who are Reduce Home Loans

Hi All,
Wondering if anybody has had any dealing with Reduce Home Loans who source their funds from Mortgage Ezy. In my quest to find better loan rates than what my current lender is offering,(3.97% P/I for my PPI and 4.99% I/O for my investments) I came across this group who are offering rates of 3.49% for a basic P/I for my PPI and 3.94% I/O for my investments. Theres a few fees to start of with, but long term these rates seem too good given whats happening out in the lending world today. Any feedback would be appreciated.
Thanking you in advance
Tgan

 

I wouldn't refi for rate just yet.

Wait until the dust settles with all these rate hikes first.

There's little point in refinancing now - and then finding out shortly after that your new lender has recently increased rates too.

On another note - check out their discharge fees. Generally with smaller/cheap lenders the costs of refinancing away can be quite high. Also make sure any rates they mention aren't intro rates.

Cheers

Jamie

 

@tgan your rates aren't actually that bad compared to most mainstream lenders. Whilst it is possible to do better, you might find that todays cheap rate becomes expensive very quickly. Not all lenders have increased their rates, but most are expected too.

Mortgage Ezy is actually known to offer cheap rates only to have them increase over time as the cost of your loan goes up. I've seen a lot of instances where an incredibly cheap rate is used to get customers in, but then increases on its own - even when other lenders aren't increasing rates. Be wary of lenders offering super cheap rates, they are rarely the cheapest long term solution.

I am actually accredited to write loans with Mortgage Ezy, but rarely do for this reason.

 

Did a little research, pretty hard to find out, but they look like an online broker/referrer. They get leads from comparison sights and then either rebadge other lenders products like a mortgage manager or refer off to another lender, either directly or through their broker accreditation.
Like I said it was hard decifering it from their website and their chat bot just wanted my callback details.

 

Thanks for the feedback guys. My loan on investments is about $1.5m so difference of about 1% is a massive amount. Trying to look at ways to cut down costs ! At 4.99%, ive just tipped in to negative territory, ooops ! .
Thx again,
Tgan

 

Hi Rolf,
Not sure what you mean? Sorry for sounding a bit ....
Can you maybe rephrase the question?

Its the loans on investments that I am searching for a better deal. My loan on my PPOR is fine at 3.97% p/i. , but investment loans are at 4.99% i/o.
Thx
Tegan

 

@tgan Rolf is very subtle. What he's not saying is that if the lender is not an NDI, then there's no offset account and no protection against the lender doing things like cancelling your redraw in an effort to force you to pay off the loan. This is a risk with securetised funders which includes Mortgage Ezy.

Yes, they're offering cheap rates. There is no guarantee that your money in redraw is safe or that you can access it at a future date.

 

Yup! Had that happen to me, and with Loans com au too.

 

You can argue that all lenders are increasing rates on a whim at the moment. The difference is that mainstream lenders are increasing rates for all borrowers. These types of lenders continue to promote cheap rates for new customers, but quietly increase rates for existing customers.

 

Wow! That would really suck !!!
I must confess, the 1% difference is so very tempting, but I am also so super cautious and sceptical that I feel nervous at the thought of moving away from the big 4 ! I guess in a situation like this, its best to stay put for the moment, but sometimes i think my scepticism probably holds me back a bit....but thats another story

 

How annoying !!

Hope you've managed to re-sort yourself out.

tegan

 

Might not for everyone

 

Plenty of lender options out there and you don't have to necessarily jump to a NDI and roll the dice. Balance your overall needs and you'll likely be able to get a good long term option.

 

Hi

I'm with loans.com.au for 2.5 years now. Started at 4.something, now at 3.71. Most reductions were passed and the couple of times they increased my rate I threatened to leave and got some reduction. I have unlimited redraw, over payments, 100 percent offset and no fees. Pretty good deal and I'm now looking to move IP2 to them at 3.64%

I'm currently refinancing another property to reduceloans. I should know how it goes in a month or two, PM me then and I will share my experience if I don't remember to come back and post.

I find the negativity on these online lenders very contradictory to my personal experience. So do your own checks, if low rates are your key requirement, go for them.

 

What were the rates? When was it too? Was it when every lender increased the interest rates and so did loans.com? I remember they increased to some .13 points and I threatened to leave so they reduced it by .07 making the over all increase .06 for me.

I will add that they were still a much much cheaper rate than the mainstream lenders. I think I had a good 1.00% difference, and it all adds up.

 

At the time, im not 100% sure but it was sub 4% a couple of years ago.

It was at a time when rates were all being REDUCED. They even reduced their own rates for NEW customers only.

I threatened to leave, but didnt offer a reduction, so i left. I chick i spoke to had mad attitude too.

I changed to Mortgage Ezy, who did the same, BUT they did offer a good discount when i was leaving. They just didnt offer the setups i wanted.

Im with a Big 4 now and on a LOWER rate than loans.com.au offers (by 0.08%)

 

Completely opposite to my experience. I have never had an increase with them in the last 2.5 years at a time rates are reducing.. What rate are you on now? Which bank is that if you don't mind sharing as the lower we can all get the better!

 

Westpac, 3.56%
Currently IO, but switching to PI end of month.