Pepper home loan repayment calculator

Thinking about taking out a home loan with Pepper? Use our home loan calculator to see how much you’d have to repay under different borrowing scenarios. You can also see how Pepper home loans compare with other options.

I'd like to borrow

$

I am an

Loan term

With a repayment type

Your estimated repayments

at interest rate 2.85 %

Total interest payable

$0

Total amount payable

$0

Pros and cons

Pros
  • Award winning loans
  • Flexible loan options
  • Cater to borrowers with specific needs like low doc loans and self-employed
Cons
  • No branch access
  • Less competitive interest rates on some specialist loans

Pepper home loans rates

Product
Advertised Rate
Total estimated upfront fees
Company
Comparison Rate*
Ongoing fee
Go to site

2.85%

Variable

$1039
Pepper

3.05%

$10 monthly
More details

2.85%

Variable

$1039
Pepper

3.05%

$10 monthly
More details

2.85%

Variable

$1039
Pepper

3.05%

$10 monthly
More details

2.99%

Variable

$1039
Pepper

3.19%

$10 monthly
More details

3.09%

Variable

$1039
Pepper

3.29%

$10 monthly
More details

3.19%

Variable

$1039
Pepper

3.39%

$10 monthly
More details

3.35%

Variable

$1039
Pepper

3.55%

$10 monthly
More details

3.35%

Variable

$1039
Pepper

3.55%

$10 monthly
More details

3.35%

Variable

$1039
Pepper

3.55%

$10 monthly
More details

3.35%

Variable

$1039
Pepper

3.55%

$10 monthly
More details

3.35%

Variable

$1039
Pepper

3.55%

$10 monthly
More details

3.39%

Variable

$1039
Pepper

3.59%

$10 monthly
More details

3.49%

Variable

$1039
Pepper

3.69%

$10 monthly
More details

3.49%

Variable

$1039
Pepper

3.69%

$10 monthly
More details

3.59%

Variable

$1039
Pepper

3.79%

$10 monthly
More details

3.59%

Variable

$1039
Pepper

3.79%

$10 monthly
More details

3.69%

Variable

$1039
Pepper

3.88%

$10 monthly
More details

3.89%

Variable

$1039
Pepper

4.08%

$10 monthly
More details

3.84%

Variable

$1835
Pepper

4.15%

$15 monthly
More details

3.99%

Variable

$1039
Pepper

4.18%

$10 monthly
More details

3.94%

Variable

$1835
Pepper

4.25%

$15 monthly
More details

3.94%

Variable

$1835
Pepper

4.25%

$15 monthly
More details

3.89%

Variable

$1039
Pepper

4.27%

$10 monthly
More details

3.99%

Variable

$1835
Pepper

4.29%

$15 monthly
More details

3.99%

Variable

$1835
Pepper

4.29%

$15 monthly
More details

4.19%

Variable

$1039
Pepper

4.38%

$10 monthly
More details

4.19%

Variable

$1039
Pepper

4.64%

$10 monthly
More details

4.34%

Variable

$1835
Pepper

4.64%

$15 monthly
More details

4.49%

Variable

$1039
Pepper

4.68%

$10 monthly
More details

4.34%

Variable

$1835
Pepper

4.71%

$15 monthly
More details

4.44%

Variable

$1835
Pepper

4.74%

$15 monthly
More details

4.44%

Variable

$1835
Pepper

4.74%

$15 monthly
More details

4.49%

Variable

$1835
Pepper

4.79%

$15 monthly
More details

4.49%

Variable

$1835
Pepper

4.79%

$15 monthly
More details

4.44%

Variable

$1835
Pepper

4.81%

$15 monthly
More details

4.44%

Variable

$1835
Pepper

4.85%

$15 monthly
More details

4.54%

Variable

$1835
Pepper

4.98%

$15 monthly
More details

4.49%

Variable

$1039
Pepper

5.15%

$10 monthly
More details

4.94%

Variable

$1835
Pepper

5.24%

$15 monthly
More details

4.84%

Variable

$1835
Pepper

5.28%

$15 monthly
More details

4.99%

Variable

$1835
Pepper

5.29%

$15 monthly
More details

5.14%

Variable

$1835
Pepper

5.51%

$15 monthly
More details

5.24%

Variable

$1835
Pepper

5.54%

$15 monthly
More details

5.24%

Variable

$1835
Pepper

5.54%

