Case Study - Michelle & Tony

Meet Michelle and Tony...

Image of Michelle & Tony

A young couple with two kids are struggling for space in their current 2 bedroom home.  They have purchased a block of land and are looking to construct a new 4 bedroom family house.

  • Age: Michelle is 32 and Tony is 35
  • Occupation: Both are PAYG, Tony earns $85k and Michelle earns $50k.
  • Assets: House valued at $600K
  • Liabilities: $362K
  • Credit Impairment: They have 2 Telco defaults under $1,000 from 12 months ago and a $10,000 credit card default from 2 years ago


After Michelle and Tony had their second child, Michelle decided to give up her job and stay at home for 2 years. Due to this their financial situation became hard to manage and unfortunately they defaulted on a credit card and a couple of telco debts.

Michelle made the decision to return to work and their financial situation has since improved.They now have available income and purchased a block of land to build a new 4 bedroom family home; and they also have a fixed build contract and council approval in place. However the banks have declined their recent application due to their credit report.



Michelle and Tony qualify for the Pepper Easy Full Doc Construction product which allows for construction up to 90% LVR. This product allows for:

  • Credit impairment
  • Self-employed Low doc applications
  • Discharged bankruptcy (1 day)
  • Part 9/10 Debt agreements

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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.