unhappy with home loan manager !
Not happy at all with the customer service that we received from home loan manager (don't want to put his name here). He seemed to be more conscious about his consulting time than finding out best possible options for us. He was handling too many clients that he seemed to forgot us. Anyway, after emailing him couple of times, he finally gave us a borrowing loan amount and asked to upload documents. We uploaded all the required documents in the client portal but after waiting for 3/4 weeks he then emailed us that the borrowing calculator has be...en updated recently and our borrowing capacity has become much less. Anyway, we agreed to proceed with less loan amount and asked to submit our application to loan assessor. The loan assessor had few questions which I already answered to my home loan manager. Since then I have not heard anything from him. It's been for than 4 weeks now. All in all, 2 and half months gone without getting any result reduced home loan. Later I have gone with another lender and got approval for much higher loan amount within 2 weeks.
My fiance and I sought pre-approval through Reduce Home Loans which seemed relatively easy (although we did have to chase for a couple weeks...) then once our offer had been accepted on our first home it went down hill from there. We had a 30 day settlement timeline and notified RHL the same day with no indication of any issues. Two weeks in, we followed up (and this took three calls and two emails) to find out where we were at in the process and how much longer approval would take to be told we should consider looking for a different provider....Two weeks before our settlement date! They had also miscalculated our funds and forgot to factor in our deposit which would have set us back a couple days. Needless to say, we dropped RHL quicksmart and went with another provider who were absolute godsends and had us further along in the approval process within 5 hours - we were laughing at the difference in service, it was unbelievable. I wouldn't recommend RHL if you're a first-home buyer!
100% incompetent! 100% disorganised
My partner and I went with RHL because of all the advertising of low rates and recommendations by canstar... what a nightmarish mistake! There was a lack of communication right from the start and they constantly try to make excuses for their slow pace. They raised our loan amount on three separate occasions so now we are borrowing more than we actually need. They tried to delay settlement over a month after the last date that settlement could actually occur. Had to educate them on the illegal nature of changing a contract of sale after it's bee...n signed. We have to apply for a refund of stamp duty because they refused to lodge the application on our behalf. Towards the end of the process we discovered they are actually a broker and NOT a lender like they claim. Even though we're now in our own home we can't exactly relax because RHL have gone quiet on us. Told us client care would be in contact to provide all the extra information like the ACTUAL ACCOUNT SETUP. But nothing, just radio silence. How are we suppose to make extra repayments if we don't have the means to do so? They should be paying us for using their pathetic service! Completely incompetent and disorganised. We have never been this dissatisfied with an experience before. Do NOT use RHL if you are a first home buyer! Edit: we received a congratulations letter... and some basil seeds... basil!
Not a home loan provider, just a broker skimming fees. AVOID.
Reduce pretend to be a mortgage provider but they are just a broker. They provide no transparency on fees or on who the loan is funded with. We were told we had to structure our loan as 2 standard variable loans with no explanation. I now suspect this was to increase their fees. They used Mortgage Ezy for our loan who used Origin Loans who are owned by ANZ. This made it hard to know who to talk to. Our interest rate went up literally within one WEEK of signing and a second time less than 2 months later. Our rate went from excellent to mediocre very fast. We are now trying to sever all ties with these guys and it is taking weeks due to this crazy labyrinthine arrangement. AVOID LIKE THE PLAGUE.
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.
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 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
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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