Pepper Money is a non-bank lender founded in 2000 with operations in Australia and New Zealand. It was acquired by US private equity firm KKR in 2017 and listed on the Australian stock exchange (for the second time) in 2021.
Pepper Money’s range of flexible loan products has made it one of Australia’s leading specialist lenders.
It focuses primarily on three segments: residential and small balance commercial real estate mortgages, asset finance and loan and broker services.
Pepper Money provides a variety of home loan solutions to suit every wallet and financial situation, including people with problematic credit histories whom other lenders often shun.
It also offers personal loans, car loans, commercial loans and loans for professional equipment.
Product offerings
Pepper Money only offers variable rate home loans. The following features apply to Pepper Money home loans:
- Up to 80% LVR without LMI
- Offset sub-account
- Free redraw
- Extra repayments
- Non-genuine savings accepted
- Gifted deposits allowed
- Accepts alternative income sources and documents
- Debt consolidation
- Visa debit card access
- Interest-only payments available
- Borrowers with impaired credit history considered
- Loan amounts up to $2.5 million (some loans)
Some Pepper Money variable home loans and their features:
Pepper Prime variable rate home loans
- Pepper Money's lowest variable rate
- For borrowers with a clear credit history
- Non genuine savings accepted up to 90% LVR
- Cash out for acceptable purposes
- Consolidate up to four debts
- May still qualify if credit history contains defaults up to $500 which are fully repaid
Pepper Near Prime variable rate home loans
- Pepper Money's medium interest rate
- For borrowers with no credit problems in last two years
- Unlimited cash out up to 85%
- May still qualify one day after bankruptcy discharge
- Unlimited debt consolidation
- Accepts unlimited defaults and judgements, limited writs
Pepper Specialist variable rate home loans
- Higher interest rate
- For borrowers with challenging circumstances when trying to qualify for home loans
- Non-genuine savings accepted
- Unlimited debt consolidation
- Accepts defaults, mortgage arrears and discharges from bankruptcy
- Self-employed income sources recognised with ABN registration and GST registration
Record on rate cuts
Pepper Money cut its rates in March 2020, slightly earlier than the RBA rate cut, but not in November 2020.
Eligibility and documents
To be eligible for a Pepper Money home loan you must:
- Be an Australian citizen or permanent resident
- Be at least 18 years old
- Prove your identity
- Have proof of your income (such as payslips or self-employed earnings, plus recent tax return)
- Provide details of your assets and liabilities
Pros and cons
Pros
- Competitive interest rates for good credit history
- Applicants with poor credit history considered
- Alternative income sources, such as self-employed or rental income, Centrelink income, can still qualify
- Mortgage offset accounts available
- Extra repayments and free redraws
- Split loans offered
- Debt consolidation options
Cons
- No fixed rate home loans
- No guarantor home loans
- No construction loans
- Higher interest rates for weak credit history
- Risk fee, comparable to LMI, can be substantial
- No branch access
