Formed in 2000, Pepper Money are a non-bank lender who specialise in providing home loans to those who do not fit the traditional lending criteria. Depending on the consumer’s ability to meet the eligibility criteria, Pepper Money can finance home purchases of up to 95% LVR, making them a good option for anyone struggling to save a large deposit.
Pepper Money have also earned a string of awards including the 2018 ‘Non-Bank of the Year’ from Mortgage Professional Australia and the 2018 ‘Best Non-Bank Lender’ from the Australian Lending Awards.
A simple home loan for borrowers with a clear credit history
The Pepper Essential loan is designed for borrowers with a clean credit history who are struggling to secure a loan due for another reason. The loan has ‘full doc’ and ‘alt doc’ variations, with the maximum LVR for full doc being 95% of the purchase if the loan is no more than $650,000. For the alt doc loan the maximum LVR is 80% for loans up to $1,000,000.
A balanced home loan for borrowers with no credit default
The Pepper Easy loan product is designed for borrowers who have had credit issues in the past but have had a clean credit history for 2 or more years. Like the Essential loan, the Pepper Easy loan has a ‘full doc’ and ‘alt doc’ variation, with the full doc allowing a maximum LVR of 95% so long as the loan is under $650,000. Both versions are available as ‘interest only’ for the first five years, before reverting to Principal and interest repayments.
A home loan no matter what your past is
Whether you need a lender who will accept alternative income verification or your very recent default, this home loan product is for you. You’ll still get a decent interest rate as well as flexibility such as a split loan facility, the ability to consolidate your debts, and a 100% interest offset sub account. Also, you won’t have to worry about LMI approval from a third party. You’ll pay risk fees to Pepper Money instead.
The majority owner of Pepper Money is owned by global investment firm KKR. Pepper Money also receives funding from Commonwealth Bank, NAB and Westpac.
As a lender, Pepper Money has received awards such as Best Specialist Lender and Best Non-Bank Lender at the 2018 Australian Lending Awards. Pepper Money’s loans have the benefit of offering flexibility in relation to how you pay your loan as well as no service, application or exit fees.
Pepper Money is not a bank. Pepper Money is a lender and a global credit provider.
Following the RBA’s emergency rate cut in mid March 2020, Pepper Money decided to not pass on the rate cut. You can find out more about their decision here.
Pepper Money allows customer to apply for certain home loans with a loan deposit. The LVR allowed for most loans is up to 85%. Pepper money will also assess your circumstances to determine your eligibility for this loan. Factors, which could come into consideration, include having a stable income, employment and your credit history.
Pepper Home Loans is an Australian specialist and wholesale lender that operate globally. They provide home loans and even car loans to customers who want an alternative to the banks.
First, you’ll need to have a meeting with your lending specialist at Pepper Money. This can be conducted over the phone and you will be asked about your financial position. You’ll be asked for documentation and the specialist will help you decide on a product. Secondly, the lender will process your application and determine your eligibility. If you are successful, the conditional Pre-approval, valuation, final approval and settlement stages will follow. You can access a more detailed version of the loan application process here.
You could get a pre-approval for a loan after contacting Pepper Money and making an application. Getting a pre-approval from Pepper Money take just 48 hours. You will have a greater chance of getting this pre-approval if you are able to provide all the requisite documentation (such as bank statements and payslips).
All of Pepper Money’s Pre-Approvals are conditional. If you have a property in mind, you can apply for conditional approval. An assessment of your personal finances and a property valuation will need to be conducted by the lender.
Pepper money is a specialist lender and uses ‘risk-based’ pricing. This is because they aim to cater to a wide range of people. Your interest rate will be determined based on your credit history and financial history, or in other words, the risk you pose to the lender. If you’re a high risk customer, you will potentially have a higher interest rate. This is to ensure that you are able to manage your loan adequately.