Pepper Money Essential Home Loan
Enjoy a competitive variable interest rate, flexible repayment options and a redraw facility.
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).
This review is for the full documentation version of the loan, meaning you will need to supply Pepper Money with information about your employment, including payslips. Pepper Money also offers an alternative documentation (low doc) version of the Pepper Money Essentials home loan for self-employed borrowers, which has slightly different requirements.
About this loan
What are the features and benefits of the Pepper Money Essential Home Loan?
- Loan to value ratio. The Maximum Loan to value for loans up to $1,000,000 is 70% LVR. For loans up to $1,500,000 the maximum LVR is 75%. For loans up to $1,000,000 the maximum LVR is 55%. For loans up to $750,000, the maximum LVR is 90% and for loans up to $650,000 the maximum is 95% LVR.
- Additional repayments. You can make extra payments on this home loan at any time.
- Unlimited free redraws. Minimum manual redraw is $1,000 and minimum online redraw is $50.
- Loan term. Loan terms are from 10 years to 30 years.
- Split rate. You can split this home loan up to four times.
What fees and charges come with this loan?
- Establishment fee. $599. This covers the cost of setting up a new account, and also includes one standard valuation.
- Lender protection fee. Amount varies. If your LVR is greater than 55% for full doc loans then this fee applies.
- Monthly admin fee. $10 per month. This covers the cost of maintaining your account.
- Legal fee. From $330. This fee is charged to cover all legal expenses including the paperwork and someone to review to contracts.
- Discharge fee. $250 per loan account. This is the fee you'll pay to leave this loan.
How to apply
Pepper Money will review your financial circumstances and recommend the most suitable loan for your circumstances. A package is then mailed to you which will cover the loan application, a summary of the terms and fees discussed along with next steps to complete the loan application.
- You'll need at least 10% deposit
- You can have minor non-financial defaults up to $500 considered, but they must be paid
What documentation do I need to supply?
- Income documentation including the last two pay slips plus one of the following: a letter of employment, latest group certificate, tax assessment notice or three months bank statements. Self-employed borrowers must produce two years tax returns and two years tax assessment notices.
- Income documentation for the alt doc loan includes an ABN registered for 24 months, GST registered for 12 months, declaration of financial position plus two of the following: six months business bank statements, six months BAS, or Pepper's accountant's letter.
You can apply for a Pepper home loan by contacting Pepper Money directly online, which you can do by filling out the form on the right of this page.