$15 monthly
More details

5.14%

Variable

$1835
Pepper

5.61%

$15 monthly
More details

5.24%

Variable

$1835
Pepper

5.61%

$15 monthly
More details

5.34%

Variable

$1835
Pepper

5.64%

$15 monthly
More details

5.34%

Variable

$1835
Pepper

5.64%

$15 monthly
More details

5.24%

Variable

$1835
Pepper

5.66%

$15 monthly
More details

5.44%

Variable

$1835
Pepper

5.74%

$15 monthly
More details

5.44%

Variable

$1835
Pepper

5.74%

$15 monthly
More details

5.34%

Variable

$1835
Pepper

5.78%

$15 monthly
More details

5.64%

Variable

$1835
Pepper

5.94%

$15 monthly
More details

5.54%

Variable

$1835
Pepper

6.04%

$15 monthly
More details

5.79%

Variable

$1835
Pepper

6.09%

$15 monthly
More details

5.64%

Variable

$1835
Pepper

6.11%

$15 monthly
More details

5.84%

Variable

$1835
Pepper

6.14%

$15 monthly
More details

5.94%

Variable

$1835
Pepper

6.24%

$15 monthly
More details

5.74%

Variable

$1835
Pepper

6.34%

$15 monthly
More details

6.04%

Variable

$1835
Pepper

6.34%

$15 monthly
More details

6.04%

Variable

$1835
Pepper

6.34%

$15 monthly
More details

5.94%

Variable

$1835
Pepper

6.35%

$15 monthly
More details

6.14%

Variable

$1835
Pepper

6.44%

$15 monthly
More details

6.04%

Variable

$1835
Pepper

6.47%

$15 monthly
More details

6.04%

Variable

$1835
Pepper

6.49%

$15 monthly
More details

6.14%

Variable

$1835
Pepper

6.61%

$15 monthly
More details

6.44%

Variable

$1835
Pepper

6.74%

$15 monthly
More details

6.44%

Variable

$1835
Pepper

6.95%

$15 monthly
More details

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

How to apply for a Pepper home loan

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 important to consider how much money you can afford to 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
  • 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, some of its home loans are different from those offered by more 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 payments.

Pepper home loans generally charge establishment and ongoing fees.

 

Pepper home loan rates

Pepper home loan interest rates vary from loan to loan. As a general rule, more traditional borrowers with lower LVRs get lower interest rates than non-traditional 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.

Pepper’s flexible home loans can be valuable to non-traditional borrowers who may not be able to take out home loans from banks, though the rates on these loans may be higher than for more traditional loan products.

Pepper home loans review

Pepper’s home loan products can be valuable for customers who don’t fit within traditional borrower guidelines. 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 aren’t always as low as other online-only lenders who cater to more traditional borrowers.

While fees may vary from loan to loan, Pepper home loans tend to charge an establishment fee as well as ongoing monthly service fees.

Learn more about Pepper

What is a bad credit home loan?

A bad credit home loan is a mortgage for people with a low credit score. Lenders regard bad credit borrowers as riskier than ‘vanilla’ borrowers, so they tend to charge higher interest rates for bad credit home loans.

If you want a bad credit home loan, you’re more likely to get approved by a small non-bank lender than by a big four bank or another mainstream lender.

How can I get a home loan with bad credit?

If you want to get a home loan with bad credit, you need to convince a lender that your problems are behind you and that you will, indeed, be able to repay a mortgage.

