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    Reduce Home Loans
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    Darryl MurphyDarryl Murphy
    00:43 04 May 24
    Got a great rate and the team worked hard to get the job done. Kept us up to date the whole way through the process.
    We were so impressed with Ben Ithell, he is knowledgeable, patient and worked really hard getting us an amazing deal that 8 other brokers I called said they couldn’t even touch due to our unusual circumstances. Please give Ben a call and have a chat he is very honest and will tell you straight up if he thinks he can help. Highly recommend him!
    Sahn MillsSahn Mills
    00:47 17 Apr 24
    sara yuansara yuan
    03:52 18 Mar 24
    Working with Ben Ithell and his team was a great experience. The team was very knowledgeable and patient with my questions. They were always on time and reply my emails quickly.Excellent…I would give them my highest recommendation!
    Mark JohnstonMark Johnston
    01:37 06 Feb 24
    Ben Ithell was fantastic, laid all my options out for me. Got me good deal especially considering the unusual circumstances I was in. He kept me up to date, communicated well and was always available to help as I needed it.
    craig kimptoncraig kimpton
    10:02 18 Jan 24
    Professional staff that keep you well informed throughout the process, and provide great savings with lower rates.Ben Ithell was a pleasure to consult with, diligent and extremely professional throughout. Thanks Ben.
    vineet sagarvineet sagar
    08:06 16 Jan 24
    Vaughan Enright was great to deal with. Not only he is well versed with all the home loan technicalities, he also has soft skills to deal with not so knowledgeable people like myself. Communication was outstanding with emails/calls immediately being answered.
    Angie ChuAngie Chu
    11:16 09 Jan 24
    Thank you Reduce Home Loans! If we could give more than five stars, we would. Especially to Ben Ithell whose professionalism and help throughout the entire process was second to none. He is genuinely attentive, caring and a patient customer service/finance manager! We would certainly recommend him to anyone!
    Havea ValaHavea Vala
    16:41 08 Jan 24
    Jonathan DoddJonathan Dodd
    06:47 02 Jan 24
    Amazing experience, I cannot recommend this company or Kurt more. He found a path forward when multiple brokers (at other companies) could not make it work. Kurt does not mess around and I wholeheartedly recommend him if you need to get a loan.
    Alex JenkinsAlex Jenkins
    03:46 21 Dec 23
    I used Kurt Trendle from Reduce Home Loans when completing my refinance. I found him to be extremely helpful, patient and found the right loan for me. I found the whole process to be extremely easy with Kurt. Thanks again!
    Patrick SimonettiPatrick Simonetti
    13:25 22 Nov 23
    Kurt was excellent to deal with. Great customer service, very helpful and experienced. One of the best rates on the market.
    Kate EverettKate Everett
    08:27 08 Nov 23
    Exceptional customer service provided by Nick Freney in assisting us to navigate three separate loans. Wouldn’t hesitate in strongly recommending him to other prospect customers.
    Patrick DawsonPatrick Dawson
    05:55 30 Oct 23
    Just settled on my refinance with Vaughan at Reduce Home Loans. He made the process super easy and efficient. Was also great to be informed regularly throughout the entire process to put my mind at ease.Thanks 👍
    Rina WRina W
    23:27 28 Sep 23
    We have been with Reduce Home Loans since 2015 and they've consistently secured the best rates and account features for us. This month we refinanced to a very competitive rate thanks to our Personal Finance Manager Connor.Connor provided us with helpful guidance and thoroughly answered all our questions. Everything was completed promptly and he was so responsive with our queries. The application process has also become much more streamlined and user friendly over the years.Thanks to Connor (and previously Rhyse) at Reduce Home Loans, we've been able to achieve our dream of having a home for our family. We highly recommend them for their personalised, exceptional service and expertise, as well as their broad product offering. Thanks again!
    Dev GovekarDev Govekar
    23:10 24 Sep 23
    I have used Reduce Home Loans recently. I have dealt with Vaughan from Reduce Home Loans. I find Vaughan very helpful and easy to approach. I think they have great knowledge and great interest rates options and cash back offers. I will recommend to seek their advice for new home loans. Thanks, Dev
    Hin LHin L
    06:42 07 Sep 23
    Zachary has been fantastic through out the whole process.
    James ZhangJames Zhang
    07:43 21 Aug 23
