Login
ISCOVER
The specialist lender has announced that it has expanded its construction loan offering into its prime product and “further enhanced” the options available under the near prime range.
The prime offering, Pepper Essential Construction Loans, is available for new construction loans for “clean credit clients” that want to borrow up to $1.5 million and build up to two properties on one title, including town houses and duplexes.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The prime offering will cover both owner-occupied and investment purposes for loan-to-value ratios (LVR), inclusive of fees, of up to 95 per cent (on Full Doc).
The LVR drops to a maximum of 85 per cent for two properties, while Alt Doc options are available up to 80 per cent LVR (inclusive of fees).
For the near prime offering, Pepper Easy Construction Loans, the updates include:
- Accepting investment loans on Pepper Easy Construction PLUS loans;
- Increasing the maximum loan amount from $850,000 to $1.25 million (one property) or $1.5 million (two properties);
- Enabling the construction of up to two properties on one title, including town houses and duplexes;
- Increasing the max LVR from 90 per cent to 95 per cent (inclusive of fees); and
- Offering Alt Doc options of up to 85 per cent LVR (inclusive of fees).
Pepper has revealed that the changes have been made in response to “increasing demand from the broker market”.
The lender said: “With almost a quarter of a million (216,000) properties under construction nationally as at June 2017, construction builds are a booming industry and borrowers are looking to lenders for a finance solution to build their dream homes.
“In response to increasing demand from the broker market, effective 14 November 2017, Pepper Money has expanded [its] construction loan offering into the Pepper Essential (prime) product and further enhanced the construction options available under the Pepper Easy (near prime) range.”
[Related: Adelaide Bank rolls out construction lending to brokers]
