Where you can still get a home loan rate under 2%

Reduce Home Loans has announced changes to its home loan product interest rates, with the option for eligible customers to still nab a rate starting with a ‘1’. In a time of rising interest rates, this may be a competitive choice for some Australians.

Following the Reserve Bank of Australia’s recent change to the cash rate, Reduce Home Loans is adjusting its interest rates. However, Australians can still rely on Reduce Home Loans to offer eligible customers some of the lowest interest rates available.

New and existing customers may now be able to choose from not only a number of home loans that are more competitive than the average home loan rate, but may still enjoy an interest rate below 2%.

 

For new and existing customers on the following home loans, your interest rate still starts with a ‘1’:

  • Super Saver Variable at 1.94% (2.03% comparison rate) for max LVR of 60%
  • Super Saver Variable at 1.99% (2.06 comparison rate) for max LVR of 80%

 

So, if you’re on the hunt for some of the cheapest home loans in the market, it may be worth comparing your options against Reduce Home Loans record-breaking products.

 

Why it’s more important than ever to consider a lower rate loan

The latest data from the Reserve Bank of Australia for March 2022 shows that the average owner-occupier variable interest rate charged for existing homeowners is 2.89%.

 

This means that Reduce Home Loans is offering customers a lower-than-average interest rate on a number of its home loans following the recent cash rate changes, including:

Repayment savings on a $500,000 mortgage: Reduce vs. Average

Interest rate Monthly repayments Repayments over 1 year
Super Saver Variable (60% LVR) 1.94% $2,105 $25,265
Avg. owner-occupier loan 2.89% $2,343 $28,116
Difference -0.95% $238 $2,851

Note – Based on RBA Housing Lending Rates March 2022. Calculations based on a $500,000 home loan with 25-years remaining, does not factor in fees or rate changes.

 

As you can see, opting for a home loan still starting with a ‘1’, like the Super Saver Variable Home Loan, could save eligible customers almost $3,000 in one year in terms of interest charges when switching from the current average variable ongoing rate.

And with the latest cost of living increases and record inflation levels, it’s safe to say that homeowners considering refinancing or first home buyers may want to prioritise a lower rate home loan to help keep their budget in a safe range.

Interest charges are one of the more significant costs associated with a home loan, and if your mortgage repayments are putting pressure on your household budget, it may be worth considering refinancing to a Reduce Home Loans mortgage.

 

How Reduce Home Loans compares

And it’s not just against the average home loan rate that Reduce Home Loans may be delivering savings value for eligible customers, but our home loans below 2 per cent for owner-occupier variable customers are also lower than those offered by the big four banks.

 

Repayment savings on a $500,000 mortgage: Big four banks vs. Reduce

Interest rate Monthly repayments Savings Repayments over 1 year Savings
Super Saver Variable 1.94% $2,105 / $25,265 /
CBA variable owner-occupier rate 2.59% $2,266 $161 $27,192 $1,927
Westpac variable owner-occupier rate 2.54% $2,253 $148 $27,036 $1,771
ANZ variable owner-occupier rate 2.54% $2,253 $148 $27,036 $1,771
NAB variable owner-occupier rate 2.44% $2,228 $123 $26,736 $1,471

Note – Interest rates accurate as of 26.05.2022. Calculations based on a 25-year, $500,000 home loan. Does not factor in fees or rate changes. Similar home loan options offered by four banks as per comparison from RateCity.com.au.

 

How much could you save by switching home loans?

If you are not an existing Reduce Home Loans customer and are considering switching to a lower rate home loan option, you can calculate your potential home loan savings right now.

Simply hop on to our Mortgage Repayment Calculator and discover how much less interest you could be charged on your weekly, fortnightly, or monthly repayments by switching to a lower home loan rate.

Simply enter your details, such as the current loan balance and the years remaining, as well as the interest rate you could be paying. You will then be shown a graph with calculations outlining the amount of interest you may be charged on each home loan.

To compare your existing mortgage repayments with a new option from Reduce Home Loans, simply enter the two interest rates into the calculator and you will see your potential interest savings.

Home owners will still need to meet the eligibility criteria associated with the home loan they are considering refinancing to. It is worth taking time to review this criteria against your personal financial situation to prevent any application rejections.

 

If you’re considering switching your higher rate home loan to a competitive offering from Reduce Loans, or you’re looking for more information on lower-rate home loans, please don’t hesitate to get in touch on 1300 723 823

 

Any statements are general in nature and do not take into account your financial personal situation, objectives or needs. You should consider whether any statement/s is suitable for you and your personal circumstances. Before making any financial decision, consider your circumstances and the product disclosure statement.

1300 733 823

(29)    For the Rate Cutter Variable where the borrower pays $1170 upfront fees then a corresponding loyalty discount of 0.10% p.a. off the Rate Cutter Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(27)    For the Investor Rate Slasher Cash Back Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Investor Rate Slasher Cash Back Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(26)    For the Low Rider Cash Back Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Low Rider Cash Back Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(25)    For the Economizer Cash Back Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.08% p.a. off the Economizer Cash Back Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(24)    For the Super Saver Cash Back Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.10% p.a. off the Super Saver Cash Back Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(23)    For the Super Saver Variable where the borrower pays an upfront fee of $1170 then a corresponding loyalty discount of 0.15% p.a. off the Super Saver Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(22)    For the Economizer Variable where the borrower pays an upfront fee of $1,170 then a corresponding loyalty discount of 0.11% p.a. off the Economizer Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(21)    For the Investor Cash Back Hero Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.08% p.a. off the Cash Back Hero Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(18)    For the Home Owners Dream 1 year fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Home Owners Dream reverted variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(20)    For the Cash Back Hero Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.08% p.a. off the Cash Back Hero Variable (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(14)   For the Investor Rate Slasher where the borrower pays an upfront fee of $1,170 then a corresponding loyalty discount of 0.09% p.a. off the Investor Rate Slasher rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(12)   For the Investor Rate Lovers Interest Only where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.07% p.a. off the Investor Rate Lovers Interest Only rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(11)   For the Wealth Maximizer 3 year fixed Principal & Interest where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Wealth Maximizer reverted variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(10)    For the Wealth Maximizer 2 year fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Wealth Maximizer reverted variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(9)    For the Home Owners Dream 3 year fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Home Owners Dream reverted variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(8)    For the Home Owners Dream 2 year fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Home Owners Dream reverted variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(7)    For the Investor Rate Slasher where the borrower pays an upfront fee of $1,170 then a corresponding loyalty discount of 0.09% p.a. off the Investor Rate Slasher rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(6)    For the Investor Rate Buster Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.08% p.a. off the Investor Rate Buster Variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(5)    For the Rate Buster Variable where the borrower pays an upfront fee of $150 then a corresponding loyalty discount of 0.05% p.a. off the Rate Buster Variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(4)For the Rate Slasher Variable where the borrower pays an upfront fee of $1,170 then a corresponding loyalty discount of 0.08% p.a. off the Rate Slasher Variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.

(3) For the Investor Rate Lovers Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Investor Rate Lovers Variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(2)For the Rate Lovers Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Rate Lovers Variable rate (at that time)  will automatically apply after the 5th anniversary of the loan.  These fees and loyalty discount are factored into the comparison rate.  The loan setup fees are not refundable.

(1) For the Low Rider Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Low Rider Variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.

(28) For the Rate Crusher 1 Year Fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.05% p.a. off the Rate Crusher reverted variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.

(19) For the 1 Year Fixed Wealth Maximizer where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the 1 Year Fixed Wealth Maximizer reverted variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.