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A non-bank lender has launched a series of discounts and special offers aimed at helping self-employed borrowers be able to actually benefit from the current low interest-rate environment.
Pepper Money's promotion, running until the end of January 2021, will enable brokers to offer self-employed borrowers discounted interest rates and waived fees across Pepper Money's prime, near prime and specialist home loan products.
Aaron Milburn, general manager for mortgages and commercial lending at Pepper Money, said this special is timely given that the self-employed segment has been among the hardest hit this year due to the COVID-19 pandemic.
"Everyone’s talking about record low interest rates, and the plethora of cash-back promotions out in market, but if a self-employed borrower is looking to buy a new home, refinance, or pay outstanding tax debts, these offers aren’t always available to them," he said.
Over the promotional period, Pepper Money's lowest interest rate for self employed borrowers is 2.99% pa (comparison rate 3.19% pa) for a prime alt doc loan up to 55% LVR.
The group will also offer zero mortgage risk fees for all near prime alt doc loans up to 70% LVR. Additionally, the lender will waive title protection fees; all of these discounts together represent savings of around $6,000 for a self-employed near prime customer looking to take out a $500,000 loan.
According to Milburn, some banks have not been able to update their lending rules to accomodate for the growing trend of self-employment within Australia, making it challenging for those in the sector to meet the stringent criteria necessary to access current offers in the market.
"For the self-employed, proof of ‘standard income’ is often something they don’t have when it comes to applying for a home loan," said Milburn.
"Whether a customer is refinancing, re-building or recovering, people are simply looking to improve their situation in life, and the way someone chooses to work shouldn’t be an impediment to getting ahead."
