Pepper is a non-bank lender that has served over 100,000 Australians since 2001. Pepper is a specialist lender that provides home loans to customers that fall outside traditional borrower profiles.

Pepper has won several awards, including Best Specialist Lender and Best Self Employed Lender in 2016.

Pepper has created a range of home loan products that serve non-traditional borrowers, including options for the self-employed; for those who have had credit issues; and for those who are over-committed financially.

Pros:
  • Award winning loan products.
  • Flexible loan options.
  • Cater to borrowers with specific needs like lo doc loans and self-employed.
  • These loans have broad eligibility criteria.
Cons:
  • No branch access.
  • Less competitive interest rates.
Pepper customer service:

Pepper is an online-only lender, meaning that there are no branches or mobile lenders. Potential Pepper customers can contact the lender through the Home Loan Enquiry hotline, by filling out an online enquiry form or by emailing Pepper directly.

  • Customer service centre (phone, email)
  • Online banking

Pepper home loans

How to Apply

Customers wanting to apply for a Pepper home loan can do so by filling out an online enquiry form, calling the hotline or emailing a lending specialist. Before applying for a home loan it is advisable to think about how much money you could conceivably borrow given your financial situation and income. You will also need to provide documentation when applying for a home loan. This may include:

  • Personal identification material.
  • Proof of income – whether you are self-employed or work for an employer.
  • Information regarding your current debts, liabilities and assets including any personal or car loans.
  • Details of your ABN and GST registration.
  • An accountants letter if necessary.

About Pepper home loans

Pepper is a specialist lender, and as such, its offerings differ from traditional banks. Pepper home loans suit borrowers in unique circumstances, but they still serve a range of borrower types, including:

  • First-time home buyers
  • Investors
  • Refinancers
  • Renovators
  • Self-employed (alt-doc loans)

Pepper home loans can assist borrowers who have had credit issues in the past, borrowers who are overcommitted financially, and borrowers who have experienced life events that have caused defaults on their credit files.

Pepper mortgages have a maximum loan term of 30 years. Extra repayments are allowed. Depending on the product you choose, your Pepper loan may have an offset account and a redraw facility. Borrowers can choose from weekly, fortnightly, or monthly repayments, and can choose between principal-and-interest and interest-only loans.

Pepper home loans generally charge moderate establishment and ongoing fees.

Pepper home loan rates

Pepper home loan interest rates vary from product to product. In general, Pepper home loan rates typically range from moderate to high. While Pepper interest rates are not the most affordable on the market, they’re not the most expensive either.

As a general rule, borrowers with lower LVRs get lower interest rates than borrowers with high LVRs. Pepper’s mortgage interest rates differ between owner-occupiers and investors, as well as between principal-and-interest and interest-only mortgages. Interest-only payments are available for a maximum of five years.

Because Pepper is an alternative lender, it’s able to charge higher rates that are still competitive. Pepper’s flexible home loans can be valuable to non-traditional borrowers who may not be able to take out home loans from banks, which means Pepper can charge slightly higher rates.

Pepper home loans review

Pepper’s home loan products are valuable for customers who don’t fit within traditional borrower parameters. Pepper offers mortgages for self-employed customers, PAYG employees, and those who have had issues with their credit in the past.

Pepper does not have any branches, so Pepper home loans are only suitable for borrowers who are willing to have their home loan communication done entirely online or over the phone.

Pepper offers home loan products for non-traditional borrowers, including those who have unusual financial histories, so their rates are not as low as other online-only lenders who cater to traditional borrowers.

While Pepper’s home loan rates typically sit between moderate and high, their fees tend to be moderate. While fees may vary from product to product, Pepper home loans tend to charge an establishment fee as well as ongoing monthly service fees.

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