Pepper Money Fixed Interest Rate Home Loan Fact Sheet

Pepper Money fixed rate fact sheet


Pepper Money's Fixed rate home loan option gives customers the certainty of knowing their repayments and interest rate for a chosen fixed term. Our fixed interest rates also give the flexibility that if life changes there are no break cost fees.


1. What fixed periods can I choose from?

  • 2 years
  • 3 years
  • 5 years
  • 7 years
  • 10 years

2. Can I make additional repayments into my fixed rate loan?

Yes, you can make unlimited additional repayments into your fixed rate home loan, however there is no redraw during the fixed interest rate period.

3. Can I redraw additional payments I have made to my fixed rate home loan?

No, redraw is not available for any additional repayment you have made into your fixed rate home loan option during the fixed interest rate period. If you require access to your funds consider other options such as a variable interest rate home loan which allows redraw and/or an offset sub-account (monthly fees apply).

4. Can I apply for a fixed rate home loan if I have poor credit history?

Yes, we offer fixed rate home loans for customers who have or have previously had issues on their credit report.

5. If I want to sell my home or break my fixed rate what will happen?

Pepper Money’s fixed rate option has no break fees, which means you won’t incur fees for breaking your fixed rate period. This is an offering we provide customers to allow for real life changes.

6. Is there a rate lock option for a fixed rate home loan?

Yes, new fixed interest rate home loan applications will have the ability to lock in the applicable fixed interest rate at the time of final approval for 90 days. The fixed rate applicable will be the lower of the interest rate locked in at the time of final approval or by exception if we receive your rate lock request after final approval) or the actual fixed rate at the time of settlement. By locking in a fixed rate, it ensures that if rates increase during the fixed rate lock period the higher interest rate will not be applied

The rate lock period lasts for 90 days. If the rate lock expires, and no action is taken, then the fixed interest rate on the day of loan settlement will apply. You can request a new rate lock at an additional cost, which will lock in the fixed interest rate, for a new 90 day period, from the date of your new rate lock request.
A non-refundable once-off fee will apply for Fixed Rate Lock requests which will be charged at settlement. You can choose to have the rate lock fee capitalised into the loan or deducted at settlement. The rate lock fee will still be charged even if fixed interest rates decrease.

If the rate lock fee is capitalised to the loan this will increase the loan to value ratio (LVR), and you will pay interest on the rate lock fee.

7. What fee is charged to lock in a fixed interest rate?

To lock in a fixed rate, there is a minimum fee of $750 per home loan application. If your fixed home loan balance is greater than $500,000, the rate lock fee will be 0.15% of the fixed rate loan balance at settlement. For example, for a loan amount of $600,000 the rate lock fee will be $600,000 x 0.15% = $900.

The rate lock fee is only payable once per application. The rate lock fee will still be charged even if fixed rates have decreased, after the rate lock request has been approved.

Fixed Interest Rate Loan Balance Rate Lock Fee
Fixed rate loan balances rate locked ≤ $500,000 $750 per home loan application
Fixed rate loan balances rate locked > $500,000 0.15% of fixed rate loan balance at settlement


8. Why are your fixed rates higher than the banks?

As we are not a bank, we don’t offer deposit products, so our funding comes from alternative sources. The interest rate we are charged for these funds is slightly higher than what a bank might charge, so we pass this additional cost on.

9. Can I top up / take out an additional advance on my home loan if I have a fixed rate home loan option?

Yes, however a new split loan needs to be created (provided you have <3 splits currently in operation). Applications are subject to credit assessment and loan eligibility criteria. Minimum and maximum additional advance amounts apply.

10. Can I do a substitution of security if I have fixed rate home loan?

Security substitution can be accepted for fixed interest rate loans provided the new security is at least like for like with the existing security. For example, a house substituted for a house or a unit substituted for a unit, that is in the same security risk category (eligibility criteria apply)

11. Can I have a split home loan, with part fixed and part variable?

Loans may have up to 4 splits with any combination of Variable and Fixed Interest Rates. This gives customers the ability to fix a portion of their interest rate for repayment certainty, while still having a variable portion that allows redraw and offset-sub account facilities (monthly fees apply) A customer can have more than one fixed interest rate split.

12. Can I have an interest offset sub-account linked to my fixed rate home loan?

An offset sub-account facility cannot be linked to a fixed rate home loan . However, our variable loan options do allow an offset facility, so you may want to consider a Fixed / Variable interest rate loan split with the offset sub-account facility against the variable interest rate portion of the loan. Note that if a customer requests an offset-sub account facility then this will be one of the four available loan splits (monthly fees apply).

13. If I have a fixed rate home loan, can I make Interest Only repayments?

Fixed loans can be undertaken on an Interest Only basis. Fixed rates and interest only periods must be equal and are only offered on the 2, 3 and 5 year fixed rate terms, as Interest Only periods have a maximum of 5 years.

14. Can I link a visa debit card to my fixed rate home loan?

Visa debit card access will not be available against Fixed Loans as no redraw or offset facility is available during the fixed interest rate period. Customers seeking card access to additional repayments could consider the option of a split Fixed / Variable home loan with card access as an option on the offset sub-account facility attached to the variable loan (monthly fees apply).

15. What will happen at the end of my fixed interest rate term?

At the end of the fixed rate term your fixed rate loan will convert to a variable rate unless you refix your home loan. If you have a split fixed interest rate and variable interest rate home loan, the fixed interest rate split will convert to a variable interest rate. If you do not have a variable split, the interest rate will revert to the applicable variable interest rate on the date the fixed interest rate term expires.

16. I am an existing Pepper customer; can I switch to a fixed interest rate home loan?

Existing customers can switch to a fixed rate, however, certain limitations apply.
Limitations include:

  • Customers are unable to switch or take out a portion of their home as fixed rate, if the home loan was settled in the last 6 months.
  • Customers in arrears are unable to switch to a fixed interest rate option.

Terms and conditions, fees and charges, credit assessment and eligibility criteria apply.

17. On a Fixed interest rate home loan can I choose weekly, fortnightly, or monthly repayments?

If you have a Fixed interest Rate Principal and Interest loan you can choose to make repayments; weekly, fortnightly, or monthly.

For Fixed interest Rate Interest Only loans you must make monthly repayments.


Important Information

  • Information and interest rates are correct as at 23 June 2022 and subject to change at any time. Offers and promotions may be continued, withdrawn, or changed at any time without notice.
  • Information provided is factual information only,and is 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 licenced financial or ta adviser.
  • All applications are subject to credit assessment, loan eligibility criteria and lending limits. Terms, conditions, fees and charges apply. The actual interest rate will depend on the borrower’s circumstances and the information verified during the loan application assessment.
  • Visa Debit card is issued by Indue Limited ABN 97 087 822 464 and distributed by Pepper Finance Corporation Limited ACN 094 317 647 and/or through Pepper Money accredited mortgage brokers. Refer to the Conditions of Use and Target Market Determination (TMD) located here.

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