    Kurt was phenomenal, very knowledgable, patient and communicative across the entire process. Can't recommend them highly enough.
    Melanie MaclureMelanie Maclure
    04:35 10 Aug 23
    Vaughan Enright has been an absolute pleasure to deal with. He is always extremely responsive and helpful, listens to my needs, and has been working with me to get the best he can. He has been reliable, getting back to me quickly, calling when he says he will (great timekeeper). Very happy with the experience as I initially called 3 or 4 months ago, he has been very informative from tyre kicking/semi serious stage to now at crunch time. Definitely recommend working with him.
    Wendy ReevesWendy Reeves
    02:23 03 Aug 23
    I have used Reduce Home loans several times to refinance our loan. I cannot recommend them highly enough. They are extremely knowledgeable and have access to highly competetive interest rates. Their communication throughout the loan application process is excellent and it is very easy to get in touch with them when you need to. Definitely use Reduce!
    Brad GosbellBrad Gosbell
    07:41 21 Mar 23
    Nick and the team never fail to impress and always achieve better than expected results. With a great network of lenders and products they always manage to deliver, keeping you well informed along the journey. Always know I am in capable hands and a achieving the best of what's out there.I cannot recommend Reduce highly enough. 11 out of 10! Keep up the good worm 👍
    Richard WRichard W
    04:34 20 Mar 23
    Prompt customer service and staightforward process. Access to great rates. Clear communication. Loan settled without problems and would definitely use them again.
    Kumbi MKumbi M
    04:06 20 Nov 22
    We have been working with Reduce Home Loans for a few years now. We have done some refinancing of home loans and have applied for new home loans with Reduce Home Loans. Each and every time we managed to get some awesome deals, lowest variable rates available on the market. I highly recommend Reduce Home Loans. We will definitely use them again in future!!
    Michelle DavisMichelle Davis
    21:15 15 Sep 22
    Nick Freney, from reduced home loans, was fantastic. He made the whole process of refinancing my house loan, hassle free and also got me a great interest rate. I can't recommend Nick and his team highly enough.
    Goran MaricGoran Maric
    03:46 15 Sep 22
    Reduce were very easy to work with, and they got us the lowest variable rate on the market - which is saving us thousands each year.Highly recommend. We'll definitely go with them again in the future.
    David ElmerDavid Elmer
    10:05 30 Aug 22
    Overall, we are happy with our experience at Reduce. We moved from another non-bank lender, who wouldn't move our rate, despite their new owner rates being much lower, and our loans under what we originally borrowed. Nick and the team from Reduce were very easy to deal with, and our rate has been competitive since we started with them.
    Jon McilveenJon Mcilveen
    06:52 11 Aug 22
    Just refinanced with Reduce Home Loans. Better interest rates, staff have been nothing but helpful and easy process. Can't ask for more!
    Chris LimChris Lim
    07:55 04 Aug 22
    I had a fantastic experience dealing with Reduce Home Loans who provided finance for my SMSF to purchase an investment property in July 22. I was particularly impressed with Bryce Stimpson's helpfulness, knowledge, responsiveness, professionalism and pleasantness. I received an excellent rate and am happy I went with Reduce.
    Peta GeakePeta Geake
    02:41 04 Aug 22
    Using reduce loans has saved me a lot of money on our home loan. The staff are professional and caring, always easy to get in contact with and there to help with any questions you. The switch from one of the big 4 banks (wont name names of who was ripping us off!) was easy with reduce loans. I highly recommend anyone to get in contact and see how many money they can save you.
    Amanda BeresfordAmanda Beresford
    20:09 16 Jun 22
    Reduce Loans were able to find us a much better home loan rate. The process was so easy and we were walked through every step. Everything was done online and the whole process was handled quickly. I would highly recommend working with Reduce Loans.
    Matt HingstonMatt Hingston
    00:42 16 Jun 22
    We secured a great loan with Reduce far below market rates of the large lenders. Was particularly impressed by their flexible banking style in setting up the loan and Nick Freeney was great to work with in the loan application. The only issue is the application process was longer and more admin intensive than some other loans so removing one star - but if you stick with it you can save a bunch over the life of the loan.
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    “What does that mean?”

