Reduce Home Loans home loan repayment calculator

Thinking about taking out a home loan with Reduce Home Loans? Use our home loan calculator to see how much you’d have to repay under different borrowing scenarios. You can also see how Reduce Home Loans home loans compare with other options.

I am an

With a repayment type

Borrow amount

$

Deposit amount %

Loan term

Your estimated repayments

at interest rate 2.89 %

Total interest payable

$0

Total amount payable

$0

Pros and cons

  • Low interest rates.
  • Flexible loan options.
  • Loans are suitable to borrowers with smaller deposits.
  • Some loans have low fees.
  • No branch access.
  • Loans have application fees.

Reduce Home Loans home loans rates

Product
Advertised Rate
Total estimated upfront fees
Comparison Rate*
Ongoing fee
Go to site
Company

2.89%

Variable

$1170

2.89%

$0
Reduce Home Loans
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2.89%

Variable

$1170

2.89%

$0
Reduce Home Loans
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2.94%

Variable

$697

2.94%

$0
Reduce Home Loans
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2.94%

Variable

$697

2.94%

$0
Reduce Home Loans
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2.97%

Variable

$0

2.97%

$0
Reduce Home Loans
More details

2.97%

Variable

$0

2.97%

$0
Reduce Home Loans
More details

2.99%

Variable

$697

2.99%

$0
Reduce Home Loans
More details

3.02%

Variable

$0

3.02%

$0
Reduce Home Loans
More details

3.02%

Variable

$0

3.02%

$0
Reduce Home Loans
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3.07%

Variable

$0

3.07%

$0
Reduce Home Loans
More details

3.07%

Variable

$0

3.07%

$0
Reduce Home Loans
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2.97%

Fixed - 3 years

$697

3.14%

$0
Reduce Home Loans
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2.97%

Fixed - 3 years

$697

3.14%

$0
Reduce Home Loans
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2.97%

Fixed - 2 years

$697

3.15%

$0
Reduce Home Loans
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2.97%

Fixed - 2 years

$697

3.15%

$0
Reduce Home Loans
More details

3.19%

Variable

$1287

3.19%

$0
Reduce Home Loans
More details

3.24%

Variable

$1287

3.24%

$0
Reduce Home Loans
More details

3.29%

Variable

$0

3.29%

$0
Reduce Home Loans
More details

3.34%

Variable

$0

3.34%

$0
Reduce Home Loans
More details

3.39%

Variable

$697

3.39%

$0
Reduce Home Loans
More details

3.39%

Variable

$697

3.39%

$0
Reduce Home Loans
More details

3.39%

Variable

$697

3.39%

$0
Reduce Home Loans
More details

3.39%

Variable

$697

3.39%

$0
Reduce Home Loans
More details

3.39%

Variable

$697

3.39%

$0
Reduce Home Loans
More details

3.19%

Fixed - 3 years

$697

3.44%

$0
Reduce Home Loans
More details

3.19%

Fixed - 3 years

$697

3.44%

$0
Reduce Home Loans
More details

3.44%

Variable

$697

3.44%

$0
Reduce Home Loans
More details

3.44%

Variable

$697

3.44%

$0
Reduce Home Loans
More details

3.19%

Fixed - 2 years

$697

3.45%

$0
Reduce Home Loans
More details

3.19%

Fixed - 2 years

$697

3.45%

$0
Reduce Home Loans
More details

3.47%

Variable

$0

3.47%

$0
Reduce Home Loans
More details

3.49%

Variable

$1287

3.49%

$0
Reduce Home Loans
More details

3.49%

Variable

$697

3.49%

$0
Reduce Home Loans
More details

3.52%

Variable

$0

3.52%

$0
Reduce Home Loans
More details

3.54%

Variable

$1287

3.54%

$0
Reduce Home Loans
More details

3.55%

Variable

$1045

3.57%

$0
Reduce Home Loans
More details

3.59%

Variable

$0

3.59%

$0
Reduce Home Loans
More details

3.64%

Variable

$0

3.64%

$0
Reduce Home Loans
More details

3.49%

Fixed - 3 years

$697

3.69%

$0
Reduce Home Loans
More details

3.69%

Variable

$1287

3.69%

