Hidden fees. Don't fall for the low rate trap!
Reduce Home Loans use a third party for providing the loan funds (in our case it was Adelaide Bank) as well as a third party for the mortgage administration (Mortgage Ezy). Because of this, you are lumped with a double set of fees when setting up your loan, and when you discharge/finalise your loan, another set of doubled fees. You are never told this when signing up and it will end up costing you thousands extra in fees. We also found the process of setting up the loan to be complicated for no reason, because you are made to fill in double the...amount of paperwork, one set for Reduce home loans and then another for Adelaide Bank. You never know who you need to talk to, you may ring Adelaide Bank but they then say that you need to contact Mortgage Ezy for any queries in relation to your loan. It doesn't make sense and it a flawed system. They may seem like they have a low rate, but don't get trapped by this and make sure you understand ALL the fees you will be paying to the multiple parties that will be involved in your home loan.
Worst experience ever.. Do not go with them!
From the get go it was slow and very laid back process from this organisation. No one cares about your finances, deadlines, or any other commitments that you made by purchasing a property. Paid twice
For the valuation of 2 properties and I was asked to pay again.
No follow ups! No customer service and no intervention of management to expedite the process.
No advise on what rates you’re getting, what offers you’re getting and you can’t even see anything online or any application process updates.
Please please stay away!!! Unless you have 2 months to 3 months to wait for the loan to get approved.
no response, no update, no communication, no approval, missed the property I love
I have apply for home loan from reduce home loan, but after my finance date,no approval,no reject,no communication, cannot find the lender to get update.I missed the property I want to buy.
I sensed something was not quite right when they charged my card before authorisation was provided. Luckily I was running two applications in parallel because it turned out what the loan officer was saying and what they could do were two different things - don’t waste your time or money. Scammed me of nearly $500.
AVOID at all costs - Pre-Approval doesn't mean anything either - Constant stress and lost dream home
Would strongly encourage anyone to look elsewhere. Despite having pre approval months prior. When contract was signed for a house and subject to finance, reduce home loans kept requesting documents to be sent in which had already provided not only since pre-approval but again after contract was signed. I responded to all requests straight away. It appeared they were very disorganised organisation. They then left it up to the FINAL DAY of finance date to deny the application! This will likely result in the seller moving and the whole contract F...ALLING APART. I do not mind the fact that finance was denied, as I could have placed this elsewhere, but their service was diabolical and leaves me in a terrible position. Had they told me at any time in the last 2 months that there would be an issue, since having the same documentation they relied upon, then I would not be in this predicament. It appears internally the actually sign off is by some "credit manager" whom you will never talk too, and they leave this to the last day to obtain their approval internally. Don't bother with pre-approval as it is not worth the piece of paper it is written on and you will be sweating on their decision until actually finance date. Avoid at all costs and don't be fooled with their rates, comes at a price.
Friendly broker, poor process
This review written April 2020 then subject to mediation, published now after going with another bank. Money Mag should try to take out home loans with recommended lenders before awarding them gongs.
"5 months into application process to refinance and are no closer.
Have re-submitted required documents 3 times.
Have been requested to re-value house a second time at my cost.
Hard to believe really.
Broker has been friendly but clearly over-worked".
As an update March 2021- Mediation did not speed up process. Cancelled refinance with Reduce and reconsidered options.
Have just had conditional approval with AMP in 4 weeks as of March 2021.
You may or may not hear from them.
Theres virtually no communication either by phone or email.
A frustrating mob to deal with.
You may or may not get anywhere with these people.
In the end, you may have to just quit it.
Where are they? Still in business??
Selected Reduce as their rates looked competitive. However where have they gone? Commenced a home loan refinance which has been the longest process i have experienced, paid for the valuation myself and received approvals. Last heard they were working with their lender. Now, nothing?! Their office phone goes to voicemail, they arnt answering mobile phone and extensions are going to voicemail. Be wary, not sure it they are still in business.
Don’t loan to Rural Areas !! ACCC need to know about this ....
Spoke with lovely chap at Reduce only to learn if you are in a certain postcode ie: rural you won’t meet the lenders criteria so cannot apply for home loan.
Worst experience ever stay clear of these scammers
All up this process took over 2 months every time i tried to talk to my home loan manager it took over a week to for him to return my calls this should have been enough of a red flag but in my stupidity i pushed on i was told no offset acc which i could live with i was told you can b pay from your loan acc set up schedule transfers to other accounts i was told it would have same functionality as any other online banking services not true at all now im stuck with this stupid home loan that has none of the functionality i was promised thanks to t...he lies and incompetence of [Name Removed] my so called loan manager when i discovered what sort of account they had set up for me i did make a complaint about the lies had been fed i was told this would be investigated and the only way to rectify it was they would set up an off set acc free of charge at the same interest rate that was ten days ago and surprise surprise i have herd nothing no calls no emails and no off set acc the person i spoke to did seem like he had dealt with this issue many times before and new the only way to rectify was by adding an off set so probably a standard practice of their home loan managers to lie to customers and to be completely honest as a matter of full disclosure i am only writing this review at the request of my loan manager for a chance to win a $100 gift card in their monthly draw
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.
it took over 3 months for to finalise my loan. They lost the paperwork twice and I had to supply the same information to different people in the process, multiple times. The fees are far too high and when you ask for a breakdown you dont get a reply or the information. Was meant to receive an email or call to setup my loan with 24-48 hours. After 6 days I have nothing and no-one will reply. Processes are flawed and inconsistent, customer service is terrible and they cant organise or preform a simple task. If it was possible to give you 0 stars I honestly wouldn't hesitate in doing it.
Ridiculously time consuming process leading no where
After nearly 5 month process of applying for home loan refinancing with this loan broker, (yes they are online loan broker) I gave up. I had to continuously sending updated payslips, and bank statements every 3 weeks over these 5 months, countless number of email exchanges and files to send. They are very quick at the begining to book a property valuer and charge you for it . By doing this they lock you into a rediculous long process. I gave up at the end and went with another face to face loan broker and my re finance got approved within 5 weeks.
Good rates but very inflexible and terrible service. Would not recommend for new customers.
Currently with reduce on an IO investment loan. (reduce/mortgage ezy/origin money and who knows who else is involved in this terrible operation)
Requested an equity cash-out back in March which would have pushed our LVR from 65% to 74% and still no confirmation on whether it is happening after repeatedly having to get documents certified and witnessed only for them to expire so had to go through the same process multiple times without progressing any further. Dealt with a "customer support" team based overseas and Gary Stimpson who promises th...
Most reviews here are from people who have ""just"" signed up.
Reduce Home Loans put 'all' their effort to suck you in, and none after that, so yes the sign up experience and rate will be good at the start. Later is a different story and you realise you've been taken for a sucker.
Then slowly and gradually they erode any fair privilege you are due. Again, taking from you and giving all of it to 'new' customers to entice them to sign up. Check out the 'new customer' rate - almost 50 basis points lower than existing customers on variable rates. ...
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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