/10/2019) its been 2 weeks since the RBA cut rates by another 0.25%. This was passed on to new customers within minutes however I have received no responses to my ema...ils asking when I can expect to hear what my reduction will be. Currently new customers can get a rate around 2.70%, I am currently on 3.09%. That says it all as to how they treat actual customers. I note that Athena and Homestar treat new and existing customers the same. I will have to contact them I think. Also, you dont deal with Reduce Home Loans after settlement, it is a third party service called Mortgage Ezy. Reduce Home Loans didnt explain this to me when I was going through the application process. The first I heard of them was when they contacted my employer out of the blue looking for financial details. You dont have direct access to the actual lender and needless to say its very difficult to get any sort of timely responses from Mortgage Ezy, don't even waste your time trying to call them. In short, be very careful before you sign up with Reduce Home Loans.
Best Rates Available
Most competitive rates going, customer service was reasonably good. Attention to details could have been a tad better and dealing with many people rather then one focal point throughout the whole process would have made it much easier. Also the valuation fee in WA was much higher then quoted.
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!
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