A Home Loan Breakthrough – Interest Rate From 2%

Last week in my Radio Wealth Episode 14 podcast, I shared with you some really exciting information about a home loan product that had an interest rate potentially as low as 2%.

Rate Reducer

Yes, TWO percent.

Needless to say it has caused quite a stir and there are lots of investors out there who have been emailing in asking questions.

One in all in I say, so I am going to reproduce a few of the best questions, and the answers here so that you can get a better feel for what the product is.


  1. Why is this loan so cheap? – The rate reducer can offer you a home loan as low as two percent on your own home, while maintaining a normal rate on your investment property loan. In effect, the loans are bunched together to achieve a lower rate on your own home, enabling you the ability to pay it off faster.
  2. Is it legal? – Yes the Rate Reducer has a taxation office ruling which allows the unique low rate structure that effectively keeps interest deductibility maximized on your investment property.
  3. Why did you call it Rate Reducer? – Because the longer you have the loan, the lower the rate can go. The rate you start at will depend upon the amount of your loan/s and a few other factors , but each year, depending on what you are able to pay off your loan, your rate will actually reduce. Bear in mind though – the facility is a variable one, so apart from the special rate reducing feature, the loan can otherwise go up or down as you would normally expect if official interest rates changed.
  4. What do I have to do to qualify? – To qualify for this loan is no more difficult than dealing with your usual bank. You need to be able to qualify for a loan depending on your income, LVR and other factors. The key with this product is that you need to have a loan on your own home and at least one other investment property to make it work.
  5. Which bank is it with? – The funding stems from a number of major banks and is rolled in to a wholesale product by a company called Origin.
  6. Can I have an offset? – Yes, Rate Reducer does have an offset facility.
  7. Are setup fees deductible – the proportion of setup fees that relate to your investment property/s is deductible but not the amount that relates to your own personal home.
  8. What is the maximum loan size & LVR? – The maximum loan size is $750,000 per property – if you need more the financing team has ways to quarantine the excess over $750,000 and still offer you a good solution. The Maximum LVR on the facility is 90% – which is awesome.
  9. Can I build a home using this facility? Unfortunately not, the Rate Reducer loan can only be used on existing property. Though it is quite possible to obtain a construction loan and then once complete, get a valuation and roll that over on to the Rate Reducer.
  10. How many properties can I put onto Rate Reducer – as far as we are aware there is no limit, excepting your ability to borrow.
  11. Sound too good to be true? – Yes, we agree too. But fact is, there are investors out there now who have had loans settled and are enjoying home loans that have an interest rate that start with a “two.” Just complete the details in the page here  and one of the team will be in touch to walk you through the process and answer your questions.
  12. Why isn’t everybody doing this? – This is a very new product that has only just been released to the market. It has been through its testing phase and loans are now being written and settled.


This is a fabulous opportunity to get what is probably Australia’s best home loan rate and take advantage of that low rate to pay down some debt.

To find out more or if you would like to listen to the 20 minute podcast, simply click here  – go to the bottom of the page, complete the online form and one of the team will be in touch as soon as they can. Please bear in mind that there is a wait list for this product, so it will probably pay you to let the team know you are interested as soon as you can.

Please note: I reserve the right to delete comments that are offensive or off-topic.