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Reduce Home Loans

Reduce Home Loans (page 2 of 2)

4.2 from 913 reviews · View Statistics

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They won't pass the full cut rate once you become a customer

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Reduce Home Loans lure you in with a competitive rate then they never pass on anywhere near the full rate cuts. I asked them about the rate cut following RBA’s announcement and they said that the full rate cuts only benefit new customers who haven't signed up yet. If you're already a customer, they don’t pass on a full rate cut irrespective of what the RBA do.
They told me that as an existing customer I would only receive a 0.1% rate decrease out of the Reserve Bank 0.25% rate cut.
Having said that, the loan manager I talked to was nice and helpful throughout the process.

1 comment
Reduce Home Loans
Reduce H.Reduce Home Loans

Terrible experience

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Kieran

KieranMelbourne

Easy to set up however rate cuts not passed in full and communication after settlement non-existent!

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Comparison rate

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Your comparison rate states 3.35% the same as the actual rate. Your small print states that some fees are not included in the comparison rate and it's based on 10k over 3 yrs. legally you MUST include all fees in the comparison rate if they can be calculated upfront ($440 as stated in your fees section) and you have used the wrong example in the small print (it must be $150,000 over 25 yrs) I wonder what the regulators will think.

1 comment
Reduce Home Loans
Reduce H.Reduce Home Loans

Yet to cut interest rates for existing customers

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Reduce Home Loans recent rate cuts currently only apply to new customers. Nothing has been advised for existing customers. You will be dealing with a number of different entities (including but not limited to, Origin Mortgage, Columbus Capital, Reduce Home Loans, Mortgage Ezy and independent solicitors) making any claim for unfair treatment difficult. Be wary that they can lock you in with a low sounding rate but not cut when the RBA cuts... They also charge you a $795 discharge fee, making an exit expensive. Not worth the punt imo until they have a proven track record.

1 comment
Reduce Home Loans
Reduce H.Reduce Home Loans

Hi Adam, I am quite confused by your comment as we do pass on the RBA Rate cuts. I would like to try and help you however 'Adam Greg' doesn't show up in our system. Can you please email info@reduceloans.com.au. Thanks.

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Questions & Answers

Aussiebloke34

Aussiebloke34asked

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?

No answers
Alex D

Alex Dasked

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?

Thanks.

2 answers
Edson S.
Edson S.

Hi Alex, I’m on 3 years fixed rate. I’m not sure how much are the exit fees but I don’t think it’s higher than my precious bank.

Aussiebloke34
Aussiebloke34

I was told exit fees were made illegal from 2011?

Simmo

Simmoasked

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.

2 answers
Debstar
Debstar

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.

ALS
ALS

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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