Pepper Money Advantage Alt Doc Home Loan
Get your home loan application assessed on its merits, not your credit score.
The Pepper Money Advantage Alt Doc Home Loan is available credit-impaired and self-employed borrowers. It has a high maximum loan size, a wide variety of purposes it may be used for and a range of features.
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).
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.
About this loan
What are the features and benefits of the Pepper Money Advantage Alt Doc Home Loan?
- Maximum borrowing amounts. You may qualify to borrow up to $2.5 million with this loan, at a maximum LVR of 65%. Higher maximum LVRs are available, but these will come with lower maximum borrowing amounts.
- Repayments. Repayments can be made on a weekly, fortnightly or monthly basis, and there is no penalty for extra repayments.
- Up to four loan splits. Splitting your loan can be useful if you have more than one property, more than one borrower or a couple of debts to separate.
- No third-party lenders mortgage insurance (LMI) approval required. Some lenders require your loan to be covered by third-party LMI, which means your application is subject to approval by the insurer. This isn't the case with Pepper Money as Pepper Money self-insures its home loans. A mortgage risk fee or lender protection fee may be payable instead.
- Redraw. You can redraw any extra repayments, with a $1,000 minimum redraw amount.
- Interest-only option. This loan offers interest-only repayment terms of up to five years on loan terms less than 30 years.
- Refinancing options. A Pepper Money home loan may be used to refinance non-conforming, private and solicitor loans, as well as other loans.
- Long loan term. Lengthy 10-40 year loan term options are available.
- Additional borrowing. Borrowers who take out a home loan with Pepper Money can request additional funds just six months into the mortgage.
What fees and charges come with this loan?
- Establishment fee.$995 To finalise your application, you'll need to pay an establishment fee of $995 which includes one standard valuation charge.
- Mortgage risk fee. Up to 2% of the amount advanced. This fee is to protect the lender and is a substitute for LMI.
- Monthly fee. Borrowers need to pay a monthly service fee of $15.
- Legal fees. $330, plus disbursements to pay to get the legal work sorted on your new loan.
- Title Protection Fee. $400 per loan.
- Discharge fee. A discharge fee of $500 is charged when your loan is paid.
How to apply
You can apply for a Pepper Money Advantage Alt Doc Home Loan by clicking on the apply links available on this page.
Credit file requirements
Unlimited number of judgements or defaults which have occurred two years before you apply, whether they are paid or unpaid may be considered. A further two defaults will also be considered if they occurred between 12-24 months ago. You may also qualify if your mortgage is up to two months in arrears. Defaults less than $1,000 will be ignored regardless of the date in which they occurred.
To qualify for this loan, you'll need to satisfy the following conditions:
- ABN registered for one year
- GST registered for six months
- Declaration of financial position
You'll also need to supply one of these three:
- Six months of business bank statements
- Six months of Business Activity Statements (BAS)
- Pepper Money accountant's letter