Pepper Money Announces New Commercial Mortgage Policy Enhancements

Posted: 31-10-2023
Leading non-bank lender, Pepper Money has announced a series of exciting commercial real estate policy updates aimed at providing brokers greater flexibility and support.


Effective from 31 October 2023, these commercial policy changes address market challenges and opportunities for brokers and customers, offering serviceability solutions, increased loan sizes and LVR's, and diverse security types. It follows Pepper Money’s recent launch of Self-Managed Super Fund (SMSF) loans, designed for SMSFs seeking to purchase or refinance an existing property.

Pepper Money’s General Manager, Mortgages and Commercial, Barry Saoud expressed the non-bank’s commitment to its valued brokers: “As the financial landscape continues to evolve, these enhancements represent another step forward in enhancing the arsenal of options that brokers can provide, enabling them to deliver more tailored and effective solutions to their clients.”

He went on to mention their previous initiatives to support brokers, including the removal of clawbacks on commercial property lending, expansion of funding across Australia (including non-metropolitan and regional areas), simplified fee structures, and reduced legal charges. According to Saoud, these changes are a testament to Pepper Money’s continued dedication in supporting brokers to meet the growing demand in the commercial property sector.

“Now, by expanding and enhancing our commercial credit policies, we’re poised to open up more opportunities for brokers and more customers nationwide.”

Saoud emphasised that the policy enhancements are an extension of Pepper Money’s ‘smart’ approach to supporting brokers in their pivotal role of helping their commercial clients to succeed. He praised their credit and product team’s efforts in delivering another series of policy improvements that can truly make a difference for customers that require a flexible, real-life approach.


With more than 20 years of specialist and SME knowledge, dedicated BDMs around Australia and a ‘real-life approach to making deals happen,’ these collective enhancements and changes make Pepper Money the obvious choice for commercial lending.

'Smart’ Commercial Policy Enhancements

Pepper Money has a range of prime and near prime commercial property loans including full and alt doc options for customers needing commercial lending solutions up to $5M in loan size. New policy enhancements include:

More loan options for clients:

  • Increased LVRs to 80% across the board
  • Reduced minimum loan size to $100K


Expanded security types:

  • Vacant land accepted as a single security
  • National Disability Insurance Scheme (NDIS) 
  • Student accommodation accepted
  • Childcare centres valued ‘as-is’
  • Boarding houses accepted on Full/Alt Doc options


A real-life approach:

  • ICR no longer required for servicing
  • Annual reviews not required for loans between $1M-$3M unless the LVR is >70% and Interest Only
  • Accountants letter accepted up to $3M 



Welcoming the policy enhancements, Clem Kian, Director at Finselect Group said: “Efficiency and speed is important for our clients; and Pepper Money never falls short on their commitment of certainty and confidence.” “

The reduced minimum loan size will assist customers wanting to get into the market; and the expanded new security types such as NDIS and Vacant Land are brilliant because, not many lenders take them as security. These policy changes from Pepper Money are what the market needs, and it’s great to now have additional options on the table to offer our clients,” he said.

According to Saoud, “This year alone, Pepper Money has delivered over 15 policy enhancements to provide greater options for brokers and their clients. Our commitment to being the ‘home of loan options’ is unwavering; and we are continually dialled into the market, looking for ways to make doing business easier.”

Pepper Money’s policy enhancements across 2023 include:

  • Reduced serviceability buffers (residential and commercial)
  • Increased flexibility for credit impaired customers (residential)
  • Ability to fund metro and non-metro locations (commercial)
  • The Near Prime Clear home loan option now considers credit reports with RHI = 1 reporting for unsecured debt (residential)
  • Single form of income verification required on our commercial Prime Alt Doc loan option
  • Accountants Letter sole reliance allowed up to $2.5m on Near Prime, Near Prime Clear, and Specialist (residential)
  • Increased the defaults threshold from $1000 to $3000 on Near Prime and Specialist (residential)

“Our comprehensive range of policies across our residential and commercial loans can act as a bridge to get customers through what is a very challenging time. This holistic perspective is what makes our approach a bit different,” he said.

With further market challenges anticipated, Pepper Money will continue to look at fresh ways to adapt and enhance their offering to accommodate the ongoing needs of brokers and their clients.

To find out more about the latest policy changes from Pepper Money, please visit:

Media enquiries:

Pepper Money
Senior Marketing Communications Manager
Melissa Fanous
0412 033 103 

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