Please see our list of frequently asked questions for home loan and asset finance customers, designed to help you navigate the financial assistance options that may be available to you.
FAQs about financial difficulty for home loan customers
Facing hard times and becoming aware of a changing situation or increasing difficulty is the first important step that you can take.
Please take a moment to look at the existing features of your loan, so you know what next steps you can take if your circumstances change in the future.
If your circumstances do change and you are unable to meet your loan repayments or pay for essentials such as groceries and bills, please apply for assistance here here or contact us on 1300 650 931 to discuss your situation and the options that might be available for you
If you notify us of your changing circumstances, we aim to work with you side by side to help you understand your options.
To do this, we will need to understand your unique situation to be able to consider your hardship request and discuss your options.
This may include asking you:
- The reasons why you are in financial hardship
- An indication of how and when your situation will improve.
- Whether you can make any repayments to your loan and over what period
- To provide a 'statement of financial position', which means information that sets out your income and expenses, as well as relevant supporting documents, like bank statements.
If you or another account holder are still employed and have reliable, ongoing sources of income, you should try to make your loan repayments as you are reasonably able to. However, given your financial situation will be changing and if you are unable to meet your loan payments at that time, please contact us to discuss options.
In this situation, we will ask you to confirm a repayment amount that you can comfortably repay during the temporary reduction in your monthly repayments. You can apply for a reduction to your monthly repayments here or by contacting us on 1300 650 931 to discuss your situation and the options which may be available to you.
If your tenant is a day or two late with rent, your real estate agent or property manager should be helping you throughout this process.
Depending on the circumstances, if you find that due to a decrease in your rental income you are unable to meet your home loan repayments please apply for financial assistance here, or contact us on 1300 650 931 to discuss your situation and the options which may be available to you.
Typically, a ‘payment holiday’ is a temporary suspension to your loan repayments because of financial stress.
At Pepper Money, you can apply to us for either a reduction to your loan repayment amount for a set period or a repayment break which involves putting a pause on making scheduled repayments on your home loan for a set period of time.
If you have applied for assistance with Pepper Money and we agree to pause your repayments, your scheduled repayments will likely increase once the repayment break has ended, to make sure that your loan is still repaid within the remaining loan term.
Please take the time to read about the hardship process and repayment holiday terms here in our Fact Sheet.
If your income has been reduced temporarily, such as one spouse losing a job and leaving you with only one income, you may be able to apply for a temporary reduction in your scheduled repayments.
In this situation, we will ask you to confirm a repayment amount that you can comfortably repay during the temporary reduction in your scheduled repayments. You can apply for a reduction to your scheduled repayments here.
If you have been “stood down” and are experiencing any of the situations below, please apply for assistance here:
- You are unable to make your loan repayments
- You are finding it difficult to make your loan repayments
- Your financial situation will be changing, and you may be unable to meet your loan repayments at that time
- You have received a default notice from Pepper or another lender.
Customers who receive financial assistance from Pepper Money may have their credit history negatively impacted. To learn more about your credit health, visit CreditSmart.org.au.
If you are experiencing financial difficulty right now as a result of losing your job, we encourage you to apply for assistance here or contact us on 1300 650 931 to discuss your situation and the options which may be available to you.
You may have the option of varying all or part of your loan account from principal & interest repayments to interest-only repayments for a specified period, as agreed with us.
This will reduce your repayments, as you don’t have to pay the principal of the loan for a specified period, only the interest portion.
It’s important to understand that the principal amount of your account isn’t being paid off during this period, so your monthly repayments will increase once your loan account converts back to principal and interest, in order to ensure that the remaining principal and interest balance is paid off over the remaining loan term.
If you have not reduced your direct debit amount in some time, you may be paying more than you are required to.
You may also choose to reduce your loan repayment amount to the minimum contractual repayment amount, including any monthly account keeping fees. To adjust your repayments, please email us with your request or contact us on 1300 650 931.
If you would like to speak to us to request a reduction to the interest rate on your loan account, please contact us on 1300 650 931.
Insurance you have financed as part of your loan may provide cover for loss of income and/or loss of employment. You may also have separate insurance policies (such as income protection/salary continuance insurance) which may provide coverage for loss of income and/or loss of employment. Contact your insurer to find out if you are able to make a claim due to your current situation.
For customers who are currently under financial hardship arrangements with Pepper Money, we will suspend the repossession of your house or financed assets with us, until further notice.
Your repayments will be paused during the repayment break; however, it is important to note that interest will continue to accrue and will be added to your loan balance. At the end of the repayment holiday, your loan repayments will likely increase to ensure your loan is repaid within the original loan term. We will contact you prior to the end of the repayment break to discuss your circumstances.
Calculate the impacts of deferring your home loan repayments using our Deferral Calculator here.
30 days before the end of your repayment holiday, Pepper Money will contact you to let you know that this arrangement is coming to an end and that your loan repayments will soon recommence. Learn more about the process here.
You will continue to receive statements and other general communications from Pepper if financial assistance is offered to you.
Additional FAQs specific to asset finance customers (such as cars, caravans, bikes and commercial equipment)
There are several options available depending on your situation. You may be able to apply to us to:
- extend the term of your loan contract, which effectively reduces the repayment amount
- reduce the repayments due within a specific period
- put your loan repayments temporarily on hold for a set period of time
The interest on your loan account will continue to accrue during the period of assistance and will be added onto your loan balance.
Any deferred or reduced repayment amounts will be added to your loan balance and the repayments will be adjusted at the end of the assistance period to ensure the loan is repaid within the remaining loan term.
If you cannot pay the balloon/residual payment in full, the total amount may be able to be broken down into smaller manageable repayments over an extended term.
To find out what your options are, please call us on 1300 308 738. Credit eligibility criteria, terms and conditions, fees and charges apply.
To find the current balance of your loan account, you can request a loan statement be sent to you by calling us on 1300 308 738.
To assist with your request, please include any two of the following account details in your email request:
- Loan Contract Number
- Customer Name(s)
- Vehicle make and model
- Rego Number
- VIN Number
You can change the frequency of your payments at any time by contacting our Customer Service team on 1300 308 738.
Pepper Money provides all customers the option to pay out their loan early. Simply call us on 1300 308 738 to request a “Pay out Letter”. An early termination fee may apply.
If you wish to change the existing payment method, please call us on 1300 308 738, between 8:00am and 6:00pm (AEST) Monday to Friday.
Still have questions? Our friendly customer service team are on hand to help, just call 1300 650 931 between 8:00am and 5:30pm (AEST/AEDT) Monday to Friday.