Home Loan FAQs

Home Loan FAQs


Buying a property is a big decision and at Pepper we understand that every individual situation is different, bringing with it a range of questions. That’s why we’ve gathered the most frequently asked questions to help make your home loan journey a lot easier.

Getting started with Pepper Money home loans

To get an estimate of your borrowing capacity, simply answer a few questions around your current situation using our handy online calculator.

At Pepper Money we can finance home purchases of up to 95% LVR (subject to the loan meeting our eligibility criteria), which means you can start to look at buying once you have saved around 5% of the purchase price. 

However, we recommend at least 10% as an ideal target as it is important to factor in the additional costs you will need to cover when you are taking out a loan. 

There are fees associated with every home loan application which should be factored on top of your deposit. For example, establishment and ongoing administration of your loan account, legal fees, stamp duty and mortgage insurance fees.

Get in touch with one of our Lending Specialists on 13 73 77 to understand the full list of fees on a Pepper Money home loan and when these might apply. Alternatively you can view a high level summary of our home loan fees here

At Pepper Money, we offer a range of variable interest rates depending on your individual circumstances. A decision on your rate will be based on a range of different factors including;

  • The amount you need to borrow against the property value; known as the Loan-to-Value Ratio (LVR)
  • The size of your deposit
  • Your source of income
  • Credit history
  • Assets and liabilities 
  • And whether the loan is to purchase an owner-occupied property or an investment property. 

Click here to learn more about our home loan products, or to get an indicative interest rate speak to one of our Lending Specialists on 13 73 77

Pepper Money allows multiple credit defaults. Whether they are more recent defaults or those listed years ago, we have a range of products that can cater to your situation.

When we evaluate your credit history, we focus on why the defaults happened rather than the fact you defaulted. We also look at your current means of income, ability to repay the loan, deposit amount and the location of the property.

Learn more about Pepper Money Home Loans for credit impaired borrowers here.

At Pepper Money, there are a few solutions available for borrowers who have been officially discharged by one day or entered a debt agreement. In some cases, we may be able to assist you in finalising a debt agreement as part of the debt consolidation feature that’s part of many of our home loans. Learn more about Pepper Money Home Loans for debt consolidation here.

There is no limit to the number of debts you can consolidate as long as the outcome of the consolidation puts you in a better financial position. We can look to refinance different types of debt including credit cards, personal loans, car loans, private finance, tax and other business debts.

You will need to have documents supporting your current financial position such as recent bank statements, payslips or other proof of income, personal identification and a snapshot of your current asset and liability position.

For PAYG applicants we require two current payslips plus one of the following:

  • Most recent group certificate
  • Most recent tax return / taxation notice
  • Current letter of employment
  • Bank statements – to confirm last 3 months salary credits

For Self-Employed applications we need your last two years Financial Statements and Certified Tax Returns + Tax Assessment Notice. If you are self-employed and unable to provide these documentation, you may still qualify for an alternative documentation (alt doc) loan. For more details click here

There are two types of income documentation options available for self-employed borrowers; full documentation (Full Doc) and alternative documentation (Alt Doc). Note that we consider self-employed borrowers who have been in business for at least 6 months.

Full Doc Alt Doc
  • Two years Financial Statements and Certified Tax Returns + Tax Assessment Notice AND
  • A completed ‘Declaration of Financial Position’ plus any one of the following (or two for Pepper Essential home loan): 6 months Business Bank Statements, 6 months Business Activity Statements (BAS) or Pepper Accountant’s Letter (only available to borrowers who have been self-employed for a minimum of 12 months).
  • Evidence of ABN registration for 6, 12 or 24 months, depending on the loan type
  • Evidence of GST registration for 6 or 12 months, depending on the loan type
  • A completed ‘Declaration of Financial Position’ plus any one of the following: 6 months Business Bank Statements, 6 months Business Activity Statements (BAS) or Pepper Accountant’s Letter 

We also consider a range of income types for the self-employed including: 

  • Net profit before tax
  • Wages/salaries
  • Dividends and trust distributions
  • Addbacks such as depreciation and non-recurring interest charges
  • Superannuation contribution in excess of 9%

Note: All applications are subject to thorough credit assessment and loan suitability criteria. If you have any questions, give us a call on 13 73 77.

Pepper Money consider borrowers with alternative sources of incomes provided it forms a part of the overall household income.

Some of the income sources we accept are:

  • Carers allowance
  • Disability support
  • Long term pensions (war/widow’s pension)
  • Family tax benefits (Part A and B)
  • Worker’s compensation
  • Centrelink income
  • Child support
  • Income protection payments
  • Bonus/ Commission/ Overtime
  • 80% rental income
  • Car allowance/ Company vehicle

While Pepper Money can submit the First Home Owners Grant (FHOG) on your behalf, we generally cannot use it as a deposit towards your home purchase as the funds are often not available on the settlement date. For any questions related to your specific situation please give us a call on 13 73 77.

