A self employed home loan which can be used for debt consolidation purposes.
If you’re looking to purchase, refinance or invest in a property, you may want to consider the Pepper Money Essential Alt Doc Home Loan. This loan is also available for debt consolidation (up to four debts).
You also don’t need to have genuine savings to be eligible, but you’ll need to offer a residential property or vacant land as security. The residential security can have a maximum size of 10 hectares, and the vacant land up to 1.01 hectares.
You might also want to consider the PLUS version of this alt doc loan, which allows more flexibility such as cash out and interest only (for a slightly higher rate).
| Product Name | Pepper Money Essential Prime Alt Doc Home Loan |
|---|---|
| Interest Rate Type | Variable |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $100,000 |
| Maximum Loan Amount | $2,000,000 |
| Minimum Loan Term | 10 years |
| Maximum Loan Term | 30 years |
| Maximum LVR | 55% |
| Maximum Insured LVR | 80% |
| Mortgage Offset Account | Yes |
| Mortgage 100% Offset | Yes |
| Loan Redraw Facility | Yes |
| Split Loan Facility | Yes |
| Loan Portable | Yes |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | No |
| Repayment Type | Principal & Interest or Interest Only Options |
| Application Fee | $599 |
|---|---|
| Lender's Legal Fee | $440 |
| Ongoing Fees | $10 monthly ($120 p.a.) |
| Settlement Fee | $0 |
| Discharge Fee | $250 |
Pros
- No valuation fee and settlement fee.
- Redraw Facility.
- You can split your loan to keep personal and investment funds separate.
- This loan is available for investors.
Cons
- $599 application fee.
- There is $10 per month account fee.
- $440 Legal fee.
- $250 discharge fee.
Who is Pepper Money?
Pepper Money is a non-bank lender specialising in helping self-employed borrowers and borrowers who've had some rough patches in their credit history. While Pepper is a homegrown brand, it has expanded to be a global credit provider, with offices in Spain, South Korea, Ireland and the UK.
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% | $2,000,000 |
Fees and charges
- 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: $440. This fee covers the cost of the legal paperwork involved with the application of your home loan.
- Discharge fee: $250. 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 for the Pepper Money Essential Alt Doc home loan
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.
