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Reduce Home Loans Low Rider

The details shown below are for an owner occupier taking out a principal & interest loan between $50,000 and $750,000 with an LVR below 80%

The details shown below are for an owner occupier taking out a interest only loan between $50,000 and $750,000 with an LVR below 80%

Choose the version of this loan that suits you best

  • Owner Occupier (Principal & Interest)

    LVR < 80%

    Loan: $50,000 $750,000

  • Owner Occupier (Interest Only)

    LVR < 80%

    Loan: $50,000 $750,000

Rate
2.44% p.a.variable for 60 months and then 2.34% p.a.
Comparison Rate*
2.47% p.a.
Service fee
$0.00
Upfront fee
$1,170
Rate
2.94% p.a.variable for 60 months and then 2.84% p.a.
Comparison Rate*
2.95% p.a.
Service fee
$0.00
Upfront fee
$1,170

Mozo editorial review Reduce Home Loans Low Rider

Last updated: 2 April 2020.

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What's hot
  • Low 2.44% p.a. variable interest rate for first 5 years (2.47% p.a. comparison rate*)
  • Loyalty bonus after 5 years
  • No ongoing account fees
  • Double 2020 Mozo Experts Choice Award winner
What's not
  • $440 application fee
Mozo snapshot

If you’re about to buy a new home, you’re in luck! With super low variable rates starting at 2.44% p.a. (2.47% p.a. comparison rate*), the Reduce Home Loans Low Rider Home Loan officially takes the cake for the lowest rate in our Mozo database (at time of writing)! Better yet, it took out two 2020 Mozo Experts Choice Awards in the Best Low Cost Home Loan and Best Offset Home Loan categories.

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Key features

Officially one the lowest rates in our Mozo database (at time of writing), the Reduce Home Loans Low Rider Home Loan offers super competitive variable rates from 2.44% p.a. (2.47% p.a. comparison rate*) for owner-occupiers on loans between $50,000 and $750,000, with a 80% maximum LVR. Plus, after 5 years, you'll score a loyalty bonus taking the rate down to 2.34% (2.47% comparison rate*).

On top of having some of the lowest rates around, the Reduce Home Loans Low Rider Home Loan goes the extra mile with tonnes of fab features, like, weekly, fortnightly and monthly repayment options, fee-free extra repayments and a super handy redraw facility for you to dip into should you ever need some extra cash.

But the fun doesn’t stop there! The Reduce Home Loans Low Rider Home Loan even comes with an optional split account so you can split between variable and fixed rates, and an optional offset account.

One thing you'll need to keep in mind with the Reduce Home Loans Low Rider Home Loan are the fees. While there is no service or discharge fee, you will pay a $440 application fee, a $330 legal fee, a $250 valuation fee and a $150 settlement fee. 

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Who is it good for

Jam-packed with incredible features, the Reduce Home Loans Low Rider Home Loan is a great home loan option for Aussies looking to buy a new house, particularly those with enough cash saved up to cover the 80% deposit.

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Any catches

If you decide to go with the Reduce Home Loans Low Rider Home Loan, just make sure you’ve got a 80% deposit saved up and have enough money set aside enough to cover the range of fees. 

Details

Rates and fees information correct as at 12 July 2020. Mozo has robust processes to ensure our site is updated to reflect the latest information from providers. There may be the odd occasion where updates are delayed, so please confirm information before purchasing.
Rates
  • 2.34% p.a.

  • 2.44% p.a.

  • 60 Months

  • Variable

  • 2.47% p.a.

  • n/a

  • n/a

  • n/a

  • n/a

  • n/a

  • n/a

  • n/a

  • n/a

Fees
  • $440.00

  • $330.00

  • $250.00

  • $150.00

  • n/a

  • $0.00

  • $0.00

Other financial bits
  • $50,000

  • $750,000

  • none

  • 80.00%

Features
  • Owner Occupier

  • Principal & Interest

  • Weekly, Fortnightly, Monthly

  • yes - free

  • no

  • yes

  • $0.00

  • yes

  • yes - with 0.05% interest rate loading

  • none

  • Waive $697 of fees with a 0.10% interest rate loading

  • none

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

Details

Rates and fees information correct as at 12 July 2020. Mozo has robust processes to ensure our site is updated to reflect the latest information from providers. There may be the odd occasion where updates are delayed, so please confirm information before purchasing.
Rates
  • 2.84% p.a.

