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Pepper Money Essential Alt Doc Home Loan
A self employed home loan which can be used for debt consolidation purposes.
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Review by
Rebecca Pike
rebecca.pike@finder.comRebecca Pike is Finder's senior writer for money. She joined Finder after almost four years writing for business publications in the mortgage and finance industry, including three years as editor of Mortgage Professional Australia. She regularly appears as a money expert on programs like Sunrise and Today, as well as across radio and newspapers. She also holds an ASIC-recognised Tier 1 Generic Knowledge certification.
Expert review
Pepper Money’s alt doc home loan is a great solution for borrowers who might not be eligible for a mainstream loan because of how they are paid. Typically, anyone who can’t provide regular payslips can struggle to be approved for a home loan. That includes anyone who is self-employed or who works as a contractor or in the gig economy.
Pepper Money’s alt doc home loan takes away that barrier. You might expect to pay more in the way of interest rates, but you can still access great home loan features like redraw and an offset account.
The loan also comes with a number of fees, so be sure to consider the true cost of the loan by looking at the comparison rate.
About this loan
What are the features and benefits of the Pepper Money Essential Alt Doc Home Loan?
- Minimum loan size. You can borrow as little as $100,000 with this loan, and your maximum loan size will depend on your Loan to Value Ratio (LVR) - refer to the table below.
- Loan term. This loan has a minimum of 10 years and a maximum of 30 years.
- Repayments. Only principal and interest repayments are allowed with this home loan. You can also make free additional repayments on this loan to pay it off faster.
- Redraw facility. This allows you to withdraw additional repayments you've made on this home loan. A minimum manual redraw of $1,000, though online the minimum is $50.
- Your credit history. You must have a clean credit history.
- Accessibility. You can access your funds through BPAY, internet or phone banking.
- Loan to Value Ratio. There are different maximum LVRs for different loan amounts, which you can see below.
| LVR | Maximum Loan Amount |
|---|---|
| 80% | $1,000,000 |
| 75% | $1,500,000 |
| 70% | $1,000,000 |
What fees and charges come with this loan?
- Establishment fee: $599 (includes one valuation). This fee covers the cost of setting up your account, send a valuer to the property for assessment and the establishment of your home loan.
- Monthly admin fee: $10. This fee is charged for the cost of maintaining your account.
- Legal fees: $330. This fee covers the cost of the legal paperwork involved with the application of your home loan.
- Discharge fee: $500. If you've paid out your loan early before the agreed loan term, sell your property or refinance, then this fee is payable.
How to apply
If you would like to apply or find out more information about this home loan, please fill out the form on the right of this page. After you've filled in the enquiry form a Private Account Manager will call you at a time that suits you.
Eligibility
- Your Australian Business Number (ABN) must have been registered for at least 24 months
- Your Goods and Services Tax (GST) has been registered for at least 12 months.
- You'll need to supply a declaration of financial income plus two of the following documents: Six months of business bank statements, six months Business Activity Statements (BAS) or have your accountant complete Pepper Money's accountants letter
How long does the process take?
Pepper Money advises that you control the length of the process. The sooner that you can supply all the required documentation on the checklist, the quicker you can get a response on your application. Note that a valuation is required before you're approved for a home loan.