$0
Reduce Home Loans
More details

3.74%

Variable

$1265

3.74%

$0
Reduce Home Loans
More details

3.66%

Variable

$150

4.07%

$0
Reduce Home Loans
More details

4.79%

Variable

$3850

5.32%

$395 annually
Reduce Home Loans
More details

4.89%

Variable

$3850

5.42%

$395 annually
Reduce Home Loans
More details

5.29%

Variable

$3850

5.80%

$395 annually
Reduce Home Loans
More details

5.39%

Variable

$3850

5.90%

$395 annually
Reduce Home Loans
More details

5.79%

Variable

$3850

6.29%

$395 annually
Reduce Home Loans
More details

5.89%

Variable

$3850

6.39%

$395 annually
Reduce Home Loans
More details

5.79%

Variable

$3850

6.45%

$395 annually
Reduce Home Loans
More details

5.99%

Variable

$3280

6.53%

$395 annually
Reduce Home Loans
More details

6.29%

Variable

$3850

6.95%

$395 annually
Reduce Home Loans
More details

6.49%

Variable

$3280

6.98%

$395 annually
Reduce Home Loans
More details

6.79%

Variable

$3850

7.45%

$395 annually
Reduce Home Loans
More details

6.99%

Variable

$3280

7.61%

$395 annually
Reduce Home Loans
More details

7.49%

Variable

$3280

8.11%

$395 annually
Reduce Home Loans
More details

Reduce Home Loans customer service

As Reduce Home Loans is an online-only lender, customers won’t have access to bricks and mortar branches. Customers can contact Reduce Home Loans by calling the customer contact centre, emailing the bank directly or by filling out an online enquiry form. Home loan applicants will be assigned a personal finance manager who will guide them through the process all the way to settlement. Customers are also able to chat with a support representative through the Reduce Home Loans website.

  • Customer service (phone, email)
  • Live Chat
  • Mobile banking staff

How to Apply

Borrowers wanting to apply for a Reduce Home Loan can either complete a loan enquiry form online or call customer support for assistance with the application. Before applying for a Reduce Home Loans home loan, think about what you can afford to borrow and what other costs you need to consider. To apply for a Reduce home loan, you will need to supply the following information:

  • Personal identification material.
  • Proof of income and employment.
  • Information regarding your current debts, liabilities and assets.

About Reduce Home Loans

Reduce Home Loans offers home loans for the following types of borrowers:

  • First home buyers
  • Upgraders
  • Investors
  • Refinancers
  • Renovators
  • Self-employed (low-doc loans)

There are a variety of interest rates options available to Reduce Home Loan customers:

  • Variable interest rates
  • Fixed interest rates
  • Principal-and-interest home loans
  • Interest-only home loans
  • Split loans

Reduce Home Loans has several mortgages that would suit borrowers with small deposits, and also offers the ability for parents to sign on as guarantors.

Unlike the big banks that lend out extremely high amounts to eligible customers, Reduce Home Loans has set maximum amounts for its home loans. Several products require loans to be between $50,000 and $2,000,000.

With mortgage terms of up to 30 years, customers can make repayments weekly, fortnightly or monthly.

Reduce Home Loans allows extra repayments to be made without penalty and many of its products come with offset accounts. All mortgages come with redraw facilities, although varying fees apply.

Reduce home loan rates

Like the name suggests, this home loan lender is about “reducing” home loans. Overall, Reduce Home Loan interest rates are very low to moderately low compared to other lenders in Australia.

When it comes to owner-occupiers paying principal and interest as well as interest-only, Reduce Home Loans offer very low to moderately low interest rates.  

