The lender watches over the self-employed

A non-bank lender has launched a series of discounts and specials aimed at helping self-employed borrowers truly take advantage of the current low interest rate environment.

The Pepper Money promotion, running until the end of January 2021, will allow brokers to offer independent borrowers reduced interest rates and waiver fees on prime, near-prime and specialty mortgage products. by Pepper Money.

Aaron Milburn, managing director of mortgages and commercial loans at Pepper Money, said the special is timely given that the self-employed segment has been among the hardest hit this year due to the COVID pandemic. 19.

“Everyone is talking about record interest rates and the plethora of cash back promotions in the market, but if a self-employed borrower is looking to buy a new home, refinance, or pay off unpaid tax debts, these offers won’t. are not always available to them, “he said.

During the promotional period, Pepper Money’s lowest interest rate for freelance borrowers is 2.99% per annum (compare rate 3.19% per annum) for a top notch alt doc loan up to 55% LVR.

The group will also offer zero mortgage risk fees for all alt doc loans close to the premium up to 70% LVR. In addition, the lender will waive title protection fees; all of these discounts represent savings of approximately $ 6,000 for a self-employed person close to privileged clients who wish to contract a loan of $ 500,000.

According to Milburn, some banks have not been able to update their lending rules to accommodate the growing trend of self-employment in Australia, making it difficult for industry players to meet the strict criteria needed to access current market offers.

“For the self-employed, proof of ‘standard income’ is often something they don’t have when it comes to applying for a home loan,” Milburn said.

“Whether a client is refinancing, rebuilding, or recovering, people are just looking to improve their situation in life, and the way someone chooses to work shouldn’t be a barrier to their progress. “

Alice P. Darby