How is Pepper Money's lending criteria different from the major banks?
A more flexible approach to lending
At Pepper Money, we know everyone’s financial situation is different. That’s why we take a more flexible, real-life approach to lending.
We’re required to comply with the National Consumer Credit Protection Act. Our difference is in how we assess applications. Some lenders use automated credit scoring and standard rules. We take a more balanced approach by looking at your overall financial situation.
Rather than focusing on a single data point, we aim to understand what may be possible based on the full picture.
In simple terms, we look at the full picture, not just one part of your application.
Who we help
Our approach is designed to support a wide range of customers, including those who may not meet standard bank criteria.
We may be able to help if you:
- are self-employed or have non-standard income
- have experienced credit challenges in the past
- earn income from multiple or less traditional sources
- are investing in property or building a portfolio
Every application is assessed individually, based on your full financial picture.
This means you may still have options, depending on your current situation, even if a bank has said no.
How our approach differs
Traditional lenders often apply strict rules when assessing applications. We take a more flexible approach that reflects real-life situations.
| Traditional lenders typically: | Pepper Money and other non-banks: |
|---|---|
| Rely on standard income types | Consider a wider range of income sources |
| Apply strict credit history thresholds | Look at your overall financial situation |
| Use automated decision-making | Take a case-by-case approach, with human assessment part of the process |
This approach allows us to support some customers who may not fit a standard borrowing profile. For you, that could mean more flexibility in how your application is assessed.
What we look at
When reviewing your application, we consider a combination of factors:
Rather than focusing on one factor in isolation, we take a balanced view to build a clearer picture of your situation.
The goal is to understand what you can reasonably afford, not just whether you meet a single rule.
Real-life scenarios
Everyone’s situation is different. A more flexible approach may help in scenarios like these:
Self-employed borrowers
Your income may not look the same as a salaried employee, but your overall financial position may still support a loan.
For example, if your income varies month to month, we may still consider your longer-term earnings.
Customers rebuilding their credit
Past credit issues don’t always reflect your current situation. If things have improved, we take that into account. What matters most is where you are now, not just what’s happened in the past.
If you're working on improving your position, it may help to understand ways to improve your credit profile.
Non-standard income earners
Income from multiple sources or variable earnings may still be considered as part of your application. This could include things like contract work or multiple income streams.
These are general examples and don’t guarantee an outcome, but they show how different situations can be assessed.
Planning your next steps
It’s important to understand:
- all applications are subject to credit assessment, eligibility criteria and lending limits
- terms, conditions, fees and charges apply
If you don’t meet standard lending criteria, you may still have options.
If your situation has changed recently, it may also be worth understanding your refinancing options.
Speaking with a mortgage broker can help you understand what may be possible based on your situation and give you a clearer idea of where you stand before you apply.
You can also use our home loan repayment calculator to get a clearer idea of what may be manageable based on your situation.
Need more information?
Frequently asked questions
In some cases, yes. It depends on your current circumstances and the reason for the decline.
They may take a more flexible approach, depending on the situation.
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. Read more.
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All applications for credit are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply.
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