One step you might want to take is to visit a mortgage broker who specialises in bad credit home loans (also known as ‘non-conforming home loans’ or ‘sub-prime home loans’). An experienced broker will know which lenders to approach, and how to plead your case with each of them.

Two points to bear in mind are:

  • Many home loan lenders don’t provide bad credit mortgages
  • Each lender has its own policies, and therefore favours different things

If you’d prefer to directly approach the lender yourself, you’re more likely to find success with smaller non-bank lenders that specialise in bad credit home loans (as opposed to bigger banks that prefer ‘vanilla’ mortgages). That’s because these smaller lenders are more likely to treat you as a unique individual rather than judge you according to a one-size-fits-all policy.

Lenders try to minimise their risk, so if you want to get a home loan with bad credit, you need to do everything you can to convince lenders that you’re safer than your credit history might suggest. If possible, provide paperwork that shows:

  • You have a secure job
  • You have a steady income
  • You’ve been reducing your debts
  • You’ve been increasing your savings

Who offers 40 year mortgages?

Home loans spanning 40 years are offered by select lenders, though the loan period is much longer than a standard 30-year home loan. You're more likely to find a maximum of 35 years, such as is the case with Teacher’s Mutual Bank

Currently, 40 year home loan lenders in Australia include AlphaBeta Money, BCU, G&C Mutual Bank, Pepper, and Sydney Mutual Bank.

Even though these lengthier loans 35 to 40 year loans do exist on the market, they are not overwhelmingly popular, as the extra interest you pay compared to a 30-year loan can be over $100,000 or more.

Are bad credit home loans dangerous?

Bad credit home loans can be dangerous if the borrower signs up for a loan they’ll struggle to repay. This might occur if the borrower takes out a mortgage at the limit of their financial capacity, especially if they have some combination of a low income, an insecure job and poor savings habits.

Bad credit home loans can also be dangerous if the borrower buys a home in a stagnant or falling market – because if the home has to be sold, they might be left with ‘negative equity’ (where the home is worth less than the mortgage).

That said, bad credit home loans can work out well if the borrower is able to repay the mortgage – for example, if they borrow conservatively, have a decent income, a secure job and good savings habits. Another good sign is if the borrower buys a property in a market that is likely to rise over the long term.

Who has the best home loan?

Determining who has the ‘best’ home loan really does depend on your own personal circumstances and requirements. It may be tempting to judge a loan merely on the interest rate but there can be added value in the extras on offer, such as offset and redraw facilities, that aren’t available with all low rate loans.

To determine which loan is the best for you, think about whether you would prefer the consistency of a fixed loan or the flexibility and potential benefits of a variable loan. Then determine which features will be necessary throughout the life of your loan. Thirdly, consider how much you are willing to pay in fees for the loan you want. Once you find the perfect combination of these three elements you are on your way to determining the best loan for you. 

What's wrong with traditional ratings systems?

They’re impersonal 

Most comparison sites give you information about rates, fees and features, but expect you’ll pay more with a low advertised rate and $400 ongoing fee or a slightly higher rate and no ongoing fee. The answer is different for each borrower and depends on a number of variables, in particular how big your loan is. Comparisons are either done based on just today or projected over a full 25 or 30 year loan. That’s not how people borrow these days. While you may take a 30 year loan, most borrowers will either upgrade their house or switch their home loan within the first five years. 

You’re also expected to know exactly which features you want. This is fine for the experienced borrower, but most people know some flexibility is a good thing, but don’t know exactly which features offer more flexibility than others. 

What is the flexibility score?

Today’s home loans often try to lure borrowers with a range of flexible features, including offset accounts, redraw facilities, repayment frequency options, repayment holidays, split loan options and portability. Real Time Ratings™ weights each of these features based on popularity and gives loans a ‘flexibility score’ based on how much they cater to borrowers’ needs over time. The aim is to give a higher score to loans which give borrowers more features and options.

