Home Loan FAQ

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    Frequently Asked Questions about online home loans

    If you have any questions about home loans or buying a house, here’s a good place to start. We’ve compiled a list of the most commonly asked questions about lending and property finance.

    Can’t find what you’re looking for? Give us a call on 1300 REDUCE (733 823) and our team will be happy to help you out.

    Am I eligible for a Reduce home loan?

    If you are over 18 and can meet Reduce’s lending guidelines, any Australian Resident can apply for a Reduce Home Loan.

    Find out if you’re eligible by calling our Personal Finance Managers on 1300 REDUCE (733 823) or you can submit an enquiry here.

    I'm self-employed. Can I borrow from Reduce?

    Yes. Some of our product range is designed for self-employed borrowers. Subject to meeting our lending criteria. Contact us for more details.

    Who is Reduce Home Loans funded by?

    Our loans are backed by the good fellows at Adelaide Bendigo Bank (ABL), and Origin Mortgage Management Services (Origin MMS).

    Your loan funder depends on the loan product you apply for.

    Find out more about how we do what we do, funding through securitisation to get low rates.

    Is it safe to get a home loan online?

    Absolutely. Reduce Home Loans is regulated by the National Consumer Credit Protection Act 2009 (NCCPA). All personal and credit information is treated with integrity and care, abiding by our Privacy Policy.

    The consumer watchdog Australian Securities and Investments Commission (ASIC) and industry supervisor Australian Prudential Regulation Authority (APRA) also regulate all financial companies including all banks, funders and non-banks within Australia.

    All Reduce Home Loans’ Personal Finance Managers are fully qualified and trained to offer advice regarding home loan enquiries and information collection.

    How do I apply for a loan?

    Applying for a home loan with Reduce is easy. Simply fill out an online enquiry with your preferred day and time to be called by a Personal Finance Manager.

    Alternatively you can give us a call on 1300 REDUCE (733 823) and a Reduce Home Loans specialist will be happy to help you.

    How much can I borrow?

    Check out the Reduce Home Loans How Much Can I Borrow Calculator to get an estimate of how much Reduce can lend you.

    For a more accurate estimate, fill out an online enquiry or give us a call on 1300 REDUCE (733 823). We can even arrange a home loan pre-approval to give you the confidence you need to bid at an auction.

    The minimum and maximum loan amount varies by Home Loan product, see individual home loans for details.

    What are the costs involved in getting a home loan?

    Costs vary depending on the home loan you choose. In addition to application, valuation and settlement fees, you need to allow for other fees such as Stamp Duty and solicitor’s fees. Our easy-to-use Stamp Duty Calculator can help you find out how much Stamp Duty you’ll pay in your State or Territory.

    What documentation do I need to provide?

    Depending on your circumstances and the home loan you have applied for, you will generally need to supply the following;

    • Evidence of income – most recent payslips or letter from employer detailing conditions and most recent group certificate.
    • Completed and signed Reduce Home Loans Application Form
    • Certified coloured copy of your driver’s licence.
    • First Home Owner Grant application (Required for First Home Buyers only).
    • Signed copy of Contract of Sale (Required for Purchase only).
    • 6 months home loan statements (Required for Refinance only).
    • Rates Notice for existing property used as security (Required for Refinance/Equity Releases only).
    • Copy of last 3 months’ loan statements for any loan to be paid out (Required for Loan Consolidation only)

    Please note: we may require additional documentation depending on your circumstances.

    Can I access my home loan online?

    Yes. Once your loan settles, your Personal Finance Manager will guide you through setting up your internet banking.

    Can I make extra repayments?

    Yes, you can make extra repayments on all of our Home Loans. However the terms and conditions relating to extra repayments vary depending on the Reduce Home Loan you choose so please see individual products or speak to your Personal Finance Manager for full details.

    Find out how much quicker you could pay off your loan with our Mortgage Extra Repayments Calculator.

    Can I get access to extra repayments I've paid? (Redraw)

    Yes. All Reduce Home Loans products have a redraw facility. Minimum and maximum amounts and, in some cases, fees may apply – depending on the loan product you choose.

    To find out what’s right for you, check out our home loans or give us a call on 1300 REDUCE (733 823) and we’ll be happy to help.

    How long does it take to get pre-approval?

