Reduce Home Loans — Eco Variable Review (2026)

Rates and conditions verified 9 August 2026

Rates can change without notice. Last verified: 9 August 2026 (AEST). Please confirm details on the bank’s official page.

OO P&I rate

5.94%

p.a. variable ≤80% LVR

Comparison rate

6.00%

p.a. ($150k / 25yr)

Ongoing fees

no monthly or annual fees

About Reduce Home Loans

Reduce Home Loans is an Australian non-bank lender that has won Money magazine's "Australia's Cheapest Home Loan" award multiple times since 2016. The Eco Home Loan Variable is their flagship owner-occupied product, offering a competitive 5.94% p.a. variable rate with no monthly or annual fees.

As a non-bank lender, Reduce operates from a single head office without branch overheads — a model that allows them to consistently undercut the major banks on rate. Loans are serviced by dedicated personal finance managers rather than branch staff.

Note: Reduce Home Loans previously operated at reduce.com.au but has moved to reduceloans.com.au. The old domain is no longer active.

Current Rates

Purpose	LVR	Rate	Comp. rate
OO P&I	≤80%	5.94% p.a.	6.00% p.a.
Investment P&I	≤60%	6.19% p.a.	6.25% p.a.
Investment P&I	≤80%	6.29% p.a.	6.25% p.a.

Verified 9 August 2026. Variable — check reduceloans.com.au for the latest rates.

Fees

Application fee	$0
Establishment fee	$0
Monthly fee	$0
Annual fee	$0
Settlement fee	$0
Valuation fee	At cost (~$400)
Legal fees	At cost (~$225)

Pros and Cons

Pros

✓ Competitive 5.94% OO P&I rate — below Macquarie, HSBC, and Westpac
✓ $0 monthly and annual fees
✓ Unlimited extra repayments
✓ Free unlimited redraw facility
✓ Multi-award winner (Money magazine, Canstar)
✓ Minimum $150k loan — accessible to smaller borrowers

Cons

✗ No offset account — redraw vs offset explained
✗ Non-bank lender — not covered by government deposit guarantee
✗ No branches — online and phone only
✗ Third-party valuation and legal fees apply

How It Compares

Pacific Mortgage Group Owner Occupied Variable
5.59% p.a. — lower rate but also non-bank, no offset
Unloan (CBA) Refinance Variable
5.89% p.a. — refinance only, loyalty discount, CBA-backed
Up Home Variable Rate Loan
5.95% p.a. — free 100% offset, no fees (offset is the key advantage)
Macquarie Bank Basic Home Loan
6.09% p.a. — no offset on basic product, but larger established bank
Reduce Home Loans Eco Home Loan VariableReviewed here
5.94% p.a. — $0 fees, redraw only, non-bank
HSBC Australia Home Value Loan
5.99% p.a. — big-bank alternative with branch access
Westpac Flexi First Option (Online Offer)
5.99% p.a. — big-bank alternative with branch access

→ Compare all home loan rates

Related guides

FAQs

What is the Reduce Home Loans Eco Home Loan variable rate?

The Reduce Home Loans Eco Home Loan Variable charges 5.94% p.a. variable (comp. 6.00% p.a.) for owner-occupied P&I loans at up to 80% LVR. The investment variable rate is 6.19% p.a. at ≤60% LVR, or 6.29% p.a. at ≤80% LVR.

Does Reduce Home Loans offer an offset account?

No — the Eco Home Loan Variable does not include an offset account. It offers a free unlimited redraw facility instead. If an offset account is important to you, consider Up Home (5.95% with free 100% offset) or Macquarie.

Are there any fees on the Reduce Home Loans Eco Home Loan?

No application fee, no monthly fee, and no annual fee. Third-party costs apply: valuation fee at cost (approximately $400) and legal fees at cost (approximately $225). No settlement fee.

Is Reduce Home Loans a bank?

No — Reduce Home Loans is a non-bank lender licensed under Australian Credit Licence No. 388053. It is not an ADI (Authorised Deposit-taking Institution) and is not covered by the government's Financial Claims Scheme. However, it is regulated by ASIC and subject to Australian responsible lending laws.

View Reduce Home Loans →

Information verified 9 August 2026. Rates variable and subject to change. Confirm current rates and conditions on Reduce Home Loans' website before applying. This is not financial advice.