They’re not always timely

In today’s competitive home loan market, lenders are releasing new offers almost daily. These offers are often some of the most attractive deals in the market, but won’t get rated by traditional ratings systems for up to a year. 

The assumptions are out of date 

The comparison rate is based on a loan size of $150,000 and a loan term of 25 years. However, the typical loan size is much higher than that. Million dollar loans are becoming increasingly common, especially if you live in metropolitan parts of Australia, like Sydney and Melbourne. It’s also uncommon for borrowers to hold a loan for 25 years. The typical shelf life for a home loan is a few years. 

The other problem is because it’s a percentage, the difference between 3.9 or 3.7 per cent on a $500,000 doesn’t sound like much, but equals around $683 a year. Real Time Ratings™ not only looks at the difference in the monthly repayments, but it will work out the actual cost difference once fees are taken into consideration. 

What is a debt service ratio?

A method of gauging a borrower’s home loan serviceability (ability to afford home loan repayments), the debt service ratio (DSR) is the fraction of an applicant’s income that will need to go towards paying back a loan. The DSR is typically expressed as a percentage, and lenders may decline loans to borrowers with too high a DSR (often over 30 per cent).

How do I refinance my home loan?

Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.

Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.

Can I change jobs while I am applying for a home loan?

Whether you’re a new borrower or you’re refinancing your home loan, many lenders require you to be in a permanent job with the same employer for at least 6 months before applying for a home loan. Different lenders have different requirements. 

If your work situation changes for any reason while you’re applying for a mortgage, this could reduce your chances of successfully completing the process. Contacting the lender as soon as you know your employment situation is changing may allow you to work something out. 

How will Real Time Ratings help me find a new home loan?

The home loan market is complex. With almost 4,000 different loans on offer, it’s becoming increasingly difficult to work out which loans work for you.

That’s where Real Time RatingsTM can help. Our system automatically filters out loans that don’t fit your requirements and ranks the remaining loans based on your individual loan requirements and preferences.

Best of all, the ratings are calculated in real time so you know you’re getting the most current information.

I can't pick a loan. Should I apply to multiple lenders?

Applying for home loans with multiple lenders at once can affect your credit history, as multiple loan applications in short succession can make you look like a risky borrower. Comparing home loans from different lenders, assessing their features and benefits, and making one application to a preferred lender may help to improve your chances of success

What is a guarantor?

A guarantor is someone who provides a legally binding promise that they will pay off a mortgage if the principal borrower fails to do so.

Often, guarantors are parents in a solid financial position, while the principal borrower is a child in a weaker financial position who is struggling to enter the property market.

Lenders usually regard borrowers as less risky when they have a guarantor – and therefore may charge lower interest rates or even approve mortgages they would have otherwise rejected.

However, if the borrower falls behind on their repayments, the lender might chase the guarantor for payment. In some circumstances, the lender might even seize and sell the guarantor’s property to recoup their money.

How do I take out a low-deposit home loan?

If you want to take out a low-deposit home loan, it might be a good idea to consult a mortgage broker who can give you professional financial advice and organise the mortgage for you.

Another way to take out a low-deposit home loan is to do your own research with a comparison website like RateCity. Once you’ve identified your preferred mortgage, you can apply through RateCity or go direct to the lender.

What is breach of contract?

A failure to follow all or part of a contract or breaking the conditions of a contract without any legal excuse. A breach of contract can be material, minor, actual or anticipatory, depending on the severity of the breaches and their material impact.

What happens when you default on your mortgage?

A mortgage default occurs when you are 90 days or more behind on your mortgage repayments. Late repayments will often incur a late fee on top of the amount owed which will continue to gather interest along with the remaining principal amount.

If you do default on a mortgage repayment you should try and catch up in next month’s payment. If this isn’t possible, and missing payments is going to become a regular issue, you need to contact your lender as soon as possible to organise an alternative payment schedule and discuss further options.

You may also want to talk to a financial counsellor.