Getting a home loan with bad credit

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 the above documentation, you may still qualify for an alternative documentation (alt doc) loan such as, a completed 'Self-Employed Declaration of Financial Position'; plus one of the following options:

• 6 months Business Bank Statements
• 6 months Business Activity Statements (BAS) or 
• Pepper Accountant’s Letter (only available for use on select products).

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 working towards 10% as an ideal target.

The reason for the suggested 10% target is that when saving for your deposit it is really important to factor the additional costs you will need to cover when you are taking out a loan, including:

• Establishment and risk fees such as mortgage insurance (generally these are up to 2% of the amount being borrowed)
• Conveyancing and legal costs
• Government fees including stamp duty (amounts vary based on State and other factors)
• Title search and registration fees
• Pest and building inspections
• Home building insurance prior to settlement

If you’re interested in seeing how much you may be able to borrow for a home loan you can check out our calculator here

Rates refers to the interest rate, being the amount of interest you pay on your loan amount. Fees are the fees and charges that you pay for establishment and ongoing administration of your loan account.

The interest rate you will qualify for is 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) and the size of your deposit, whether the loan is to purchase an owner-occupied property or investment property, or if you have had any past credit issues.

Click here to learn more about our home loan product options. At Pepper Money we offer a range of interest rates, depending on your individual circumstances. To get an indicative interest rate, please call 13 73 77 and speak with one of our lending specialists.

Your Pepper Money Home Loan Journey can take up to six weeks – this is the typical timeframe for a home purchase, however, we can help turn this around in closer to three weeks if you are ready to go with all the necessary supporting documentation.

To learn more about Pepper Money Home Loan application process, click here.

Pepper is Australia's number 1 alternative lender, and we live our mission: to help people succeed.

We specialise in working on each individual application so we can fully understand your real life situation and help find a suitable solution.

Since 2001, we’ve been helping over 200,000 Australians who don’t tick all the traditional boxes for home loans – and we also provide personal loans as well as professional equipment and car loans. Learn more about us here.