Pepper Money has broadened its lending policy, lifting maximum loan-to-value ratios and loan sizes to give brokers more scope to support customers with smaller deposits, larger borrowing needs or non-standard circumstances.
The move comes as non-bank lenders continue to pick up a growing share of broker business.
Pepper Money chief executive of mortgages and commercial lending Barry Saoud (pictured) said the update responds to a shift he's seeing among brokers.
"2025 Industry research shows 70% of brokers said they sent more loans to non-banks in the last 12 months, which is up from 67% in 2024, driven by demand for flexibility, speed and the ability to support more complex borrowers," Saoud said.
He said the update was about expanding options rather than changing the lender's risk appetite.
"This isn't about changing who we lend to. It's about expanding what's possible for Australians by giving brokers more flexibility to solve a wider range of customer scenarios," Saoud said.
The changes include a maximum LVR of up to 98%, including the lenders protection fee, across all property location categories, extending to high-density units. Loan size at that LVR has increased to $3 million, tripling the lender's previous capacity. Alt doc borrowers now have access to 95% LVR including the lenders protection fee, a change Pepper Money describes as a market first, aimed at self-employed customers.
Separately, loan size at 80% LVR has doubled to $5 million, and minimum unit sizes have been reduced to 30 square metres. The changes apply across both Prime and Near Prime Clear, and will extend to Pepper Money's White Label partnerships.
That network carries real scale — Pepper recently expanded its white label offering through AFG and Mortgage Choice, and white label now accounts for more than half of the lender's mortgage distribution.
Finsure Loans head of white label John Lafferrairie welcomed the changes, particularly for regional borrowers who can fall outside conventional lending criteria.
"Regional Australians don't always fit neatly into traditional lending models, whether it's due to property type, location or individual circumstances,” Lafferrairie said. “Expanding lending options across more locations means brokers have greater flexibility to support customers wherever they are, helping more Australians move forward with confidence."
The policy changes launch alongside Pepper Money's new broker campaign, The Let's Go Lender, which the company says reflects its focus on giving brokers more tools to help customers progress.
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