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Reduce Home Loans Rate Cutter Variable

Advertiser disclosure
Rate
1.77% p.a.
Comparison Rate
1.83% p.a.
Service fee
$0.00
Upfront fee
$440

Mozo editorial review Reduce Home Loans Rate Cutter Variable

Last updated: 10 November 2020.

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What's hot
  • Super low 1.77% variable (1.83% comparison rate*)
  • Free extra repayments and redraw available
  • 0.10% loyalty discount after 5 years
What's not
  • Maximum LVR of 60%
  • $1,170 in upfront fees
Mozo snapshot

Reduce Home Loans have sharpened their rates to new levels with the Rate Cutter Variable home loan. It rewards borrowers who have lower loan-to-value ratios (LVRs) with a super low variable rate of just 1.77% variable (1.83% comparison rate*).

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Key features

If snagging one of the lowest variable rates currently on the market is the aim of your game, then the Rate Cutter Variable loan from online lender Reduce Home Loans is a home loan you’ll want to take a closer look at. 

While the loan offers a variable rate of just 1.77% (1.83% comparison rate*), the Rate Cutter Variable loan isn’t available to everyone. Borrowers must be owner occupiers making principal and interest repayments on loans between $50,000 and $1,000,000, and the highest LVR allowed is 60%. 

While the interest rate is the real standout feature, borrowers will also be able to make extra repayments towards their loan balance (for free) and use the online redraw facility should they wish to tap into any of those additional repayments. There’s no offset account available though. 

How about other costs? The good news is that borrowers won’t have to worry about paying a monthly or yearly service fee, though there are a few hefty one-off upfront fees to consider including a $440 application fee.

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Who is it good for

Given that the Rate Cutter Variable loan requires borrowers to have an LVR of 60% at the very most, this will likely be a loan best suited for refinancers rather than first home buyers (unless they have a large deposit). But with such a low variable rate, this could certainly be a loan worth considering.

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Any catches

Aside from the LVR requirement, borrowers may also want to weigh up the benefits of a super low rate against the total cost of the upfront fees.

Details

Rates and fees information correct as at 25 January 2021. 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
  • 1.77% p.a.

  • n/a

  • n/a

  • n/a

  • 1.83% p.a.

  • n/a

  • n/a

  • n/a

  • n/a

  • n/a

  • n/a

  • n/a

  • n/a

Fees
  • $440.00

  • n/a

  • n/a

  • $0.00

  • n/a

  • $0.00

  • $0.00

Other financial bits
  • $50,000

  • $1,000,000

  • none

  • 60.00%

Features
  • Owner Occupier

  • Principal & Interest

  • Weekly, Fortnightly, Monthly

  • yes - free

  • no

  • yes - free

  • $0.00

  • yes

  • no

  • Legal and valuation fees charged at cost.

  • none

  • 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
8.0/10
Price
9.3/10
Features
7.3/10
Customer service
7.7/10
Convenience
8.5/10
Trust
6.9/10
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n/a

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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.