Pepper Money Home Loans Review

Break Costs Waived On Two-Year Fixed-Rate Loans

Pepper Money has introduced a new loan product in response to borrowers seeking greater flexibility in managing their home loans amid changing interest rates. This innovative product offers borrowers a two-year fixed term loan that allows them to:

• Switch to a variable rate without paying break fees if interest rates go down during the fixed term.
• Make extra repayments without caps or penalties.
• Split their loan up to four ways and take advantage of an offset sub-account applicable on any variable interest rate portion.

The product is available to new owner-occupier, investor, interest-only, and principal-and-interest loan applicants who qualify. You must apply before 12 May 2023.

Act fast and don’t miss out on this time-limited opportunity! Submit your loan application before 12 May 2023, to take advantage of this special offer! Call us on 1300 889 743 or complete our free online assessment form today!

Is Pepper Reputable?

Pepper is usually our first choice of the specialist lenders if a bank cannot help one of our customers.

They’re ethical, efficient and have fair pricing that enables borrowers to buy a home or refinance even if they’ve been let down by other lenders.

A Specialist Loan Is Only Step 1

Your mortgage broker’s job isn’t over when you get approved for a specialist loan. They should have a plan in place to refinance your loan in 2 – 3 years’ time to get you to an even better interest rate.

We normally look at how long it will be until you have a clear credit history or sufficient income evidence to qualify for a lower interest rate. Then we set a reminder and follow up on that date.

The great news is that Pepper has a range of prime home loans as well so you can actually refinance internally without too much hassle. You get a great interest rate, without too much paperwork.

What Home Loan Types Do They Have?

Pepper has three main home loans and a variation for each depending on if you can prove your income or not.

Pepper Essentials is a prime loan for people with a clear credit history and who can either qualify with a bank or just falls outside of a bank’s lending criteria.

Pepper Easy is a near prime loans designed for people who have some blemishes on their credit file. Typically these borrowers are well outside of bank lending criteria.

Pepper Advantage is a specialist loan for people with serious credit impairment. It has a higher interest rate but it tends to be much more competitive than other specialist lenders.

On all of Pepper’s loans, you have the choice of Full Doc if you can prove your income with payslips or tax returns and Alt Doc if you are self-employed and can provide alternative proof of your income such as BAS, bank statements or an accountant’s letter.

Non-bank Lender Or Investment Bank?

During the GFC, Pepper took a new direction that we didn’t expect. Many of their competitors faced insolvency during the crisis and Pepper then swooped in and acquired their business or took over as the manager of their loan book.

Then Pepper went on an international spending spree that included an Irish Bank, a Korean Bank, a Spanish loan book and a Hong Kong Personal Loan business before returning to Australia to buy Citibank’s commercial loan book and Suncorp’s equipment finance loan book. Most of these acquisitions were at a significant discount.

They’re not just a good specialist lender, they’re also a smart investor.

Reviews From Confused Customers

Pepper took over the loan books for many of its competitors during the GFC but this had one problematic side effect.

Their competitors such as GE Money, Mobius and Seiza all faced financial trouble and put up their customer’s interest rates. This didn’t sit too well with customers, and after Pepper took over managing their loans they blamed Pepper for having a higher interest rate.

Some of them posted nasty reviews online blaming Pepper for something that was really someone else’s fault.