Mortgage brokers have embraced Pepper Money’s new competitive loan product for near prime customers.
Near Prime Clear, which launched on Monday, offers a competitive price point for the growing number of customers who have a generally clean credit history but sit outside of the traditional prime lending space.
Following Pepper Money's successful pilot program, two long-standing brokers - Tim Rodda (pictured top), director of Loans on the Run, and Mathew Spiteri (pictured below), director of Engaged Finance, have shared their experience with the new product and the benefits for their clients.
“There are a lot of benefits to this product,” said Rodda.
They include a more accurate way of calculating SME income, especially for those businesses which, at times, had needed to access JobKeeper.
“We have found an alternative of one or two BAS statements or bank statements gives a better reflection on how businesses are tracking because a lot have stopped and started over the last two years,” he said.
Near Prime Clear can establish a client’s annual turnover for a period of time without the broker needing to speak with the client’s accountant. In terms of standard deals for investors, it also allows a higher level of lending because it did not use debt-to-income ratios.
“We are finding in most instances we receive confirmation from Pepper within 24 to 48 hours with bonified pre-approval or formal approvals with the new product. It is a no-brainer for us to help our clients to get the deal done,” said Rodda.
Mathew Spiteri
Spiteri said there were many ways brokers and their clients could benefit from Near Prime Clear.
“It provides access to credit for newly established businesses and flexibility for self-employed borrowers to submit their latest tax return rather than an average over the last two years (which can be negatively impacted by COVID),” Spiteri said.
It provides higher LVR lending and first home buyers are able to borrow up to 95% of the total purchase price.
“Pepper provides great BDM support and a level of certainty with their new product. Near Prime Clear give more finance options to good people,” said Spiteri.
Pepper Money CEO Mario Rehayem said there was a growing need in the market for ensuring Australians impacted by real life had access to more competitive pricing.
“This product will suit the self-employed or PAYG applicant who has just started a new job, a client whose income or employment history doesn’t quite fit the criteria for a mainstream lender, consideration of the family tax benefit such as family assistance payments, or clients who want to consolidate their tax debt return,” Rehayem said.
Pepper Money general manager of mortgages and commercial lending Barry Saoud said the time for brokers to work with Pepper and its flexible and fast approach is now.
“Borrowers will continue to seek out lending solutions for their real and unique life circumstances, so there’s a golden opportunity for brokers to help them do this,” he said.
