A low-rate variable home loan that doesn't skimp on features.
The Reduce Rate Lovers Special Variable Home Loan features a low variable rate usually associated with no-frills home loans. But this owner-occupier home loan comes with features often only found in products with higher interest rates.
A note on comparison rates
The comparison rate includes the cost of fees and the interest rate. Reduce is offering a 5-year loyalty discount on the interest rate to offset the added cost of fees over the life of a loan. This is why Reduce's comparison rate can be equal to or lower than the interest rate, depending on the loan term.
| Product Name | Reduce Rate Lovers Special Variable Home Loan |
|---|---|
| Interest Rate Type | Variable |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $50,000 |
| Maximum Loan Amount | $750,000 |
| Minimum Loan Term | 1 year |
| Maximum Loan Term | 30 years |
| Maximum LVR | 80% |
| Maximum Insured LVR | 90% |
| Mortgage Offset Account | Yes |
| Mortgage 100% Offset | Yes |
| Loan Redraw Facility | Yes |
| Split Loan Facility | Yes |
| Suitable for Investment | No |
| Extra Repayment | Yes |
| Repayment Type | Principal & Interest |
| Application Fee | $440 |
|---|---|
| Lender's Legal Fee | $220 plus disbursement |
| Valuation Fee | $250 covers up to $330 |
| Ongoing Fees | $0 p.a. |
| Settlement Fee | $150 |
Pros
- $0 service fee
- Low variable interest rate
Cons
- A $440 application fee applies
- A $150 settlement fee applies
What do I need to know about this loan?
The Reduce Rate Lovers Special Variable Home Loan is available to owner-occupiers and is suited to individuals, companies and trusts.
What are the features and benefits of the Reduce Rate Lovers Special Variable Home Loan?
- Loan amount and purpose. The Reduce Rate Lovers Special Variable Home Loan is only available to owner-occupiers. It has a minimum loan amount of $50,000 and a maximum loan amount of $750,000.
- Loan-to-value ratio. The Reduce Rate Lovers Special Variable Home Loan has a maximum loan-to-value ratio (LVR) of 80%, so you’ll need to have at least a 20% deposit.
- Flexible repayments. You can elect to make your repayments weekly, monthly or fortnightly, and you can make as many additional repayments as you like without penalty.
- Free redraw facility. If you need to access the additional funds that you've paid towards your home loan, you can do so using the loan's redraw account. There is no minimum amount for redraws made via Internet banking.
What fees and charges come with this loan?
- Application fee: $440. This one-off fee covers the cost of processing your home loan application.
- Settlement fee: $150. This fee covers the administrative costs of processing the funding for your home loan.
- Legal fee: $220 plus disbursement plus disbursements. This fee covers the legal costs associated with settling your home loan.
How do I apply for this loan?
If you're interested in the Reduce Rate Lovers Special Variable Home Loan you can click the link below. You'll be asked to fill in a few details and you'll be contacted by a Reduce Home Loans team member who will help walk you through the application process.
