Pepper Money fixed interest rate
home loan fact sheet
Pepper Money's Fixed interest rate home loan option gives customers the certainty of knowing their repayments and interest rate for a chosen fixed term. And if things change, you have options. If you decide to repay your loan early, we don’t charge break costs.
- 2 years
- 3 years
- 5 years
- 7 years
- 10 years
Yes, you can make extra repayments at any time. There’s no limit.
Just keep in mind: there is no redraw during the fixed interest rate period.
No, redraw is not available for any additional repayments you have made into your fixed rate home loan option during the fixed interest rate period.
If you’d like access to extra repayments, you could consider:
- a variable rate loan, or
- a split loan (part fixed, part variable)
These options may include redraw or an offset sub-account (fees may apply).
You may still be able to apply. We consider customers with a wide range of credit histories.
All applications are subject to our assessment and eligibility requirements.
Pepper Money’s fixed rate home loan option has no break costs, which means you won’t incur fees for breaking your fixed rate period. This gives you more flexibility if your situation changes.
Yes. Fixed rate home loans let you lock in your rate for 90 days at approval (fee applies). At settlement, you’ll get the lower of your locked rate or the current rate.
If the lock expires, the settlement rate applies. You can relock for another 90 days at an extra cost.
A non-refundable fee is charged at settlement even if rates fall and can be added to your loan (increasing Loan-to-Value Ratio and interest) or paid upfront.
To secure a fixed interest rate, a non-refundable Rate Lock Fee applies to each home loan application.
| Fixed Interest Rate Loan Balance | Rate Lock Fee |
| Fixed rate loan balances rate locked ≤ $500,000 | $750 per home loan application |
| Fixed rate loan balances rate locked > $500,000 | 0.15% of fixed rate loan balance at settlement |
Example: For a loan amount of $600,000, the Rate Lock Fee would be:
$600,000 × 0.15% = $900
The Rate Lock Fee is payable once per application and is non-refundable. Once a rate lock request has been approved, the fee will still apply even if fixed interest rates decrease afterwards.
As we are not a bank, we don’t offer deposit products, so our funding comes from alternative sources. The interest rate we are charged for these funds is slightly higher than what a bank might charge, so we pass this additional cost on.
Yes. You may be able to take out an additional advance by creating a new loan split, provided you have fewer than three existing loan splits. All applications are subject to credit assessment, eligibility criteria, and minimum and maximum advance amounts.
Yes. Security substitutions may be available for fixed rate home loans, provided the new security is like-for-like and falls within the same security risk category. For example, a house can be substituted for a house, or a unit for a unit. Eligibility criteria apply.
Yes. You can have up to four loan splits, with any combination of fixed and variable interest rates. This allows you to fix a portion of your loan for repayment certainty while keeping a variable portion that may provide access to features like redraw and offset sub-accounts (monthly fees apply). You can also have more than one fixed rate split.
No. Offset sub-accounts cannot be linked to fixed rate home loans. If you'd like an offset facility, you may wish to consider splitting your loan between fixed and variable rates, with the offset sub-account linked to the variable rate portion. Please note that an offset sub-account counts as one of the four available loan splits and monthly fees apply.
Yes. Interest-only fixed rate home loans are available. The fixed rate term and interest-only period must be the same length, and interest-only repayments are only available on 2, 3 and 5-year fixed rate terms, as interest-only periods have a maximum term of 5 years.
No. Visa Debit Card access is not available on fixed rate home loans, as redraw and offset facilities are not available with fixed rate loans.
If you'd like card access, you may wish to consider splitting your loan between fixed and variable rates and linking a Visa Debit Card to an offset sub-account attached to the variable rate portion (monthly fees apply).
At the end of your fixed rate term, your loan will automatically revert to the applicable variable interest rate unless you choose to refix your home loan.
If you have a split loan with both fixed and variable rate portions, only the fixed rate split will revert to a variable rate when the fixed term expires.
Unfortunately not. If you’re an existing Pepper customer, it is not possible to switch to a fixed interest rate home loan.
Yes. If you have a fixed rate principal and interest home loan, you can choose to make repayments weekly, fortnightly or monthly.
If you have a fixed rate interest-only home loan, repayments must be made monthly.
Contributor | Anthony Moir, Treasurer
Anthony joined Pepper Money in February 2021 as Treasurer. With over 25 years of experience in treasury and debt capital markets, he has worked with a diverse range of bank and non-bank lenders.
Published by Pepper Money. Read our Editorial Policy to learn how we create and review content.
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Information is correct at 26 March 2024 and subject to change at any time. Offers and promotions may be continued, withdrawn, or changed at any time without notice.
Information provided is factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licenced financial or tax adviser.
All applications for credit are subject to credit assessment, loan eligibility criteria and lending limits. Terms, conditions, fees and charges apply. The actual interest rate will depend on the borrower’s circumstances and the information verified during the loan application assessment.
Pepper Money Limited ABN 55 094 317 665; AFSL and Australian Credit Licence 286655 (“Pepper”). All rights reserved. Pepper is the servicer of home loans provided by Pepper Finance Corporation Limited ABN 51 094 317 647. Pepper Asset Finance Pty Limited ACN 165 183 317 Australian Credit Licence 458899 is the credit provider for asset finance loans. Pepper and the Pepper Money logo are registered trademarks of Pepper Group Assets (Australia) Pty Limited and are used under licence.
