Pepper assures client benefit from 'Crack' promotion

by Adam Smith13 Feb 2012

Pepper Home Loans has said its new promotion to beat competitors' rates will not add undue time in processing applications and would leave clients better off.

The lender's "Give Pepper a Crack" campaign has encouraged brokers to shop a deal to Pepper once it has been unconditionally approved by another lender, and has vowed to beat competitor's rates. Pepper director of sales and distribution Mario Rehayem told Australian BrokerNews sending the deal to Pepper would not significantly prolong the time clients wait for approval.

"That's why we commit to a two business hour turnaround time to give the broker the opportunity to understand the rates and fees. I'm sure that two hour bracket is not going to make or break the deal. I'll wait two hours if I'm going to save money," Rehayem said.

Rehayem said the promotion was designed to draw brokers who had yet to use the lender. He said once brokers had accepted Pepper's competing rate quote, they would experience the lender's normal processes from application to settlement, albeit in a condensed timeframe as the supporting documentation would already be available.

By sending deals that had already reached unconditional approval, Rehayem said brokers could expect a quick turnaround from Pepper, reducing the time to unconditional approval by 40%.

"The longest time consumed in writing a loan is waiting on the broker or borrower to hand in the information. If our competitors have already issued an unconditional we already have the supporing documents, and we won't be receiving everything in dribs and drabs," he said.

Rehayem said the lender chose the promotion over a simple guarantee to beat advertised rates due to Pepper's pricing structure.

"Unlike other lenders in the non-conforming space which use technical matrices, Pepper’s pricing is based on the LVR and whether the loan is a full doc or alternative doc application. As a result of using the technical matrices, for our competitors the actual interest rate is not usually known until the unconditional approval stage of the deal," he said.

Brokers who participate in the promotion will also be entered in a draw to win either an iPad 2 or an iPhone 4S.

"What we're doing here is putting the borrower in a better position. What's in it for the broker is the best product and price, and we thought why not offer an iPad and iPhone as well?" Rehayem said.

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