Slow and too many parties to deal with
They are just the originator of the loan, the funder is a separate party with their own lawyers which apply their own fees that aren't disclosed.
Took 9 months and 3 valuers to get a refi approved and then just before settlement they decided they wanted all my docs again because it had been so long since I submitted them. I gave at this stage and refinanced with someone else (it was completed in 6 weeks...).
Good rates but painful process!! Not recommended
Commercial part was excellent.However,the pre-settlement team and 'customer care' team are terrible. We missed our settlement date due to their lack of processes. Not worth the stress. After 1 month still waiting for the etfpos card (not even a proper debit card).
Yep its a very low rate. And the service and expertise is equally low rate.
My loan application took weeks. Once pre-approval was provided, I thought things would be OK, unfortunately pre-approval was just the beginning of a very tedious and stressful experience. On more than 3 occasions my "pre-approved" loan was questioned and re-examined by the finance provider with me having to provide multiple supporting documents and explanations. This would have been fine if that was what I was expecting, but unfortunately, it seems that my broker did not understand what was required by the finance provider. Furthermore, it was ...always me that was chasing up the broker and constantly wondering where my approval was up to. Ultimately, my loan amount had to be reduced despite the "pre-approval", which would be OK, but when it is at the last minute and your settlement date is fast approaching then it is very unsettling. I was a day away from abandoning the entire process. My expectations were managed very poorly. If you are capable of weathering this sort of experience though, than the rate is very good.
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!
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...
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.
Reduce by name only!
Took out an owner occupied loan, which took far too long to get finalised, then we were advised of loan being approved, which was just before settlement date. Turns out they processed it as an investor loan, charged a much higher rate and due to lateness of loan, we went through with, in order to settle property. To add further insult, they advise by letter less than a week prior to an announced rate change. You guessed it, a rate increase. To summarise, we took a loan at 3.55%, which ended up actually being 3.77%, now it has increased to 4.02%.... We are definitely going to refinance with a much more honest company with some integrity, oh, its get worst, the overseas call centre staff advise there is a $950 discharge fee. BEWARE , Reduce Home Loans, is NOT, what they say they are, I think Reduce, should rename themselves, "Changing Goal Post Home Loans"! Not happy and well out of pocket, I will be reporting them to the Ombudsman.
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.
refinancing process . ouch.....
refinance process one of the most disorganised and complicated events i have had the displeasure to be part of. Still not complete 2 months later. Hope to close out soon to move on.
Many things that require improvement including rates for existing clients
Reduce Home Loans was easy to deal with setting up the home loan. The application was slightly confusing and lengthy but was assisted with the loan specialist at the time. The website to manage the home loan is not user friendly and is down many times when I try to access my online account. They dont have an app for that either. This needs to be fixed.
The rates are great BUT COMES WITH A CATCH... they have increased my rates drastically after about 18 months with them and reduce Home Loans still advertise the lower market rates on their web...site for the same product. Not happy as this demonstrates how they treat their existing clients poorly. My LVR is way below 50%. Be warned they most likely will be signing you up to these honey moon rates which they claimed at the start not to be the case. This has made me lose trust with this organisation and do not intend to continue doing business with as a result.
Lack of response. No follow up
After doing some online research I decided to approach Reduce Home Loans. After completing the online questioner I was contacted via the phone and was assigned a mortgage officer who emailed me the information about the interest rates, product specs and etc. Since then I have called the mortgage broker twice and emailed him as well asking for a call back as I had a few more questions. Still haven't been contacted by anyone (Maybe due to Xmas period and they are short staffed)?
I would hate to want to deal with them when there is a real problem...
Contacted Reduce Home Loans over 3 months ago in relation to getting our home loan for a new build. We own the land. They kept misplacing our paperwork, then that went out of date and we had to supply them with it again. Then they weren't happy about how the builders wanted to draw down the loan. Was told on the 20/12/2018 that I would hear back from them with full approval and after contacting them via email and phone (both the broker and the company) still do not have an answer. Very frustrating. If I don't here from them by the end of the week I will be telling the where to put the loan and go to a different provider. I dont know how they won money magazines award for one of the best lenders 3yrs in a row!!!!!!
Rate increase above those for new applications!!
I've been with Reduce Home Loans over 18 months and found the application process challenging. The support was generally good but as others have mentioned further information requests come in dribs and drabs prolonging the whole process. Overall it took about 3 months from starting the process to settlement.
However, in June this year they hiked my interest rate from 3.44% to 3.59% whilst still advertising my exact home loan for new applications at 3.49%. This is totally unacceptable - beware!
At the end of the day they are just another mortgage broker
It is a shame that we Australians suffer from an incurable trait called complacency and our business’s prey and profit on this weakness. Some may contest that it’s not complacency it’s just plain laziness, well I just can’t be bothered arguing with you about that, stupidity then, well Uncle Horas did try and rob that bank on a Sunday and he forgot to book the get-away taxi. Three more years and he'll be eligible for parole.
Back to the topic of interest rates, houses and the great Australian dream. Ah, to own your own little piece of Australia...
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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