Fixed Interest Rate Home Loan Option

How much you can borrow depends on your total income, living expenses, liabilities, and your credit history. You could estimate your borrowing capacity in under 5 minutes using our home loan calculator - it’s quick, easy and won’t impact your credit score.

See how much I can borrow

While a high credit score might help you get a rock-bottom interest rate, it may still be possible to apply for a home loan with a less-than-perfect credit score. While some banks often prefer to lend to those with a perfect credit history and high credit score, at Pepper Money, we take a real life approach to lending and look beyond just your credit score to see what we can do to help. .

Talk to a lending specialist about your situation. We’re here to help.

On some of our loans, we offer finance up to 95% of the purchase price, meaning you can start to look at buying a house once you've saved at least 5% of the purchase price. The deposit amount may also depend on the property and area you’re looking at purchasing.

Remember, there can be extra costs involved when buying a house. You’ll need to cover government and legal fees, which can’t be added to your home loan balance.

Your Pepper Money Home Loan Journey can take up to six weeks – this is the typical timeframe for a home purchase, however the process may be quicker if all the necessary documentation is provided sooner. 

Delays in decisions are often caused by incorrect or missing documentation. 

To learn more about Pepper Money Home Loan application process, click here or for more information speak to a Lending Specialists on 137 377.

The interest rate offered, and fees and charges will depend on our assessment of a number of factors at the time of application including:

• The size of your deposit
• Nature of the security property
• Loan to value ratio (LVR)
• 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

The risk loading will apply for the loan term.

To get an indicative interest rate speak you can start by using our online borrowing power calculator, or speak to one of our Lending Specialists on 137 377. 

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. Y You can request a new rate lock which will lock in the fixed interest rate for a new 90-day period from the date of the new rate lock request. The applicable rate lock fee will apply to this 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.

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)

We’re one of Australia's leading non-bank lenders! 

We were established in 2000 to help Australians achieve their financial dreams through providing flexible financial solutions that factor in the ups and downs of real life. Since then, we’ve become one of the largest, award-winning non-bank lenders in Australia and New Zealand.