  • 2.94% p.a.

  • 60 Months

  • Variable

  • 2.95% p.a.

  • n/a

  • n/a

  • n/a

  • n/a

  • n/a

  • n/a

  • n/a

  • n/a

Fees
  • $440.00

  • $330.00

  • $250.00

  • $150.00

  • n/a

  • $0.00

  • $0.00

Other financial bits
  • $50,000

  • $750,000

  • none

  • 80.00%

Features
  • Owner Occupier

  • Interest Only

  • Weekly, Fortnightly, Monthly

  • yes - free

  • no

  • yes

  • $0.00

  • yes

  • yes - with 0.05% interest rate loading

  • none

  • Waive $697 of fees with a 0.10% interest rate loading

  • none

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

Customer Reviews

How are Reduce Home Loans home loans rated by the Mozo community?

Overall customer rating
8.0/10
Price
9.3/10
Features
7.3/10
Customer service
7.7/10
Convenience
8.5/10
Trust
6.9/10

Latest review of Reduce Home Loans Low Rider

  • Overall 0/10
    Applied for variable loan, got fixed. Do not trust

    Summary: applied for variable rate loan, got signed up to fixed rate loan without telling me. I applied to Reduce Home Loans for a variable loan to refinance my existing one. Their website indicates the loan is variable rate. I did not indicate verbally or in writing that I wanted a fixed rate loan. Neither the mortgage broker or any other person I communicated with gave any indication that the loan would be fixed. My assumption is if I applied for a loan advertised as variable rate (and only variable rate), I would be receiving a variable rate loan. Near to completion of the process, the prevailing interest rate had already dropped. Early March, I contacted and asked a nameless customer service person if the loan would commence at the new lower rate. I was assured over the phone that the lower rate would kick in on the 27th March. I checked shortly after that date and to my surprise the lower rate had not kicked in and on closer investigation of the loan account details at the Adelaide Bank website, I was shocked to find the interest rate marked as 'fixed'. I contacted the mortgage broker, who after some time got back to me that I had 'signed off' on a fixed rate loan because the conditional loan approval document said it was fixed. I went over this document and it does not indicate fixed, all it says is the name of the Adelaide Bank loan product that was being used for the loan was called "Home Owners Dream 3 Yr Fixed Fee Free 80." I took no notice of that, why would I? The name of their loan product means nothing to me - maybe it means there are no fees for the first 3 years? So without a direct word verbally or on paper, they have slipped this 3 year fixed rate past me in the guise of loan product name, for a mortgage product clearly and only identified as a variable rate loan. I can only guess at the motivations of the individual broker and/or company he works for, in doing this. I am livid.

    Read full review

    Summary: applied for variable rate loan, got signed up to fixed rate loan without telling me. I applied to Reduce Home Loans for a variable loan to refinance my existing one. Their website indicates the loan is variable rate. I did not indicate verbally or in writing that I wanted a fixed rate loan. Neither the mortgage broker or any other person I communicated with gave any indication that the loan would be fixed. My assumption is if I applied for a loan advertised as variable rate (and only variable rate), I would be receiving a variable rate loan. Near to completion of the process, the prevailing interest rate had already dropped. Early March, I contacted and asked a nameless customer service person if the loan would commence at the new lower rate. I was assured over the phone that the lower rate would kick in on the 27th March. I checked shortly after that date and to my surprise the lower rate had not kicked in and on closer investigation of the loan account details at the Adelaide Bank website, I was shocked to find the interest rate marked as 'fixed'. I contacted the mortgage broker, who after some time got back to me that I had 'signed off' on a fixed rate loan because the conditional loan approval document said it was fixed. I went over this document and it does not indicate fixed, all it says is the name of the Adelaide Bank loan product that was being used for the loan was called "Home Owners Dream 3 Yr Fixed Fee Free 80." I took no notice of that, why would I? The name of their loan product means nothing to me - maybe it means there are no fees for the first 3 years? So without a direct word verbally or on paper, they have slipped this 3 year fixed rate past me in the guise of loan product name, for a mortgage product clearly and only identified as a variable rate loan. I can only guess at the motivations of the individual broker and/or company he works for, in doing this. I am livid.

    Price
    -1/10
    Features
    -1/10
    Customer service
    3/10
    Convenience
    -1/10
    Trust
    0/10
    Less
    Steven, Victoria reviewed 25 days ago

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*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.