Your 101 on Pepper Money's Near Prime Loans

Posted 17-09-2018
Pepper Money home loan products


With tightening lending criteria, more borrowers are being turned away by mainstream lenders than ever before. There has never been a better opportunity for you to assist underserved families with a Near Prime loan and create new clients for life.

What makes a borrower Near Prime?

Mainstream lenders typically restrict the borrower profiles they accept to clean credit, vanilla customers. Pepper Money knows that real life happens and that borrowers may fall outside of this profile for a number of reasons, such as:

  • Borrowers with complex income (e.g. contractors, overtime or receive income from multiple sources including Centrelink)
  • Self-employed (e.g. incomplete tax returns but can provide alternative income documentation such as BAS statements)
  • Past credit impairment (e.g. defaults under $1,000 or defaults of any amount once registered over 24 months, discharged bankruptcy (one day)

Check out our Near Prime case studies for real life examples.

Common reasons why Near Prime borrowers come to Pepper Money

What makes Pepper Money special is our human approach to assessing applications. We assess every application on a case by case basis and do not use credit scoring to make our decisions. We apply a real-life approach to lending – if it makes sense, we’ll make it happen. Generally, we find that customers who fit a Near Prime profile are looking to: 

  • refinance or consolidate an unlimited number of debts
  • access cash out for business expansion 
  • increase their investment portfolio
3 things you need to know about Pepper Money's Near Prime products

Maximum LVRs
Full Doc: Up to 95% LVR for purchases and up to 90% LVR for all other purposes
Alt Doc: Up to 85% LVR for Alt Doc purchases and up to 80% LVR for all other purposes

Interest rates
Interest rates range from 5.29% (comparison rate 5.53%) - 7.30% (comparison rate 8.18%) p.a (as at 18th September 2018).  Interest rate depends on type of loan documentation and LVR. 

Length of time in product
On average, a borrower will refinance from a Pepper Near Prime loan to a Pepper Prime loan after 18 months. 

For full product specifications and features, download our product guide here

What do I do next? If you have a client you suspect may need a Near Prime solution, you can contact a Pepper Money BDM or run the scenario through the Pepper Product Selector Tool, or contact our dedicated Scenarios Team