The Reserve Bank of Australia’s decision to increase the official cash rate means that Pepper Money has also increased its variable interest rate for existing customers and customers applying for a variable rate loan with us.

What do I need to know if I’m an existing customer?

existing customer

From 17 June 2022 (the Effective Date), the interest rate that applies to your loan will increase by 0.65% p.a.

You will separately receive notice of your new interest rate and what your new repayments will be. Your repayments will not change until we notify you of these changes.

After the Effective Date, you can check your loan details online using LoanServiceNet.

For customers who are concerned about changes to their loan or need extra help we have a range of options available here to help you with managing your loan and planning ahead.

Why have you chosen to lift your rates higher than the official RBA cash rate and the major banks?

Like most lenders, the increasing cost of funds has impacted our rate change decision.

Given we are not a bank, our funding comes from alternative sources. The rate we are charged for these funds has significantly increased this year, so we’ve had to pass some of these costs on.

We acknowledge that this increase might be more than you were expecting. If you need some support, we have a range of options available here to help you manage your Pepper Money loan.

What do I need to know if I have an application with Pepper Money?

application with Pepper Money

Effective 23 June 2022 interest rates for new and existing applicants will increase.

For applications that are received and settle from 23 June 2022, the applicable interest rate for your loan will be based on the carded rate on the day of settlement. 

For any existing applications that have not settled by 23 June 2022, the interest rate and the increase you will receive will depend on the day you applied for your loan and when you settle. This is because in the current interest rate environment, your interest rate will likely change prior to when you settle.

You’ll be notified of the applicable interest rate for your loan in your Welcome Call or loan pack received after settlement.

If you have any questions about how this rate change impacts your application, we recommend speaking with your broker or lending specialist.