Why Pepper Money?
We're fast: Credit decisions within 2 business days
We're flexible: Multiple loan options, if we can help, we will
We're accessible: We’re here to talk through your situation
What credit score do I need to buy a home?
We don’t just look at the black and white boxes on your home loan application. We make the effort to get to know the person behind the application and understand your personal circumstances.
We ask the questions that matter and uncover the reasons behind any blips on your credit report, which allows us to make an informed decision on your ability to repay your loan. What this means, is you could still apply for a home loan even with a less-than-perfect credit history.
How much deposit do I need to buy my first home?
Saving your deposit is often the hardest part of buying your first property. But the good news is that we may be able to help if you’ve saved just 5% of the purchase price. You’ll also need some funds in reserve for Government and legal fees – and don’t forget some change for that first trip to IKEA!
We may also be able to help if you’ve recently been gifted all or part of your deposit, either through inheritance, or a very generous family member.
See what your repayments might look like
This repayment calculator gives you an estimate of what your home loan repayments could be, based on information you have provided in the calculator. The calculator does not take into account loan establishment or application fees, nor government statutory or lender fees. It is to be used as a guide only and does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it.
Choose an option that works for you
Let's crunch those numbers
Buying your first home can be stressful! Getting a clear view of the numbers involved can help you understand where you stand. Our calculators are here to help you crunch those numbers and reach your savings target.
What other first home buyers are asking
You're not the first person to confuse LMI with LVR. Here are some popular questions from other first home buyers.
This is a calculation based on your total income, expenses, current credit exposure and your credit history. You can estimate your borrowing capacity in under 5 minutes using our home loan calculator - it’s quick, easy and won’t impact your credit score.
Different lenders charge different upfront and ongoing monthly fees, which should be factored in when saving your deposit. Some of these can be added to your loan balance, while others will need to be paid upfront – fees include establishments or application fees, and risk or mortgage insurance fees. Other smaller fees will be added to your balance each month.
You can view a summary of our home loan fees.
You’ll also need to pay solicitor fees along with local and state government taxes and levies. These can’t be added to your house loan balance and are usually paid upon settlement.
A few things in life are certain – and one of them is taxes. While stamp duty varies in each state or territory, it generally needs to be paid upfront and can’t be added to your loan balance.
However, there are different schemes and grants in each state to support first home buyers – so it’s worthwhile checking if you qualify for any support: First Home Owner Grant
To get an estimate of how much stamp duty you might need to pay in each state in Australia, try our Stamp Duty Calculator.
The interest rates for home loans tend to vary for each individual, depending on a range of factors:
- The amount you need to borrow against the property value; known as the Loan-to-Value Ratio (LVR)
- The size of your deposit
- Your income
- Credit history
- Any assets you own
- Any liabilities or credit obligations
- Chosen repayment type – paying off interest-only, or principal and interest
- The purpose of the loan – if it’s for an owner-occupier or investment property
You can find out what interest rate you might be eligible for in under five minutes using our home loan interest rate calculator. It’s quick, easy and won’t impact your credit score.
While we can submit the First Home Owners Grant (FHOG) on your behalf, we generally cannot use it as a deposit towards your home purchase as the funds are often not available on the settlement date. For any questions related to your specific situation please give us a call on 137 377
No. Unfortunately, we don't currently accept guarantors when applying for a home loan with us. We do, however accept up to 100% gifted deposits on some of our home loan options.
Lender’s Mortgage Insurance is a one-off fee that you’ll need to pay as a borrower to a third-party (a separate insurance company working with the lender). This is to protect the lender against the potential loss that may be incurred if you're unable to repay your home loan. This is generally charged upfront when you’re looking to borrow more than 80% of the value of the property (meaning you have an LVR over 80% - or a deposit of less than 20%). If you refinance later the fee may be refundable in certain circumstances.
To apply for a home loan, you’ll need to provide documents to verify your identity, employment, and financial position.
To prove your identity:
International passport showing a valid Australian permanent residency visa
To prove your deposit:
3 months banks statements showing a savings balance
Recent share trading statement, showing current value
To prove your income:
For PAYG applicants you’ll need two recent payslips plus one of the following:
• Most recent group certificate
• Most recent notice of assessment
• Current letter of employment
• Bank statements - showing last 3 months’ salary
For Self-Employed applicants, the required documents vary depending on how long you’ve been self-employed.
At least 6 months:
You’ll need to be able to show at least 6 months of GST and ABN registration and provide declaration of financial position, as well as one of the following: 6 months business bank statements, 6 months BAS-Pepper Money accountant’s letter (not accepted if ABN registered for < 12 months, on loan sizes > $1.5m or on Plus).
Over a year:
Last 2 years tax returns and notices of assessments, or
Last 2 years financial statements executed by a registered tax agent or accountant