Reduce Home Loans investor loans are also at the lower end of the home loan market in Australia. Its principal and interest investor loans are very low, while Reduce Home Loan investor interest-only mortgages are moderately low.

When it comes to fees, there are varying costs, depending on what Reduce Home Loans product a customer chooses. Overall, their upfront fees are moderately high, however the ongoing fees are generally very low.

Reduce Home Loans review

Reduce Home Loans is up against the big banks that offer face-to-face customer service at branches and a much wider variety of financial services. It keeps its interest rates low to stay competitive, with Reduce Home Loan business primarily coming from customers comparing home loan rates online and looking for the best deal for them.

With its simple online model, Reduce Home Loans can service customers anywhere in Australia. Although most of its business is done online, Reduce Home Loans customers can make phone calls to the customer service centre.

Reduce Home Loans has streamlined its application and approval process for home loans, so compared to many of its competitors, it’s straightforward and quick. Customers are assigned a personal finance manager to guide them through this process.

Although it’s only been around since 2010, Reduce Home Loans has consistently won awards for its competitive mortgage products.

How can I get a home loan with bad credit?

If you want to get a home loan with bad credit, you need to convince a lender that your problems are behind you and that you will, indeed, be able to repay a mortgage.

One step you might want to take is to visit a mortgage broker who specialises in bad credit home loans (also known as ‘non-conforming home loans’ or ‘sub-prime home loans’). An experienced broker will know which lenders to approach, and how to plead your case with each of them.

Two points to bear in mind are:

  • Many home loan lenders don’t provide bad credit mortgages
  • Each lender has its own policies, and therefore favours different things

If you’d prefer to directly approach the lender yourself, you’re more likely to find success with smaller non-bank lenders that specialise in bad credit home loans (as opposed to bigger banks that prefer ‘vanilla’ mortgages). That’s because these smaller lenders are more likely to treat you as a unique individual rather than judge you according to a one-size-fits-all policy.

Lenders try to minimise their risk, so if you want to get a home loan with bad credit, you need to do everything you can to convince lenders that you’re safer than your credit history might suggest. If possible, provide paperwork that shows:

  • You have a secure job
  • You have a steady income
  • You’ve been reducing your debts
  • You’ve been increasing your savings

Is the competition just for home loans? What about personal/car loans and credit cards?

This competition is currently for home loans only.

You may still be able to save money by checking the interest rates, fees, and charges on your personal loan, car loan or credit card – compare your options at RateCity.

But keep your eyes open – we may add options for car loans, personal loans, credit cards and more in the future.

How common are low-deposit home loans?

Low-deposit home loans aren’t as common as they once were, because they’re regarded as relatively risky and the banking regulator (APRA) is trying to reduce risk from the mortgage market.

However, if you do your research, you’ll find there is still a fairly wide selection of banks, credit unions and non-bank lenders that offers low-deposit home loans.

Does Australia have no-deposit home loans?

Australia no longer has no-deposit home loans – or 100 per cent home loans as they’re also known – because they’re regarded as too risky.

However, some lenders allow some borrowers to take out mortgages with a 5 per cent deposit.

Another option is to source a deposit from elsewhere – either by using a parental guarantee or by drawing out equity from another property.

What are the pros and cons of no-deposit home loans?

It’s no longer possible to get a no-deposit home loan in Australia. In some circumstances, you might be able to take out a mortgage with a 5 per cent deposit – but before you do so, it’s important to weigh up the pros and cons.

The big advantage of borrowing 95 per cent (also known as a 95 per cent home loan) is that you get to buy your property sooner. That may be particularly important if you plan to purchase in a rising market, where prices are increasing faster than you can accumulate savings.

But 95 per cent home loans also have disadvantages. First, the 95 per cent home loan market is relatively small, so you’ll have fewer options to choose from. Second, you’ll probably have to pay LMI (lender’s mortgage insurance). Third, you’ll probably be charged a higher interest rate. Fourth, the more you borrow, the more you’ll ultimately have to pay in interest. Fifth, if your property declines in value, your mortgage might end up being worth more than your home.

