Non-bank cuts prime rates

by Julia Corderoy04 Mar 2015
A non-bank lender has announced interest rate cuts, despite the Reserve Bank’s decision to keep the cash rate on hold yesterday.

Pepper has slashed the interest rates across its prime range, Pepper Essential, by up to 0.36%. The new rates, effective Tuesday 10 March, will start from as low as 4.49% for full documentation and 4.99% for alternative documentation.

The decision to slash its prime rates comes after the lender cuts rates by up to 70bps across a range of its specialist and near-prime home loan products last month.

Mario Rehayem, Pepper’s director of sales and distribution, says the decision to reduce interest rates right across its suite of loans is reflective of Pepper’s competitive pricing and service proposition for brokers.
“Following the RBA’s decision to cut the cash rate in February, we reduced rates across our home loan products, and even though the RBA left rates unchanged today, we have are again reducing our home loan interest rates,” he said.
“To add to this, we hear from our brokers every day that they still pick providers based on their service offering, over and above commission or pricing. The clear message from brokers is that Pepper’s value proposition is still the number one driver for them and a crucial ingredient is our commitment to providing same-day turnaround for applications submitted to us before 12pm.”

For full doc loans across the Pepper Essential prime product, rates range from 4.49% with an LVR up to 55% to 5.29% with an LVR over 80% and up to 85%.

For alt doc loans across the Pepper Essential prime product, rates start from 4.99% with an LVR up to 55%, to 5.89% with an LVR over 75% and up to 80%.