Non-bank cuts rates, offers up to 65bps discount

by Julia Corderoy11 Aug 2016
Non-bank lender Pepper Money has reduced home loan rates for new and existing customers, giving some broker clients the opportunity to receive a rate discount of up to 65 basis points. 

Pepper Money home loan products will be cut by 15 basis points for new and existing customers, effective from Monday 29 August 2016, following the Reserve Bank cash rate cut. Meanwhile, announced in July for a limited time until 16 September, the Pepper Essential alt-doc standard loan has been discounted by 50 basis points.

Pepper Money’s director of sales and distribution, Mario Rehayem, said this means self-employed broker clients can get a discount of up to 65 basis points.

“It’s important that our customers are able to receive a competitive rate and benefit from the historically low interest rate environment. Each rate cut decision is based on balancing our customers’ expectations against funding market conditions which are impacting the whole industry,” he said.

“We pride ourselves on catering to segments of the market that are under-serviced, by providing first-class service, flexible products and competitive offerings, which we’re further demonstrating with this rate reduction.”

The Pepper Essential alt doc PLUS loan will also be discounted by 25 basis points. 

These reductions mean Pepper Essential alt-doc interest rates will now start from 4.04% (4.23% comparison rate).

In addition, Pepper Money has also extended its 25 basis point discount on mortgage risk fees for Pepper Easy (near prime) and Pepper Advantage (specialist) loans.