Home Loan Frequently Asked Questions  

We've gathered the most frequently asked questions to help make your home loan journey a lot easier.

Can't find what you're looking for? Give us a call on 137 377

Getting started with Pepper Money home loans

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

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.

Certain Pepper Money fees can be added to your loan balance, while others will need to be paid upfront – including establishment or application fees, and risk or mortgage insurance fees. Other smaller fees (like fees for an offset sub-account) will be added to your loan each month.  

You can view a summary of our home loan fees here  

You’ll also need to pay solicitor fees along with local and state government taxes and levies. These can’t be added to your loan balance and are usually paid upon settlement. 

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

Life isn’t always smooth sailing. That’s why whether it’s a recent credit default, bankruptcy, or debt agreement, we still might be able to help with a Pepper Money home loan. When we evaluate your credit history, we focus on why the defaults happened rather than the fact that you defaulted. We also look at your current income, ability to repay the loan, your deposit, objectives and requirements and the location of the property you’re looking to purchase.

Learn more about home loans for credit impaired borrowers here.

At Pepper Money, there are a few solutions available for borrowers who have been officially discharged by one day or entered a debt agreement. In some cases, we may be able to assist you in finalising a debt agreement as part of the debt consolidation feature that’s part of many of our home loans. Learn more about Pepper Money Home Loans for debt consolidation here.

There is no limit to the number of debts you can consolidate as long as the outcome of the consolidation puts you in a better financial position. We can look to refinance different types of debt including credit cards, personal loans, car loans, private finance, tax and other business debts.

You will need to have documents supporting your current financial position such as recent bank statements, payslips or other proof of income, personal identification and a snapshot of your current asset and liability position.

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 Tax Returns, two years Tax Assessment Notice and & last 1 month’s business bank statements. If you are self-employed and unable to provide this documents, you may still qualify for an alternative documentation (alt doc) loan. For more details click here

There are two types of income documentation options available for self-employed borrowers; full documentation (Full Doc) and alternative documentation (Alt Doc)

Full Doc Alt Doc
  • Two years tax returns
  • Two years tax assessment notices AND
  • Last 1 month’s business bank statements
  • Evidence of ABN registration for 6 months
  • Evidence of GST registration for 6 months
  • Declaration of financial position plus one of the following: 6 months business bank statements (inclusive of the last 1 month), 6 months business activity statements (BAS) or Pepper Money accountant’s letter

We also consider a range of income types for the self-employed including: 

  • Net profit before tax
  • Director wages/salaries
  • Addback of Depreciation
  • Addback of Interest on debts being refinanced
  • Addback of Superannuation contribution in excess of 9.5%
  • Interest & Dividend income

Note: All applications are subject to thorough credit assessment and loan suitability criteria. If you have any questions, give us a call on 13 73 77.

Pepper Money consider borrowers with alternative sources of incomes provided it forms a part of the overall household income.

Some of the income sources we accept are:

  • Carers allowance
  • Disability support
  • Long term pensions (war/widow’s pension)
  • Family tax benefits (Part A and B)
  • Worker’s compensation
  • Centrelink income
  • Child support
  • Income protection payments
  • Bonus/ Commission/ Overtime
  • 80% rental income
  • Car allowance/ Company vehicle

While Pepper Money can submit the First Home Owners Grant (FHOG) on your behalf, we generally cannot use it as a deposit towards your home purchase as the funds are often not available on the settlement date. For any questions related to your specific situation please give us a call on 137 377.

Stamp Duty is usually required as part of any home purchase, although the amount you pay depends on the state in which you are buying a home. Different states have different stamp duty regulations, and its generally based on the purchase price of the property.

To get an estimate of how much stamp duty you might need to pay on a purchased property in each state in Australia, try our Stamp Duty Calculator.

If you’d like more information on this, speak to one of our Lending Specialists on 137 377 Monday to Friday 8:00am to 6:00pm.

Generally, an application with a Loan-to-Value Ratio (LVR) of 80% or more (meaning you have a deposit of less than 20%) may result in you having to pay Lender’s Mortgage Insurance (LMI). LMI is a third-party insurance premium payable by you as the borrower, to protect the lender against the potential loss that may be incurred if you’re unable to repay your home loan.

In the current environment, some of our regular home loan options such as construction loans are not available at this time. If you would like to discuss your situation to see if we can help, give us a call on 137 377.

Only Australian citizens and permanent residents who hold a valid VISA to stay in Australia indefinitely, will be eligible for a Pepper Money home loan.

In order for you to include your partner's income, a joint application will have to be submitted. For more information please call us on 137 377 and a Lending Specialist can talk through your options.

Pepper Money don't accept guarantors on any of our home loan products.

