Pepper Loan – A Review of Australia’s Largest Specialist Lender

pepper Loan has become Australia’s largest specialist lender both through mortgage brokers and as a wholesale funder for non-bank lenders. During the GFC they went on an international spending spree buying up a number of Australian and foreign banks’ commercial and personal loan books at a discount to their book value.

They offer a variety of home loans and car loans and have a focus on providing flexible lending options for those with less conventional credit histories or unique financial situations. They also tend to be more competitive on their interest rates compared to other specialists.

Unlocking Financial Possibilities: Your Guide to Pepper Money Personal Loans

One of the things that Pepper offers is a second-charge mortgage on their homeowner loans, which is secured against an existing home (your first charge mortgage remains in place). This could be helpful for those looking to consolidate debt into fewer monthly repayments or who need a longer repayment term than the standard 30 years.

However, it is important to note that a higher interest rate may apply for this product. Also, Pepper charges a fee of $474 when you switch to a variable rate mid-term and they also have an ongoing fee of $8.90. Other fees like dishonoured payment and late payment fees also apply.

Pepper also allows penalty-free overpayments on their home loans, which can help borrowers lower their interest rates or shorten the term of their loan. It’s worth checking their terms and conditions though as some lenders have caps on overpayments.