flagFounded: 2010

businessOwned by: Reduce Home Loans Pty Ltd.

monetization_onFunded by: Wholesale lenders such as Adelaide Bank, Source Funding, Origin MMS, and Pepper Money

securityLMI Provider: QBE LMI, Genworth

account_balanceLender type: Non-bank, Online lenders


Reduce Home Loans is not an available lender on our panel. This is a review only.

Reduce Home Loans is an Australian online lender that has been in operation since 2010. For six consecutive years, Money magazine has regarded this lender as the most cost-effective non-bank home loan provider (2016-21). Today, it continues offering the lowest interest rate options to its borrowers. Reduce Home Loans’ unique selling proposition is that it provides a personal finance manager to its clients, who helps them through the application process. This is something new and isn’t available from other lenders in Australia.

How Does Reduce Home Loans Compare?

Pros Cons
  • Extremely competitive interest rates
  • Provides Alt-Doc and Self-Managed Super Fund (SMSF) home loans
  • 100% offset account and redraw facility available with variable-rate loans
  • Offers cashbacks
  • 24/7 online banking
  • Weekly, fortnightly and monthly repayment options
  • People with bad credit can apply
  • Home loan products are available for the self-employed
  • No branch access
  • Does not provide home loans for business or commercial purposes
  • Application fees applicable on all loan products
  • Higher interest rates are charged on SMSF, Alt-Doc and bad credit home loans
  • Does not lend to expats or foreign residents
  • Uses the broker channel and intermediaries; however, some policies may not be accommodating for them

What Home Loan Types Does It Have?

The home loan packages Reduce Home Loans offers are mostly traditional and are available with other lenders. What makes their packages stand out from the rest is the unbeatable interest rates. The most common types of home loans Reduce Home Loans provides are:

The lender also offers the following types of home loan packages:

Cashback Home Loans

Cashback Home Loans are available for purchase, refinance and construction purposes at a variable rate. You can get cashbacks ranging from $1,000 to $10,000 under this package, depending on the size and purpose of your home loan. Below are the conditions to apply for the cashback:
  • The loan amount must be greater than $250,000, and the Loan-to-Value Ratio (LVR) must be above 90%.
  • The security kept must not be commercial.
  • The applicant must not be an individual SMSF trustee.
  • An applicant cannot use the cashback offer in conjunction with any other cash bonus offer available from the lender.
  • Loan applications via brokers and other intermediaries are not eligible.

Buying My Next Home

The Buying My Next Home package with Reduce Home Loans is suitable for borrowers who already have a house to their name and:
  • Want to upsize by selling off their current home
  • Want to use a portion of their existing home’s equity to purchase a second property
  • Want to buy an investment property for some side income
Under this package, the lender allows you to borrow with an LVR of up to 80%. Benefits include an unlimited extra repayments option and a full redraw facility.

Requirements To Apply With Reduce Home Loans

Below are the requirements to apply for a loan with Reduce Home Loans.
  • Be 18 years old or over.
  • Proof of employment and income (payslips or bank statements)
  • A list of your assets, debts and liabilities, with supporting documents

Documents Needed To Apply With Reduce Home Loans

Listed below are all the documents you need to submit to Reduce Home Loans’ online portal with your home loan application.
  • Recent payslips/group certificates or employment contracts, with terms of employment
  • Driver’s licence, passport, Medicare card or any other type of legal identification document
  • Signed copy of contract of sale for those purchasing a house
  • Rates notice for the existing property, to be used as security for refinancing or equity release
  • Home loan statement from last six months for refinancing
  • First Home Owner Grant (FHOG) application if you are a first-home buyer
  • Other documents, depending on your situation

Tips For Applying With Reduce Home Loans

Below is a list of tips that you can make use of while applying with Reduce Home Loans:
  • Have good knowledge of the property market and home loan process.
  • Check the “How much can I borrow?” and mortgage repayment calculators from the Reduce Home Loans website to get a clear idea of your borrowing limit.
  • Ask for the lending guidelines and go over them carefully.
  • Reduce Home Loans prefers customers who work with their mortgage managers over brokers. Unlike a broker, a mortgage manager will always prioritise the lender’s position over yours. This can be of massive disadvantage for you as a borrower.

Compare Reduce Home Loans With Other Lenders

Still unsure about which lender is right for you? Talk to one of our specialist mortgage brokers at Home Loan Experts. We will first discuss your situation, complete a pre-assessment and find suitable lender options for you. Give us a call on 1300 889 743 or fill in our free online enquiry form.