The total amount of interest that is paid on your mortgage is determined by your loan size, duration of the loan and the interest rate charged. Interest is usually calculated daily on your outstanding loan balance, then collected when you make a repayment.

As the interest rate is key to the total amount of interest payable over your loan, we’ve made it easy to get an indicative interest rate from Pepper Money online. We’ll firstly ask you to answer a few questions to determine how much you could borrow. Then we’ll ask a few more personal questions to access your credit file and provide you with an indicative interest rate.

Let’s get started

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.

Loan to Value Ratio, also known as LVR, is the loan size in relation to the property’s value. The size of the deposit plays a key role in determining the LVR, as the larger your deposit, the lower your LVR will be. Your LVR can impact interest rates and products that will be available to you, and it can determine whether you’ll need to pay a lender protection fee (LPF), lenders' mortgage insurance (LMI) or other risk fees. The value of the property will usually be confirmed by a valuation.

To calculate your LVR, divide the amount you need to borrow (e.g. $400,000) by the value of the property (e.g. $500,000) and multiply this by 100 to give you a percentage.

$400,000/$500,000 x 100 = 80% LVR. This would mean you have a 20% deposit of $100,000 towards your $500,000 property.

Learn more about LVR

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.

No, Pepper Money is not a bank. Pepper Money is what's referred to as a non-bank lender.

Non-bank lenders like Pepper Money are bound by the same responsible lending laws that apply to banks. To operate as a consumer credit provider we must hold an Australian Credit Licence and comply with the National Consumer Credit Protection Act.

The main difference between Pepper Money and traditional banks is that Pepper Money is not a deposit-taking institution, so we’re not prudentially regulated by the Australian Prudential Regulation Authority (APRA). But we are regulated by the Australian Securities and Investments Commission (ASIC).

We offer a variety of lending solutions, including some the banks won’t.  We also offer car loans, personal loans, loans for professional equipment, and commercial loans.

Pepper Money sources it’s diversified funding from debt investors in the global debt capital markets through well-established securitisation programs and funding lines from a broad range of the largest domestic and global banks.

Applying for a Pepper Money home loan

Applying for a Pepper home loan is easy. All you have to do is contact one of our Lending Specialists on 137 377 from Monday to Friday, between 8:00am and 6:00pm. They will talk with you and guide you through the process.

Have your documents ready beforehand to help get the process moving even more quickly! To understand the full process and what’s required at every stage click here.

You can also get started by getting an estimate of your borrowing power here in just a matter of minutes, or submit an online enquiry and we’ll call you back to discuss your home loan options.

You can choose to apply for a pre-approval by calling one of our Lending Specialists on 137 377. This is typically obtained so you can start house hunting and bid with confidence on auction day when the right property comes along. Note that pre-approval is conditional and does not guarantee that your loan will be approved in full.

You can apply for a conditional approval by calling one of our Lending Specialists on 137 377. During the process, we will need to undertake a valuation of the property to validate the estimated value or purchase price of the property. If all of the conditions have been met and the valuation report meets our lending criteria, it will progress to unconditional approval.

Yes. We have around 15,000 accredited brokers across the country who can help find the best loan solution to suit your needs.

We need these documents from you to help us accurately assess your financial situation and to make sure you’re able to afford repayments on the home loan. To find out how we store and handle your personal documents please read through our privacy policy here.

If you’d like to check the status of your application, please give us a call on 137 377.

We treat each loan application on its own merits, looking to understand the customer’s situation including their credit history, and then apply risk-based pricing to each loan. Sometimes this results in a higher interest rate for some of our customers.

Please do not hesitate to give us a call on 137 377 if you require further clarification.

Yes, it is. A valuation is an important step to finalising your loan and this must be conducted by one of our accredited panel of valuers. We will confirm if the property is suitable as security for the mortgage within 2 working days from the date of inspection.

At Pepper Money, the valuation fee is often included as part of the establishment fee or charged upfront if the cost of the valuation is substantial.

To prevent cases of fraud, Australian law requires all people who borrow money for a property to have their identity verified face to face. This is to ensure that the borrower is who he or she claims to be. At Pepper, we use a service called ZipID where a representative can visit you at your home or work to complete this check, which should only take about 5 minutes.

If all of the conditions have been met, you will receive your loan agreement which outlines the legal terms and conditions of your new loan. To accept the offer, you will need to return the signed document to us. Be sure to read each page carefully and initial in the correct places to prevent a significant delay in the process of getting your home loan.

The funds along with a welcome letter with details of your new loan will be released on the agreed settlement date.

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Home Loan FAQs

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Experiencing Financial Difficulty?


Please call us sooner rather than later.

If you are experiencing financial difficulty and are unable to afford your loan repayments, groceries or general daily expenses, please apply for assistance here or contact us on 137 377.

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