What is a non-conforming loan?

Non-conforming loan

A non-conforming home loan is simply a term used for home loans that don’t typically conform to the major banks' standard loan criteria. It is the opposite of what’s called a ‘prime’ home loan.

Non-conforming isn’t a commonly used term. But if you’ve ever been declined for a home loan, you may have been given this as an explanation by your lender or mortgage broker. You may also hear it referred to as a ‘specialist’ home loan product.

When you’re labelled as ‘non-conforming’, it’s understandable you may feel help might be hard to find. But not to worry. Pepper’s more flexible and holistic approach has helped provide non-conforming home loans to borrowers for over 10 years. And that’s meant helping borrowers just like you achieve home loan finance, all with their own circumstance, be it:

  • Self-employed
  • Recently started a business or a new job
  • Don’t have a perfect credit history
  • Been previously bankrupt
  • Have an ATO debt you need to payout
  • Have a solid income, but not much of a deposit
  • Have a deposit but it’s an inheritance or a gift
  • Work means you regularly change jobs, it looks like there’s no stability but it’s just the nature of the industry
  • You need to consolidate a few other debts such as personal loans, credit cards or business debt
  • You’re nearing retirement and the major lenders won’t have a bar of you
  • You’re a new Australian resident, and therefore can’t verify previous credit history.

You shouldn’t, however, confuse a non-conforming loan with a low documentation (low doc) loan.

Pepper simply doesn’t do low doc loans. That said, we do provide alternative documentation (Alt Doc) loans. As the name suggests, the paperwork you need to give us isn’t less than a standard loan, it’s just different. It’s an alternative, more flexible way of helping us to verify your income, rather than the usual 2 year’s tax returns and PAYG statements.

You can apply for a home loan with Pepper whether you have full documentation or if you wish to provide alternative documentation. 

If you’d like to find out more, just talk to one of our Lending Specialists on 13 73 77 or learn more about our home loan options in the market.

Pepper has helped thousands of borrowers just like you. Read their stories

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