What is principal and interest'?

‘Principal and interest’ loans are the most common type of home loans on the market. The principal part of the loan is the initial sum lent to the customer and the interest is the money paid on top of this, at the agreed interest rate, until the end of the loan.

By reducing the principal amount, the total of interest charged will also become smaller until eventually the debt is paid off in full.

Why are you doing this?

RateCity wants to prove that it pays to check your home loan rate, and provide some extra motivation for doing so. We want to encourage people to take an active interest in their home loans, and gain a thorough understanding of what they’re paying and how much they could save.

Are bad credit home loans dangerous?

Bad credit home loans can be dangerous if the borrower signs up for a loan they’ll struggle to repay. This might occur if the borrower takes out a mortgage at the limit of their financial capacity, especially if they have some combination of a low income, an insecure job and poor savings habits.

Bad credit home loans can also be dangerous if the borrower buys a home in a stagnant or falling market – because if the home has to be sold, they might be left with ‘negative equity’ (where the home is worth less than the mortgage).

That said, bad credit home loans can work out well if the borrower is able to repay the mortgage – for example, if they borrow conservatively, have a decent income, a secure job and good savings habits. Another good sign is if the borrower buys a property in a market that is likely to rise over the long term.

What is a bad credit home loan?

A bad credit home loan is a mortgage for people with a low credit score. Lenders regard bad credit borrowers as riskier than ‘vanilla’ borrowers, so they tend to charge higher interest rates for bad credit home loans.

If you want a bad credit home loan, you’re more likely to get approved by a small non-bank lender than by a big four bank or another mainstream lender.

What is a redraw fee?

Redraw fees are charged by your lender when you want to take money you have already paid into your mortgage back out. Typically, banks will only allow you to take money out of your loan if you have a redraw facility attached to your loan, and the money you are taking out is part of any additional repayments you’ve made. The average redraw fee is around $19 however there are plenty of lenders who include a number of fee-free redraws a year. Tip: Negative-gearers beware – any money redrawn is often treated as new borrowing for tax purposes, so there may be limits on how you can use it if you want to maximise your tax deduction.

What do mortgage brokers do?

Mortgage brokers are finance professionals who help borrowers organise home loans with lenders. As such, they act as middlemen between borrowers and lenders.

While bank staff recommend home loan products only from their own employer, brokers are independent, so they can recommend products from a range of institutions.

Brokers need to be accredited with a particular lender to be able to work with that lender. A typical broker will be accredited with anywhere from 10 to 30 lenders – the big four banks, as well as a range of smaller banks, credit unions and non-bank lenders.

As a general rule, brokers don’t charge consumers for their services; instead, they receive commissions from lenders whenever they place a borrower with that institution.

How can I negotiate a better home loan rate?

Negotiating with your bank can seem like a daunting task but if you have been a loyal customer with plenty of equity built up then you hold more power than you think. It’s highly likely your current lender won’t want to let your business go without a fight so if you do your research and find out what other banks are offering new customers you might be able to negotiate a reduction in interest rate, or a reduction in fees with your existing lender.

What is a guarantor and guarantee?

A guarantor is a person, third party or organisation that agrees to guarantee your loan.

The guarantee is a legal assurance given by the guarantor to pay the loan if the borrower defaults and is unable to pay.

What is a cooling-off period?

Once a home loan’s contracts are exchanged between the borrower and the lender, a five-day cooling-off period follows, during which the contracts may be cancelled if needed.

Why was Real Time Ratings developed?

Real Time RatingsTM was developed to save people time and money. A home loan is one of the biggest financial decisions you will ever make – and one of the most complicated. Real Time RatingsTM is designed to help you find the right loan. Until now, there has been no place borrowers can benchmark the latest rates and offers when they hit the market. Rates change all the time now and new offers hit the market almost daily, we saw the need for a way to compare these new deals against the rest of the market and make a more informed decision.