A business owner who was looking to access cash for business expansion and to save fees under Pepper Money's Mortgage Risk Fee promotion running between 23 May 2016 - 16 September 2016)
- Age: 37 years old
- Occupation: Company Director operating a transport business for the last 12 years
- Income: Last 2 years taxable income is $89K and $159K respectively
- Assets: House valued at $814K
- Liabilities: Current home loan $370K and business loan $80K (secured against home)
- Credit impairment: Paid commercial default listed on CRAA for $64K registered just over 24 months ago
Jimmy needed $160K to purchase some new trucks to expand his business.
Jimmy did not have his most recent financials completed yet but he had told his broker that his net profit had increased substantially to $280K due to securing a large new contract.
Jimmy was able to qualify for the Pepper Money Near Prime (Alt Doc) product and was applicable for the 0.25% Mortgage Risk Fee discount (effective until 16 September 2016).
With a loan size of $610k at 75% LVR, Jimmy was able to save $1,525 in Mortgage Risk Fees.
- Pepper Money considers consolidation of Alt Doc and business debts on Pepper Money Alt Doc products.
- Pepper Money has no limit on cash out for acceptable purposes including purchasing property or vehicles.
- Jimmy was able to choose from 3 different options when providing income documentation - 6 months' business bank statements OR 6 months BAS OR his accountant could complete Pepper Money's accountant's letter.
*for scenarios received by 4:30pm AEST
These case studies are based on real-life examples and have been provided solely for educational purposes. The case studies are not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. Outcomes will vary depending on the applicant’s individual circumstances. All applications are subject to Pepper Money's normal credit assessment and loan suitability criteria. Terms, conditions, fees and charges apply. Pepper Group Limited, Australian Credit Licence Number 286655, is the servicer of loans made by Pepper Finance Corporation Ltd ACN 094 317 647.