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Pepper reintroduces pre-COVID credit policies

The non-bank lender has wound back its serviceability policy after reducing its risk appetite in response to the COVID-19 crisis.

Pepper Money has informed brokers that after reassessing its credit policy, it has rolled back measures introduced at the height of the COVID-19 crisis amid fears of deterioration in credit quality.  

The non-bank has resumed accepting 100 per cent of casual and overtime income, accepting commissions and bonus income, and cash out requests for “verified purposes”.

However, Pepper Money stressed that it would continue to “adopt a measured approach to credit assessments” by “maintaining a specific COVID-19 customer impact assessment” to examine any foreseeable changes to the applicant’s financial position.

“We are committed to providing brokers and their customers with flexible and competitive lending products across mortgages, commercial, asset finance and personal loans to help them achieve their goals,” Pepper Money’s general manager, mortgages and commercial lending, Aaron Milburn said.


Pepper is the latest lender to ease COVID-induced restrictions, joining the likes of Westpac and its subsidiaries, which readjusted income shading rules to pre-COVID levels.

However, other lenders, including Suncorp Bank, have continued to tighten their credit policies amid ongoing economic uncertainty. 

New near-prime rate

Meanwhile, Pepper Money has introduced a new promotion rate for near-prime customers, in anticipation of a rise in demand for such products from borrowers recovering from the COVID-19 crisis.

Pepper Money has revealed that until the end of October, it will be offering near-prime rates starting from 3.79 per cent (4.10 per cent comparison rate).


“Whether a customer is refinancing, rebuilding or recovering, people are simply looking to improve their situation in life. And in real life, being presented an alternative solution is a much-preferred outcome than sitting on the side lines with no solutions to consider,” Mr Milburn added.

“This market-leading rate, combined with Pepper Money’s impressive same day turnaround times and renowned service, makes this a real winner for a broker’s customer.”

[Related: Suncorp overhauls serviceability policy]

Pepper reintroduces pre-COVID credit policies
Pepper reintroduces pre-COVID credit policies

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