    In most cases your Home Loan manager will be able to give you a conditional approval within 48 hours. How quickly you get full approval depends on how quickly you are able to provide the necessary documentation to support your application. The most common causes of a delayed approval are normally the simplest – Unreadable Identification, missed signature etc.

    How long does pre-approval last?

    All pre-approvals are valid 3 months from date of issue. You will need to provide up-to-date documentation before formal approval.

    How much Stamp Duty can I expect to pay?

    The Stamp Duty payable on your new property depends on a number of factors including which state you purchase in, whether or not you are a First Home Buyer and whether or not you are going to live in the property or rent it out for investment.

    Check out the Stamp Duty Calculator to work out how much Stamp Duty will be payable on your purchase. The calculator can also help you determine if you’re eligible for any government concessions such as the First Home Owner Grants.

    How much will my basic repayments be?

    Your minimum repayment will depend on the loan amount, if you’re paying Principal and Interest, or just Interest Only.

    Feel free to jump over to our Mortgage Repayment Calculator to estimate payments based on loan term, amount and interest rates.

    What is the maximum interest rate

    We have provide home loans & special home loans such as SMSF & ALT Doc loans as well as loans for those who have an adverse credit and in the past these specialised loans carry a higher interest rate than our main stream home loan offering with a maximum interest rate of 6.5% and some home loan offerings have a maximum of fees payable which are accurate at the time of application and are disclosed in the PDS.

    Can I use the equity in my home as a deposit?

    Yes. You can use the equity in your current property to help you purchase an investment property. Even if you have a mortgage on the property, you will likely have enough equity to purchase an investment property.

    Equity is the value of the difference between what your property is worth and what your mortgage loan is. For example, if you have a property valued at $800,000 with a mortgage of $400,000, you have $400,000 worth of equity.

    You may be able to borrow up to a certain percent of the equity to use toward investing in another property. Your home equity and anticipated rental income can help you buy another investment property sooner.

    What is Lender's Mortgage Insurance (LMI)?

    Lender’s Mortgage Insurance, as the name states, is insurance that protects the Lender not you as the borrower.

    Lender’s Mortgage Insurance (LMI) is a one off fee that normally applies to loans where the customer is borrowing more than 80% of the purchase price. LMI is scaled depending on the percentage you need to borrow (between 80 – 95%) and the amount of the loan (ie, $450,000).

    LMI can start from $6000 and range up to over 5% % of the loan amount. You have two options to pay this fee. Some lenders allow you to capitalise the cost of your LMI, meaning that they will add this figure to your loan amount.

    For example, if you are borrowing $450,000, your LMI may work out to be around $6000. You would actually increase your loan amount to now borrow $456,000 ($450,000 + $6,000).

    What is the difference between Offset and Redraw?

    Mortgage Offset Account. This can reduce interest on your loan. Your mortgage is linked to an account into which your salary and other cash can be deposited. You can then withdraw the funds to pay your bills.

    For example, if you have a loan of $300,000 and have $10,000 in your offset account, the amount of interest you pay will be calculated on only $290,000 ($300,000 – $10,000). Use these savings for another deposit instead of paying off your current mortgage.

    Check out our Mortgage Offset Calculator to see how you can pay less interest on your loan with an Offset Account.

    Extra Repayments/Redraw Facility. You can make extra repayments and create a ‘kitty’ for times when you have unexpected expenses such as plumbing or electrical repairs or for when you’re not receiving a rental income.

    A loan with this feature allows you to skip a mortgage repayment as long as you have enough funds in credit to cover that mortgage repayment.

    Our Mortgage Extra Repayments Calculator can help you crunch the numbers in paying off your home loan with more than the minimum repayment.

    Australia’s lowest rates? How?!

    Find out more about how Reduce Home Loans achieves the super low rates we offer.

    How we do what we do


    Multi-award winning non-bank lender. Operating online, Australia-wide.

    Want to know more? Read more about us.

    Find the Cheapest Home Loan that’s right for you

    No matter what stage of the home loan journey you’re at, we’re here to help you find a great rate across variable, fixed or a mix of both.

    Our home loan range also offer great features and flexibility, so you can apply with confidence.

    Loan calculators and finance calculators

    Crunch the Numbers

    We’ve got a number of home loan and finance calculators available for you to easily crunch those hefty numbers. Give it a try!



    Compare rates, features and fees across all our home loans in this easy table.