Lender slashes rates by up to 0.50%

by Madison Utley16 Mar 2020

A non-bank lender has reduced rates across its suite of residential home loans by up to 0.50%, in addition to announcing a special offer whereby upfront fees on near prime and specialist loans will be reduced by at least $1,835.

Pepper Money GM of mortgages and commercial lending, Aaron Milburn said, “Pepper has a diverse range of loan solutions to suit its customers’ differing real-life circumstances and we’ve done everything we can to ensure our customers benefit fully from the RBA’s rate cut.”

New customers applying for prime loans have been offered a rate cut of up to 0.25%.

New customers applying for near prime loans, designed for borrowers with a clear credit history for the past two years, will see a rate cut of up to 0.25%, with an accompanying upfront fee reduction of at least $1,835, which includes a free property valuation.

Specialist loans, those for borrowers whose current financial situations have made it challenging for them to secure a mortgage, have been reduced by up to 0.5%, across various LVR bands, while upfront fees have been temporarily reduced by at least $1,835.

“The changes we’ve announced today ensure that people currently considering their loan options will benefit from the savings on offer,” said Milburn.

Existing customers will receive a 0.2% interest rate cut across prime and near prime loans, and a 0.25% rate cut on specialist loans.

These changes apply to both principal and interest, and interest only applications across various LVR bands and to new commercial customers.