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Reduce Home Loans Rate Cutter Variable

Advertiser disclosure

The details shown below are for an owner occupier taking out a principal & interest loan between $50,000 and $1,000,000 with an LVR below 60%

The details shown below are for an owner occupier taking out a principal & interest loan between $50,000 and $1,000,000 with an LVR below 70%

The details shown below are for an owner occupier taking out a principal & interest loan between $1,000,001 and $2,000,000 with an LVR below 70%

Choose the version of this loan that suits you best

  • Owner Occupier (Principal & Interest)

    LVR < 60%

    Loan: $50,000 $1,000,000

  • Owner Occupier (Principal & Interest)

    LVR 60%-70%

    Loan: $50,000 $1,000,000

  • Owner Occupier (Principal & Interest)

    LVR 60%-70%

    Loan: $1,000,001 $2,000,000

Rate
1.79% p.a.
Comparison Rate
1.88% p.a.
Service fee
$0.00
Upfront fee
$1,020
Rate
1.88% p.a.
Comparison Rate
1.94% p.a.
Service fee
$0.00
Upfront fee
$1,020
Rate
2.18% p.a.
Comparison Rate
2.24% p.a.
Service fee
$0.00
Upfront fee
$1,020

Mozo editorial review Reduce Home Loans Rate Cutter Variable - last updated: 16 August 2021

binocular icon
What's hot
  • Super low 1.79% variable (1.88% comparison rate*)
  • Free extra repayments and redraw available
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 1.79% variable (1.88% 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 1.79% (1.88% 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 for this rate is 60%, meaning a 40% deposit is required. The Rate Cutter is available for LVRs over 60% and up to 70%, but the rate for these is 0.10% higher.

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 20 September 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

1.79% p.a.

n/a

n/a

n/a

1.88% 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

$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

yes - optional with $10 monthly fee

Application and legal fees charged at settlement. Valuation fee charged at conditional

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.

Details

Rates and fees information correct as at 20 September 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

1.88% p.a.

n/a

n/a

n/a

1.94% 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

$0.00

n/a

$0.00

$0.00

Other financial bits

$50,000

$1,000,000

60.00%

70.00%

Features

Owner Occupier

Principal & Interest

Weekly, Fortnightly, Monthly

yes - free

no

yes - free

$0.00

yes

yes - optional with $10 monthly fee

Application and legal fees charged at settlement. Valuation fee charged at conditional

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.

Details

Rates and fees information correct as at 20 September 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

2.18% p.a.

n/a

n/a

n/a

2.24% 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

$0.00

n/a

$0.00

$0.00

Other financial bits

$1,000,001

$2,000,000

60.00%

70.00%

Features

Owner Occupier

Principal & Interest

Weekly, Fortnightly, Monthly

yes - free

no

yes - free

$0.00

yes

yes - optional with $10 monthly fee

Application and legal fees charged at settlement. Valuation fee charged at conditional

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.

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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.