Pepper Home Loans

Key Features

• Borrow a maximum of $2.5 million depending on loan-to-value ratio

• Loan terms anywhere from 10 to 40 years

• Choose between principal & interest (P&I), or interest-only (IO) up to 5 years for investors

• Weekly, fortnightly, or monthly repayment options; monthly only for IO loans

• Unlimited extra repayments as is the case with variable loans

• Redraw funds for free via Pepper Money online portal

• ‘Offset’ sub account with Visa card available for extra fee per month

• Fixed rates available for 2, 3, 5, 7, or even 10 years

• Split loan repayments available

• Credit decision delivered within 2 days of application

Pepper Money Home Loan Fees

Pepper Money’s exact costs for its fees are opaque. Generally, home buyers can expect to pay any or all of these fees when applying for and settling a loan with Pepper:

• Establishment Fee: One-time application fee for new loans.

• Valuation Fee: Covers independent property valuation costs.

• Title Protection Fee: Non-refundable fee for legal title protection.

• Legal Fee: Covers solicitor costs for loan contracts and settlement.

• Lender Protection Fee (LPF) and Mortgage Risk Fee (MRF): One-time fees for high Loan to Value Ratio (LVR) loans, payable at settlement.

• Monthly Administration Fee: Ongoing fee for loan administration.

• Discharge Fee: Charged upon early loan repayment

A rate-lock fee may apply if you want to know the rate you’ll be ultimately paying at settlement. Further, break fees may apply if you exit a fixed-rate loan early, but could be waived in certain circumstances.

Applying for a Pepper Money Home Loan

Applying for a home loan with Pepper Money is straightforward and can be done entirely online, by phone, or via a website enquiry.

Required Documents

For PAYG Applicants:

• Two current payslips
• Plus one of the following: recent group certificate, tax return/taxation notice, employment letter, or three months of bank statements.

For Self-Employed Applicants:

• Last two years' tax returns
• Two years' tax assessment notices
• One month's business bank statements.

Alt doc loans are available for those who can't provide standard documents.

The loan process typically takes up to six weeks, from application to settlement, though can be done quicker. Pepper says potential delays are likely due to missing or incorrect documentation. 

Application Process

1. Initial Consultation: Meet with a lending specialist to discuss your financial situation.

2. Application Assessment: Credit team reviews your documents and financial status.

3. Pre-Approval: Receive conditional approval, valid for 90 days.

4. Property Valuation: A valuer assesses the property's market value.

5. Final Approval: Get unconditional approval if all conditions are met.

6. Signing Documents: Sign the loan agreements.

7. Settlement Preparation: Confirm the settlement date.

8. Loan Settlement: Funds are transferred, and you receive a welcome letter.