Great people, slow process
The team at Reduce have been good to talk to and did their best to pick the right loan for us. However the process has been extremely protracted, even allowing for COVID-19 impacts. We first signed our application on April 24, and as of today (15 weeks later) we have not yet achieved settlement on the loan.
We have had to ask for updates in order to understand where things were up to, with at times a month going by without any news on what was happening. Given the protracted duration, it has been necessary to re-furnish new copies of documents...that were previously supplied (for example a more recent payslip or statement) which has been a source of frustration. Ultimately this new mortgage product will be much better for us, so this process will be worth it, but there has been significant opportunities that were lost to us as we waited (and continue to wait) for the loan to settle.
Great Rate, ok service.
Great rate for refinancing. Found service a little more complicated than dealing with bank direct. Could be improved by having one consultant providing clear information and returning calls in a more timely manner. Service during settlement was great.
+ great rate - slow process - online portal
The interest rate is great, one of the best in the market.
The refinancing process took a very long time.
The online banking portal feels outdated and is not user friendly.
The rate is good, services ok.
good interest rate with offset, nil other application fee. Valuation fee is $250 but will refund to you later, but but $900 discharge fee just too high. Online application so you have to do all the documents yourself. Otherwise its good
Rate is good but customer care is bad
The interest rate is very competitive. Their customer's response is very fast. However, the process took longer than what I expected, and we had to delay our settlement 1 days. Before the settlement, the rate reduced to 2.99%. We were told that the new rate will be passed to us by 15th of Aug but up to today date (08 Sept) we still haven't got the new rate. We contacted the customer care numerous of times and the response we got is they are working on it and the lender haven't approve and they have escalated the queries. It has been almost 2 months of following up and nothing has been resolved yet. Overall, the rate is good but if you have any issue and need support, it's not going to be straight forward.
Great rates. Slow application process.
Great rates. It took a very long time to get there but the application is almost complete. Recommended if you want a very low rate and are prepared/able to wait through a long application process.
Great rates but be CAREFUL!!!! Very misleading!!!!!
Very misleading, false and unprofessional company!!!!! They advertise great rates with nil fees but deliver higher rates with fees galore.
Let me start by saying they do offer great rates if you are after a simple loan. As far as the positive points go, that's about it.
My circumstances may be different to most as I was trying to refinance three separate loans (ie 3 properties) to the one lender to simplify my finances. This was explained to Reduce from the first time I contacted them. I was told I would receive the great advertised rate...s they were offering with nil fees but I would have to pay for the 3 x $250 valuation fee for each of the 3 x properties upfront (which covered up to $330 per property) but if/when I proceeded with Reduce for the loans I would be reimbursed. So after Reduce was satisfied I could service the loans, they asked for my bank details to pay for the 3 x valuations. That's where they now had me and started taking the ... !!! They deducted the 3 x $250 for the valuations plus an additional fee which when I questioned was told that was because the val cost was higher than expected. So now I am about $1,000 into the process.
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.
Slack with some things
First off although they offer a great rate their service was anything but that. No one actually told me when settlement was, my old mortgage just disappeared from my account. I still haven't received a list of the disbursements. They sent the pin no for the account but no card for 3 weeks!! They don't do fortnightly repayments like they do on their calculators on their sites, which was very frustrating and misleading. They chased us for the loan but when it was done very slack and no attention to detail. Pitty, it's a great product run by not so great individuals.
Best Rates Available
Most competitive rates going, customer service was reasonably good. Attention to details could have been a tad better and dealing with many people rather then one focal point throughout the whole process would have made it much easier. Also the valuation fee in WA was much higher then quoted.
Rate is okay only
It doesn’t have a lot of difference compared the actual banks. ANZ is doing 3.75% fixed rate, Macquarie bank is doing 3.75 variable with a offset account.
Good rate; make sure you pin down the details and charges before signing
Had the best rate when we were looking for a loan (not the case at the time of writing); They don’t refund trailing commissions like the best mortgage brokers do now (search for mortgage broker fee refund to find these great people).
We asked for several offset accounts when discussing the mortgage, built didn’t get anything in writing - this then turned into an additional cost of just over $200 to set up after signing, so my advice is to have absolutely everything in writing with clear fees and inclusions before signing.
They have been quit...
Exceptional interest rates, customer experience can be improved.
I give them 5 stars for the interest rate. I give them 1.5 stars for customer experience during the application process.
It's one of the lowest (if not the lowest) rate one can find out there. Application process can be improved. They're not thorough. Forms are confusing. At times, they've missed things and I had to repeat what they've already been advised. Forms had to go back and forth a number of times and they don't ask for everything that they need upfront so every time they ask for something, it introduces delay in the process. Perso...nal Service as they claim is not really personal service, although there is one main person, I had to deal with few people. Over a week after submitting all the signed legal documents to the solicitor, there was again another issue. The security release document that their solicitor asked us to sign was an old version and therefore was rejected by the incumbent bank - yet another delay. I was also advised by the solicitor that my application was on hold. After checking with reduce home loans, the issue was that they have included a feature that I told them that I don't want and that they are fixing it. After days of waiting, I followed up where things are at and was advised that they will let me know once they know if settlement is booked. Several days of waiting, I resorted to checking my incumbent loan account on a daily basis with the hope that one day I will see a zero balance. And so it did, without notice from anyone - I don't know how the funds were disbursed, etc. They contacted me after settlement and that's when I asked how the funds were distributed only to learn of another problem which at the time of writing this review, I am still trying to sort out. The whole process took almost 3 months. I have another property, I used another bank and did not experience such a hassle - had it all done in under a month. I cannot rate yet the post settlement customer experience as this is fairly new. If you can tolerate the painful application process, I think it's worth considering these guys due to the low rate. I guess it depends on how much you're borrowing. Big amount means huge savings.
Low interest rate advertised to get your business
I refinanced to save money because of the low-interest rate advertised. In a few months, my loan rate was increased, while the website rate reduced. When I inquired why, a lot of excuses and reference to the fine print. I feel cheated and unappreciated as an existing customer. Will not consider in future.
Good loan but the online system has many rooms to improve
I don't have much to complaint about the loan itself. Low rate but high upfront fee as everyone knows.
However, I have a huge concern about the safety of their online system, let alone the user interface.
Many banks nowadays have already implemented 2FA (Two Factor Authentication) which provides an extra layer on top of password. (i.e. Sending you a SMS to confirm a transaction)
Reduce Home Loans is using Mortgage Ezy Online Account System which does not provide 2FA.
It means if someone steal your password, they can easily gain full access of your accounts.
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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