Our variable rate home loan option

This is a calculation based on your total income, expenses, current credit exposure and your credit history. You can estimate your borrowing capacity in under 5 minutes using our home loan calculator - it’s quick, easy and won’t impact your credit score.

Different lenders charge different upfront and ongoing monthly fees, which should be factored in when saving your deposit. Some of these can be added to your loan balance, while others will need to be paid upfront – fees include establishments or application fees, and risk or mortgage insurance fees. Other smaller fees will be added to your balance each month.

You can view a summary of our home loan fees.

You’ll also need to pay solicitor fees along with local and state government taxes and levies. These can’t be added to your house loan balance and are usually paid upon settlement.

A few things in life are certain – and one of them is taxes. While stamp duty varies in each state or territory, it generally needs to be paid upfront and can’t be added to your loan balance. 

However, there are different schemes and grants in each state to support first home buyers – so it’s worthwhile checking if you qualify for any support: First Home Owner Grant

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

The interest rates for home loans tend to vary for each individual, depending on a range of factors: 

• The amount you need to borrow against the property value; known as the Loan-to-Value Ratio (LVR) 
• The size of your deposit  
• Your income 
• Credit history 
• Any assets you own 
• Any liabilities or credit obligations
• Chosen repayment type – paying off interest-only, or principal and interest 
• The purpose of the loan – if it’s for an owner-occupier or investment property

You can find out what interest rate you might be eligible for in under five minutes using our home loan interest rate calculator. It’s quick, easy and won’t impact your credit score.

To apply for a home loan, you’ll need to provide documents to verify your identity, employment, and financial position. 

To prove your identity:

• Australian passport

or

• International passport showing a valid Australian permanent residency visa

To prove your deposit, you’ll need to provide the following (depending on where the funds originated from):

• 3 months’ bank statements demonstrating genuine savings 
• Share certificate or dividend statement for any public listed company
• Gift letters for non-repayable gifts from family
• Contract of sale or settlement statement for proceeds of a sale of another property

To prove your income:

For PAYG applicants you’ll need two recent payslips plus one of the following: 

• Most recent group certificate  
• Most recent notice of assessment  
• Current letter of employment 
• Bank statements - to confirm your last 3 months of salary 

For Self-Employed applicants, the required documents vary depending on how long you’ve been self-employed.

At least 6 months:

You’ll need to be able to show at least 6 months of GST and ABN registration and provide declaration of financial position, as well as one of the following: 6 months’ business bank statements, or 6 months’ BAS or Pepper Money accountant’s letter (not accepted if ABN registered for < 12 months, on loan sizes > $1.5m or on Plus).

Over 2 years:

Last 2 years’ tax returns and notices of assessments, or

Last 2 years’ financial statements executed by a registered tax agent or accountant

We give you the flexibility to choose between a fixed, a variable rate, or both, on your Pepper Money home loan.

Fixed interest rate

 A fixed interest rate home loan simply means that you ‘fix’ the interest rate at whatever the rate is at the time of settlement for a set term (2, 3, 5, 7 or 10 years). That means your interest rate and payments will remain the same over that period, regardless of any increases or decreases to interest rate changes.

A Pepper Money fixed rate home loan may suit borrowers looking for:

• The certainty of fixed repayments
• Ability to break fixed rate with no break cost
• Unlimited additional repayments allowed without penalty (no redraw available)
• Available for purchases, refinances, debt consolidation or cash out for investment or personal purposes

Variable interest rate 

 A variable rate loan is a loan with interest rates that are subject to change throughout the term of your loan. This may be due to changes to the official cash rate set by the Reserve Bank of Australia (RBA) or if your lender changes the interest rate.

Variable interest rates may suit borrowers looking for:

• Flexibility with repayment frequency and free online redraw (manual redraw fee is $50)
• Options to reduce interest with a fully transactional 100% offset account (monthly fee applies)
• Available for purchases, refinances, debt consolidation or cash out for investment or personal purposes

For more information, you can talk with one of our Lending Specialists on 137 377, they’re there to help. 

You can choose a Pepper Money split home loan. You can choose to have a portion of your loan with a fixed interest rate for a chosen loan term and the remainder with a variable interest rate. This can give you the flexibility of a variable interest rate loan and the repayment certainty of a fixed interest rate loan. Here’s how it works:

• Choose a fixed rate term and know what the repayments and interest rate will be for that period
• Enjoy the features of a variable interest rate loan, such as a free online redraw facility and a fully transactional 100% offset account (monthly fee applies to offset account and manual redraw requests)