    Here you’ll find an A-Z Glossary of the commonly used home loan and finance jargon and phrases.

    We’ve provided an easy-to-understand definition for each one.

    A.

    Agent: Someone who acts on behalf of another person or organisation. For example, a real estate agent acts on behalf of a landlord or owner when leasing or selling a property.

    Amortisation period: Also known as the loan term. It’s the agreed length of time that a borrower has to repay a loan. It’s set during the application and approval process.

    Application fees: The fees a lender charges to set up the loan. It’s generally to cover the lender’s internal costs.

    Appraised value: The estimated value of a property being used as security for a loan.

    Appreciation: The increase in the value of a property.

    Arrears: An outstanding or overdue amount.

    Assets: Money, property or goods owned.

    Auction: A public sale where a property is sold to the highest bidder.

    B.

    Body corporate: All the unit owners within a strata building. The owners elect a council responsible for the management of the building and it’s common areas.

    Breach of contract: Breaking the conditions of a contract.

    Break costs: Penalty charges for ‘breaking’ or ending a fixed term loan before the agreed date.

    Bridging finance: A loan used to cover the finance gap that can happen when a buyer purchases a new property before selling an old one. Higher interest rates are usually charged for this form of finance, and it has to be paid back after an agreed time.

    Building inspection: An inspection generally carried out prior to the purchase of a property to ensure the building is structurally sound. Contracts of sale can be made subject to the satisfactory building inspection.

    Building regulations: Legal or statutory rules set up by a local council to control the manner and quality of buildings in it’s jurisdiction. The rules are generally designed to ensure public health and safety as well as acceptable standards of construction.

    Building society: A financial institution owned by its customers or “members”. It offers banking and other financial services, especially mortgage lending.

    C.

    Capital gains: The financial or monetary gain obtained when an asset is sold for more than its original price.

    Capital gains tax: A federal tax on the monetary gain made on the sale of an asset bought after September 1985. The tax does not apply to the gains made on the sale of an owner-occupied residence, so it generally applies only to investment properties.

    Capped loan: A loan where the interest rate cannot exceed a set level for a period of time but, unlike fixed rate loans, can fall.

    Caveat: A caveat lodged upon a land or property title indicates that a party, that is not the owner, claims some right over or interest in the property.

    Certificate of Title: A record of all current information relevant to a particular property or piece of land, including:

    • Current ownership details.
    • Any registered encumbrances or caveats.
    • Lot or plan details.

    A lender usually holds this document as security. Once the loan is fully repaid, the Certificate of Title is returned to the borrower.

    Chattels: Chattels are items of personal property, such as clothing, appliances and furniture. In real estate terms chattels are usually movable items which may be included in the sale, such as furniture.

    Commission: The fee or payment made to a real estate agent for services.

    Contract of Sale: A written agreement outlining the terms and conditions for the purchase or sale of a property.

    Conveyance: The transfer of property ownership and changing the title of a property from the seller’s name to the buyer’s name.

    Conveyancing: The legal process for the transfer of ownership of real estate.

    Cover note: A guarantee of temporary property insurance before the implementation of a formal policy.

    Credit: Borrowed money or other finance to be paid back under an arrangement with a lender.

    Credit union: A cooperative which operates similarly to a bank, but is owned and controlled by people who use its services.

    Creditor: A person or organisation who is owed money.

    D.

    Debtor: Someone who owes money to someone else.

    Deed: Another word for title. It’s a legal document that states all information regarding the ownership of a property or piece of land.

    Default: Failure to abide by the terms of a mortgage or loan agreement – such as not making loan minimum required repayments. Defaulting on a loan may result in financial penalties and, in extreme cases, the mortgage holder taking legal action to repossess the mortgaged property.

    Deposit: An amount paid by the buyer at the time of exchanging the contract for sale. It acts as a commitment to buy. Normally a minimum of 5-20% of the total purchase price is required.

    Deposit bond: A guarantee from a financial institution that a deposit will be paid to a seller. It’s useful for buyers with savings in a term deposit because it can be offered at the time of exchange – instead of a cash deposit. Which means the buyer doesn’t have to break the term deposit and lose any interest accrued. The buyer must pay the full purchase price of the property, including the amount of the deposit, at settlement. In the event that buyer does not settle on the property the seller will be paid the deposit amount by the financial institution.

    Direct debit: Regular electronic debiting of funds from a nominated cheque or savings account.

    Disbursements: Miscellaneous fees and charges incurred during the conveyancing process, including search fees and charges paid to government authorities.

    Discharge fees: An administration fee to cover the costs incurred in terminating a loan account.

    Discharge of Mortgage: A document signed by the lender and given to the borrower when a mortgage loan has been repaid in full.

    Disposable income: A person’s remaining income after all known expenses, such as loan payments and bills, have been met.

    Draw down: To access available loan funds. Draw down usually refers to a construction loan, or a line of credit. That is a loan where the limit is set, but the amount is not accessed all at once. The borrower draws down or uses the funds as required, up to the set limit.

    E.

    Easement: A right to use a part of land owned by another person or organisation, for example to access another property.

    Encumbrance: An outstanding liability or charge on a property.

    Equity: The amount of a property actually “owned” by the owner. It’s the current value of a property less the amount still owed on its mortgage. Equity usually increases as the principal of the mortgage is paid off. Market values and improvements to the property can also affect equity.

