Reduce Home Loans Essentials 100% Offset Variable Home Loan

This low-rate, low-fee loan still offers borrowers a 100% offset account.

Many low-rate, basic home loans offer their discounts at the expense of an offset account. But the Reduce Home Loans Essentials 100% Offset Variable Home Loan offers a range of features, including an offset account, while delivering a competitive variable rate and carrying no ongoing fees.

Who is Reduce Home Loans?

Reduce Home Loans is a licensed and regulated finance brokerage that sources home loans from a variety of Australian lenders. Because Reduce Home Loans is an online-only business, it has low overheads and can offer lower rates. And because it can source funding from a variety of Australian lenders, it can offer competitive products to borrowers.

Details to consider about the Reduce Home Loans Essentials 100% Offset Variable Home Loan

This product is a variable rate home loan with no ongoing fees, a redraw facility and a 100% offset account. It’s available to owner-occupiers only. The maximum loan-to-value ratio (LVR) is 70% and the maximum loan amount is $500,000, so this loan is suited to borrowers looking at less expensive properties.

Features of the Reduce Home Loans Essentials 100% Offset Variable Home Loan

  • Loan amount and purpose. The minimum loan amount for the Reduce Home Loans Essentials 100% Offset Variable Home Loan is $50,000 and the maximum is $500,000, so it’s suited to borrowers looking at more affordable properties. This loan is available to owner-occupiers only.
  • Loan-to-value ratio. The maximum loan-to-value ratio for this loan is 70%, so you’ll need at least a 30% deposit to qualify.
  • Repayment type and frequency. This loan allows for principal and interest repayments only. You can repay your loan fortnightly or monthly, and you can make as many additional repayments as you’d like without incurring penalty.
  • 100% offset account. Unlike many low-rate, low-fee loans, the Reduce Home Loans Essentials 100% Offset Variable Home Loan comes with a 100% offset account. This allows you to minimise the amount you pay in interest by offsetting it by the amount of funds in your offset account.
  • Redraw facility. The Reduce Home Loans Essentials 100% Offset Variable Home Loan also comes with a free redraw facility, which allows you to withdraw any additional repayments you’ve made. There’s no minimum amount if you redraw via the internet.
  • No ongoing fees. Unlike many loans that offer a redraw facility, there’s no ongoing account maintenance fee for the Reduce Home Loans Essentials 100% Offset Variable Home Loan. There is a $440 application fee, however.

Fees

  • Application fee. The Reduce Home Loans Essentials 100% Offset Variable Home Loan carries an application fee of $440.
  • Settlement fee. The $130 covers the costs involved with settling your home loan.
  • Valuation fee. Valuations are free up to $440. Any cost above this is paid by the applicant.

How to apply for the Reduce Home Loans Essentials 100% Offset Variable Home Loan

If you’ve compared the Reduce Home Loans Essentials 100% Offset Variable Home Loan with other options and decided it’s the best product for you, click the green “Go To Site” button to be taken to Reduce Home Loans’ website. From there, you’ll be taken through the application process. It helps to have a few pieces of information handy:

    • Personal information. Reduce Home Loans will need to know your name, date of birth and contact information.
    • Financial information. You’ll need to provide information about your income, assets and liabilities, including any debts you have.
    • Loan information. Reduce Home Loans will need to know the size of the home loan you’re applying for and the loan purpose.

The Reduce Home Loans Essentials 100% Offset Variable Home Loan offers an offset account, free redraw and no ongoing fees. If you’re looking for a low-cost loan and you’re buying an affordable property, it could be worth adding to your comparison.

Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question