Stamp Duty is usually required as part of any home purchase, although the amount you pay depends on the state in which you are buying a home. Different states have different stamp duty regulations, and its generally based on the purchase price of the property.

To get an estimate of how much stamp duty you might need to pay on a purchased property in each state in Australia, try our Stamp Duty Calculator.

If you’d like more information on this, speak to one of our Lending Specialists on 13 73 77 Monday to Friday 8:00am to 6:00pm.

Generally, an application with a Loan-to-Value Ratio (LVR) of 80% or more (meaning you have a deposit of less than 20%) may result in you having to pay Lender’s Mortgage Insurance (LMI). LMI is a third-party insurance premium payable by you as the borrower, to protect the lender against the potential loss that may be incurred if you’re unable to repay your home loan.

At Pepper Money, we charge a similar risk fee called a Lender Protection Fee (LPF). Learn more about it here.

Yes. Pepper Money offers construction loans for borrowers looking to build a home, complete renovations or rebuild. To learn more about our Construction Loans product, give us a call on 13 73 77.

Only Australian and permanent residents who hold a valid VISA to stay in Australia indefinitely, will be eligible for a Pepper Money home loan.

In order for you to include your partner's income, a joint application will have to be submitted. For more information please call us on 13 73 77 and a Lending Specialist can talk through your options.

Pepper Money don't accept guarantor on any of our home loan products.

Applying for a Pepper Money home loan

Applying for a Pepper home loan is easy. All you have to do is contact one of our Lending Specialists on 13 73 77 from Monday to Friday, between 8:00am and 6:00pm. They will talk with you and guide you through the process.

Have your documents ready beforehand to help get the process moving even more quickly! To understand the full process and what’s required at every stage click here.

You can also get started by getting an estimate of your borrowing power here in just a matter of minutes, or submit an online enquiry and we’ll call you back to discuss your home loan options.

You can choose to apply for a pre-approval by calling one of our Lending Specialists on 13 73 77. This is typically obtained so you can start house hunting and bid with confidence on auction day when the right property comes along. Note that pre-approval is conditional and does not guarantee that your loan is approved in full.

You can apply for a conditional approval by calling one of our Lending Specialists on 13 73 77. During the process, we will need to undertake a valuation of the property to validate the estimated value or purchase price of the property. If all of the conditions have been met and the valuation report meets our lending criteria, it will progress to unconditional approval.

Yes. We have around 15,000 accredited brokers across the country who can help find the best loan solution to suit your needs. To find an MFAA accredited broker in your area, click here

We need those documents from you to help us accurately assess your financial situation and to make sure you’re able to afford repayments on the home loan. To find out how we store and handle your personal documents please read through our privacy policy here.

Your Pepper Money Home Loan Journey can take up to six weeks – this is the typical timeframe for a home purchase, however the process may be quicker if all the necessary documentation is provided sooner. 

Delays in decisions are often caused by incorrect or missing documentation. 

To learn more about Pepper Money Home Loan application process, click here or for more information speak to a Lending Specialists on 13 73 77.

If you’d like to check the status of your application, please give us a call on 13 73 77.

We treat each loan application on its own merits, looking to understand the customer’s situation including their credit history, and then apply risk-based pricing to each loan. Sometimes this results in a higher interest rate for some of our customers.

Please do not hesitate to give us a call on 13 73 77 if you require further clarification.

Yes, it is. A valuation is an important step to finalising your loan and this must be conducted by one of our accredited panel of valuers. We will confirm if the property is suitable as security for the mortgage within 2 working days from the date of inspection.

At Pepper Money, the valuation fee is often included as part of the establishment fee or charged upfront if the cost of the valuation is substantial.

To prevent cases of fraud, Australian law requires all people who borrow money for a property to have their identity verified face to face. This is to ensure that the borrower is who he or she claims to be. At Pepper, we use a service called ZipID where a representative can visit you at your home or work to complete this check, which should only take about 5 minutes.

If all of the conditions have been met, you will receive your loan agreement which outlines the legal terms and conditions of your new loan. To accept the offer, you will need to return the signed document to us. Be sure to read each page carefully and initial in the correct places to prevent a significant delay in the process of getting your home loan.

The funds along with a welcome letter with details of your new loan will be released on the agreed settlement date.

Have more questions? Whether you're looking to refinance, buy your first home or get an investment property, our friendly Lending Specialists are on hand to help on 13 73 77. Or if you'd like to start by finding out how much you can possibly borrow in just a few minutes, try our Borrowing Power Calculator

Existing customers:
Looking for help with your Pepper Money home loan? View our help centre articles here or call our customer service team on 1300 650 931 Monday to Friday, 8am to 6pm. 

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