Following the Reserve Bank of Australia’s decision to cut rates at an emergency meeting on Thursday 19 March, like many lenders, Pepper Money has made the difficult decision not to pass on an interest rate reduction for all existing Australian home, commercial or construction loan customers with variable rate loans.
The market where we source money to lend to customers, the debt capital markets, has costs over and above the RBA's official cash rate. At the moment those costs are rapidly increasing for us instead of falling.
By keeping rates on hold, this allows us to support those existing customers who are most affected by COVID19.
We understand this isn’t the news you want to hear but we are in extraordinary times and need to make decisions that prioritise those that need help the most.
If you are feeling the financial impacts of the COVID19 pandemic, please talk to us sooner rather than later. The sooner you talk to us, the sooner we can understand your unique situation and discuss your options. You can learn more about the support we can provide here.
If you are paying more than you are contractually required to be paying for your home loan and would like to reduce your direct debit amount, we encourage you to contact us on 1300 650 931. By continuing to pay more, you are effectively paying off your loan faster. However, if you could use the cash elsewhere, please contact us.