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...
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.
Great rate with full offset and good service.
Customer service was good, a little complicated and disorganised at times.
No unexpected setup costs, great rate. Exit fees are a little high, though, which is only a problem if you’re leaving and give them the rate (and 10% offset) that’s unlikely.
The loan application and approval process could have been smoother, but worth working through for the rate, though!
Decent service given the low rate
Reduce's rate was far better than we could find anywhere else. Our representative David worked very hard to get it all done, and it did get done in the end.
It wasn't always a straightforward process though. We had quite a few delays, including multiple occasions when we were asked for documents that we'd already sent before. We also had to pay penalty interest when their solicitors held up settlement because they had a policy that they needed three business days to schedule settlement.
But overall, I would recommend them and I'm sure they'll...save us thousands over the life of the loan. Just be aware that things might take a bit longer than with a regular bank, and you won't be able to see anyone in person. You can still talk over the phone though, and David kept in regular contact throughout the process. We also just settled today, so we can't rate the ongoing service nor can we comment on others' reviews that their interest rates went up shortly after joining.
Loving everything about the switch to Reduce Home Loans
Couldn’t be happier after moving our home loan to Reduce Home Loans. Have saved a fortune compared to what we were paying before. Customer service was fantastic, it was like having a personal loans manager at call every step of the way.
Reduce home loan. Really helpful, professional and great rate. Extremely happy
Really helpful, professional and great rate. Extremely happy!
I am planning on another loan with them and have also referred them to a few friends. I dealt with David and he was honest, available to help in an instant, and really knowledgeable.
Zero haggling required
Best rate in australia, zero ongoing weekly fees.
Application process was straight forward.
This loan is the best of the best for owner-occupiers, no frills, same payment every week.
Feels good to know you are getting the best rate in australia whenever current affair shows the Top5 list, reduce is always there.
cheating their customers
I have refinance my home loan through reduced home loans at a competitive rate. within 6 moths they have increased my rates twice and now they are now more expensive than all 4 big banks. This means that I have to expend more time and money to refinance my mortgage again :(
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.
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