What is a non-conforming home loan?

Self-employed gym owner

We understand that in real life everyone’s situation is different - not everyone will tick all the boxes required by the banks and other mainstream lenders. Non-conforming home loans may offer an alternative option to home loan success for some of these borrowers.

What's a non-conforming loan?

A non-conforming home loan is a home loan designed for borrowers who don’t conform to the major banks' standard loan criteria. It is the opposite of what’s known as a ‘prime’ home loan.

Who is a non-conforming loan for?

Non-conforming home loans are typically used by home buyers who don’t tick all of the traditional boxes required to apply for a prime home loan. There are several reasons a borrower may decide to apply for a non-conforming loan - perhaps they’re self-employed, don’t have the required proof of income, or have a few dents in their credit record.

Am I a non-conforming borrower?

If you’ve ever been declined for a home loan because you're self-employed, don't have up to date financial records or have a poor credit history, then your home loan application may be referred to as 'non-conforming' or ‘specialist’.

We understand that if you’ve been rejected for a home loan then it can be disappointing – but all is not lost. We understand that real life happens, and our flexible and individual approach has helped provide an alternative approach to borrowers since 2000. 

We could help borrowers in the following circumstances:

  • Self-employed – you've recently started a business
  • Poor credit history – previously declared bankrupt or a history of credit defaults
  • Have an ATO debt you need to pay out
  • Have a solid income, but not much of a deposit
  • Have a deposit but it’s an inheritance or a gift
  • Have non-standard income – work part-time or are a contractor, or have irregular income as a business owner
  • Have multiple debts to consolidate such as personal loans, credit cards or business debt
  • You’re nearing retirement and have been declined by major bank


We're here to help

While we don’t offer low doc loans, we can help with alternative documentation (Alt Doc) loans - a home loan that requires alternative documents to a standard ‘prime’ loan. 

Whether you have full documentation or are interested to learn more about alternative documentation loans, contact one of our Lending Specialists on 137 377 or enquire online. Alternatively speak to an accredited Pepper Money broker.


Apply for a Pepper Money Home Loan

Want to find out where you stand?

We've got the online tools and calculators to help get your home loan journey underway. Work out how much you may be able to borrow and even quickly find out what indicative interest rate you might be eligible for.

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 licensed financial or tax adviser.

All applications are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply. 

The results of the borrowing power calculator are based on information you have provided and is to be used as a guide only. The output of the calculator is subject to the assumptions provided in the calculator (see 'about this calculator') and are subject to change. It does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it. The interest rates do not reflect true interest rates and the formula used for the purpose of calculating estimated borrowing power is based on the assumption that interest rates remain constant for the chosen loan term. Your borrowing power amount will be different if a full application is submitted and we complete responsible lending assessment. The results in the calculator do not take into account loan setup or establishment fees nor government, statutory or lenders fees, which may be applicable from time to time. Calculator by Widgetworks.

Pepper Money Personal Loans is a brand of Pepper Money Limited. Credit is provided by Now Finance Group Pty Ltd, Australian Credit Licence Number 425142 as agent for NF Finco 2 Pty Limited ACN 164 213 030. Personal information for Pepper Money Personal Loans is collected, used and disclosed in accordance with Pepper’s Privacy Policy & the credit provider’s Privacy Policy.

Pepper Money Limited ABN 55 094 317 665; AFSL 286655; 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.

Get in touch with a Lending Specialist

Tell us about your situation. The more we learn, the better we can help.