With almost a quarter of a million (216k) properties under construction nationally as at June 2017, construction builds are a booming industry and borrowers are looking to lenders for a finance solution to build their dream homes.
In response to increasing demand from the broker market, effective 14 November 2017, Pepper Money has expanded our construction loan offering into the Pepper Essential (prime) product and further enhanced the construction options available under the Pepper Easy (near prime) range.
Construction Loan Feature Highlights
Pepper Essential Construction Loans (Prime) – New construction loan range
- Suitable for clean credit clients who want to build up to 2 properties on 1 title including townhouses and duplexes
- Owner Occupied and Investment purposes allowed
- Up to 95% LVRs (inclusive of fees) on Full Doc
- Alt Doc options available up to 80% LVR (inclusive of fees)
- Borrow up to $1.5m (up to 85% LVR for 2 properties)
Pepper Easy Construction Loans (Near Prime) – Improved construction loan range
- Investment purpose now accepted on Pepper Easy Construction PLUS loans
- Max Loan Amount increased from $850k to $1.25m (1 property) or $1.5m (2 properties)
- Construction of up to 2 properties on 1 title including townhouses and duplexes now allowed
- Max LVR increased from 90% to 95% (inclusive of fees)
- Alt Doc options available up to 85% LVR (inclusive of fees)
For more information, login to download the Product Guide.
Why consider Pepper Money for Construction Loans
Pepper Money’s construction loan range offers brokers a competitive offering with:
- No third-party Lender’s Mortgage Insurance (LMI) approval required
- No credit scoring.
- Manual assessment in line with Pepper’s unique cascading underwriting process so borrowers will automatically have their application reassessed as ‘near prime’ should it fall outside Pepper’s ‘prime’ policy.