    Establishment fees: Fees charged by a lender to cover the cost of setting up a loan.

    Exit or early repayment fees: Penalties charged by some lenders when a loan is paid off before the end of its term.

    Extra repayments: These are regular additional repayments on a home loan account, above the minimum required repayment, which can reduce the term of the loan and the interest payable.

    F.

    First Home Owners Grant: A grant from the Federal and State Governments. It was introduced as compensation for the increased cost of housing after implementation of the Goods and Services Tax (GST) on 1 July 2000. It’s only for buyers that have not previously bought property in Australia.

    Fittings: Items not intended to be removed from a property when it’s sold, for example fixed carpets, lights, curtains and stoves.

    Fixed rate: An interest rate that applies to a loan for a set term. Both the interest rate and loan repayments are fixed for the agreed term, regardless of any interest rate variations in the home loan market. The agreed term is usually anywhere between 1 and 7 years.

    Freehold: Complete ownership of a property and the land that it’s built on.

    G.

    Gazumping: When a seller accepts an offer from a buyer but then proceeds to formalise the sale of the property to another buyer with more favourable terms.

    Guarantee: A contract to pay someone else’s debt if they don’t pay it.

    Guarantor: A person or organisation that agrees to be responsible for the payment of a loan – if the actual borrower defaults or is unable to pay.

    H.

    Home equity: The amount of a property actually “owned” by the owner. It’s the current value of a property less the amount still owed on its mortgage. Equity usually increases as the principal of the mortgage is paid off and when property market values increase.

    Home loan: The funds borrowed to purchase a property. The property acts as security for repayment of the loan. The lender holds the title or deed to the property. It’s also known as a mortgage.

    I.

    Instalment: The regular payment that a borrower agrees to make to a lender.

    Interest: The amount charged for the money borrowed from a lender.

    Interest only loan: A loan where only the interest is paid for an agreed term, usually 1 to 5 years. The principal is then repaid over the remaining term of the loan by the conversion of repayments to principal and interest.

    Interest rate: The percentage of the loan amount, used to calculate the interest to be paid for a loan.

    Introductory loan: A loan offered to new borrowers at a reduced rate for an introductory period – usually 6 to 12 months. It’s also called a discounted or honeymoon rate.

    Investment property: A property purchased for the sole purpose of earning a return, either in the form of rent or capital gain. The owner does not live in the property.

    J.

    Joint tenants: Equal holding of a property between two or more people. If one party dies, their share passes to the survivor or survivors.

    L.

    Lease: An agreement between a property owner and a tenant. It allows the tenant to occupy and use a property for a set period in exchange for a set rent.

    Lender’s Mortgage Insurance (LMI): Insurance which covers the lender if a borrower defaults on a loan and the sale of the property doesn’t cover the outstanding debt. It’s usually required for the loans the lender considers more risky. For example, when the amount borrowed is over 80% of the property value. Only the lender is covered by this insurance. It offers no protection to the borrower.

    Line of credit loan: A flexible loan arrangement with a specified limit to be used at a customer’s discretion.

    Lump sum repayments: Additional ad hoc repayments, made over and above the minimum loan repayment required.

    LVR: The ratio of the amount lent to the valuation of the security (usually the house).

    The ratio of the amount lent to the valuation of the home being purchased The loan to valuation ratio (LVR) measures the amount of the loan compared to the value of the property being used as security for the loan, expressed as a percentage figure. From a lender’s perspective, the higher the LVR, the higher the risk to the lender.

    Calculating the LVR

    The LVR is calculated by dividing the loan amount by the value of the property, then multiplying it by 100. The value of the property is determined by the lender’s valuer, and it may be different to the price actually paid for the property. As an example, if your property is valued at $250,000 and you borrow $200,000, the LVR would be 80% (200000 / 250000 x 100 = 80).

    M.

    Maturity: The date when a debt must be paid in full.

    Maximum loan amount: The maximum amount that can be borrowed. It’s based on a borrower’s disposable income, deposit, and the purchase price of the property.

    Minimum loan amount: The minimum amount that can be borrowed.

    Minimum repayment required: The amount a borrower is contractually obliged to pay each month, in order to repay a loan within an agreed term.

    Mortgage: The funds borrowed to purchase a property. The property acts as security for repayment of the loan. The lender holds the title or deed to the property. It’s also known as a home loan.

    Mortgage Broker: A person or organisation offering to organise or sell specific loans on behalf of a group of lenders.

