Pepper Easy Alt Doc Home Loan

The Pepper Easy Home Loan offers a flexible borrowing option for low doc borrowers and some defaults on their credit file.

The Pepper Easy Home Loan Alt Doc is a low doc loan available to those who aren’t able to provide the usual documents required by a full doc loan. It also caters to those with some negative listings on their credit file, as Pepper ignores defaults under $1,000.

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Richard Whitten

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Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206) and a Tier 1 Generic Knowledge certification (RG 146).

Expert review

You can get this home loan to buy a property for residential purposes, for investment purposes, to refinance your existing loan, or to access funds to make renovations or for use in business. As long as the loan to value ratio (LVR) does not exceed 80%, you can get cash out to use towards renovations, payment of Australian Tax Office (ATO) debts and business expenses.

Acceptable securities include residential properties with land size not exceeding 25 acres (10 hectares).

About this loan

What are the features and benefits of the Pepper Easy Home Loan Alt Doc?

  • Loan amount and loan term. For an LVR of up to 80%, the maximum you can borrow through this loan is $50,000. For LVRs in between 80% and 55%, the maximum loan amount reduces to $650,000. The loan term can vary between 10 and 40 years.
  • LVR. If you plan to buy a home, either to live in or as investment, the maximum LVR stands at 55%. If you're seeking this loan for any other purpose, the maximum LVR reduces to 80%. LVR plays a role in the interest you pay because this loan follows a tiered interest rate structure. For example, you'll be paying a lower interest rate for up to 65% LVR as compared to what you'll have to pay if the LVR is in between 75% and 80%.
  • Repayment flexibility. You have the option to pay the loan off ahead of schedule. You can make extra repayments at any time and you have access to the additional payments via a redraw facility.
  • Redraws. You can redraw money you pay in the form of extra repayments at any time, though you cannot redraw less than $1,000 manually or $50 (online) at a time.
  • Cash out. If you're not borrowing more than 80% of your home's LVR, you can use the money for different purposes. These include paying off ATO debts, using the funds for business purposes and making renovations to your existing home.

What fees and charges come with this loan?

Fees you can avoid
  • Redraw fee: $0. There's no fee for redrawing your additional funds with this loan.
Fees you can't avoid
  • Establishment fee: $995.
  • Mortgage risk fee: Up to 2% of advanced amount. This is charged in the place of LMI and more is charged the higher your LVR is. The fee starts at 0.75% of the loan amount when your LVR is below 65%, and gets as high as 2% if you borrow 95%
  • Monthly administration fee: $15. This fee is charged for the maintenance of your accounts.
  • Title protection fee: $400.
  • Discharge fee: $500.
  • Legal fee: $330 upwards, to include disbursements.

How to apply

Eligibility

In order to qualify, you have to meet the following criteria:

  • You are a permanent Australian resident (some temporary visas will be accepted)
  • You are over 18 years of age
  • You don't have any paid or unpaid defaults (defaults less than $1,000 are ignored), writs or judgements registered less than 24 months before your application

As part of the application process, expect Pepper home loans to go through a variety of information to verify personal, work-related and financial details. As a result, make sure you have the following handy:

  • Australian driver's licence, passport or Medicare card
  • Employment-related information, including an ABN registered for 24 months, GST registered for 12 months, a declaration of financial position, and either 6 months of BAS statements, 6 months of bank statements for your business or Pepper's accountants letter
  • List of all your assets and liabilities
  • Copies of legal documents surrounding the property you wish to purchase

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