    Mortgage Manager: Different from a Mortgage Broker. Mortgage Managers secure funds from wholesale lenders and have the ability to negotiate and package a deal suited to the customer.

    Mortgage offset account: A savings account linked to a home loan. The interest earned by the money in the savings account offsets – or reduces – the interest due on the home loan. A 100% offset is where the interest rates earned and paid are the same. A partial offset account is where the interest earned on the offset account is only a portion of the rate paid on the home loan.

    Mortgage Protection Insurance: This insurance covers loan repayments should a borrower become sick, injured or redundant and unable to work. It is also called income protection insurance. This insurance covers the borrower not the lender.

    Mortgage registration fee: A State Government charge for the registration of a loan. Because the property acts as security for a home loan, the government requires a home loan to be registered so that all claims on a property can be checked by any future buyers of that property.

    Mortgagee: The lender of home loan funds.

    Mortgagor: The owner or owners of the property offered as security for a loan.

    P.

    Passed in: A property is ‘passed in’ at auction if the highest bid fails to meet the reserve price set by the seller.

    Portability: Allows a different property to be substituted as security for an existing loan. Useful if you are buying a new home but don’t want to set up a new mortgage.

    Principal: The amount owing on a loan, on which interest must be paid.

    Principal & Interest loan: A loan in which both the principal and interest are repaid, during the agreed term of the loan.

    R.

    Re-amortise: To recalculate the minimum repayment required to repay the outstanding balance of a loan over the remaining period. This generally happens when:

    • The loan term is extended or
    • The loan amount has significantly increased or decreased compared to the original loan amount.

    Redraw facility: A component of a variable rate loan which enables a borrower to make extra repayments on the loan but later redraw this money if needed.

    Refinance: To switch mortgage providers and arrange a new loan for the same property.

    Reserve price: At an auction, this is the minimum price acceptable to the seller of a property.

    S.

    Searches: Research carried out, prior to the settlement of the property, to confirm information about the property. Searches are usually arranged by a solicitor.

    Security: An asset that a borrower gives a lender the rights to – so the lender can be confident of getting the money back, one way or another if the debt is not re-payed as per the loan agreement.

    Settlement: There are generally two types of settlement that happen with most property purchases:

    1. Settlement of the property is when the balance of the purchase price is paid to the seller. The buyer receives the keys and becomes the legal owner of the property.
    2. Settlement of a loan coincides with settlement of the property. It’s when the lender transfers the borrowed funds to the seller or the seller’s mortgage holder.

    Split loan: Generally a loan that is part variable and part fixed, but it can also be a loan with multiple variable parts. Borrowers wanting to use equity in a property to invest in the share market may make “multiple variable splits” to better track the return on their investment.

    Stamp duty: A State Government tax based on the purchase price of the property. It’s also payable on mortgages in some states. Each state and territory has different rules and calculations. To estimate the amount of stamp duty you may have to pay, use our stamp duty calculator.

    Strata title: The most common title associated with townhouses and home units. It acts as evidence of a unit’s ownership. In a strata plan, individuals each own a small portion of a strata building such as a unit – which is identified as ‘lot’ on the title. All owners in a strata plan share common property such as external walls, windows, roof, driveways, foyers, fences, lawns and gardens.

    T.

    Tenants in common: A form of agreement often used when friends or family purchase a property together. It details the equal or unequal holding of property by two or more people. If one person dies, their share passes according to their Will or the law, rather than to the owner of the other share.

    Term: The duration of a loan, or a specific period within that loan. This is usually written in months for example, 360 months equals 30 years.

    Title deed: Document disclosing the legal description and ownership of a property.

    Title fees: Charged by a state or territory’s Titles Office for title searches, property ownership transfers, the registration of new mortgages and the discharge of old ones.

    Transfer: A document registered with the Titles Office that confirms the change of ownership or a property.

    U.

    Uniform Consumer Credit Code (UCCC): This is the legal framework that governs the relationship between borrowers and lenders. It requires all credit providers such as banks, building societies, credit unions, finance companies and businesses, to:

    • Explain the borrowers rights and obligations
    • Disclose all relevant information about a loan in a written contract – including interest rates, fees, and commissions.

    V.

    Valuation: A professional opinion of a property’s value.

    Variable rate: A rate that goes up or down depending on money market interest rates.

    Variation: A change to any part of a loan contract.

    Z.

    Zoning: Statutory descriptions of the allowable uses of land as set out by local councils or planning authorities.

    Got any questions?

    You can simply call us on 1300 REDUCE (733 823) to speak to a qualified Personal Finance Manager

    Or check out our FAQ page for more commonly asked questions.

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