Pepper Money has unveiled significant policy updates aimed at better serving the unique financial needs of self-employed individuals.
The changes, effective from April 29, focus on simplified income verification, increased loan amounts, higher LVRs, and more options for vacant land financing.
The newly introduced policy changes streamline the process for self-employed borrowers, reducing required documentation for prime alt doc applications to a single item such as an accountant’s letter, business activity statements, or business bank statements.
Moreover, the maximum loan amounts have been increased across both prime alt doc and full doc options, with the prime alt doc option now offering up to 80% LVR for loans as high as $1.5 million.
“Our latest policy changes are a direct response to changing needs of self-employed borrowers, the current economic conditions, and our desire to support brokers in expanding their client base,” said Barry Saoud (pictured above), general manager of mortgages and commercial at Pepper Money.
In response to the challenges faced by self-employed individuals in proving income, Pepper Money has also adjusted its servicing calculator to simplify income calculations.
“We know that self-employed clients are a little different when it comes to demonstrating income, and with these changes we’ve introduced, brokers can assist more clients by providing a single verification of income across all of our loan options,” Saoud said.
Dumith Danister Kankanamge, a broker from Prime Choice, highlighted the positive impact of these changes on his clientele, particularly tradespeople and contractors.
Kankanamg praised Pepper Money’s tailored policies and support systems, saying, “Pepper Money delivers on what they promise.” He stressed the significance of understanding the unique circumstances of self-employed clients to effectively support their financial aspirations.
As the Australian market adapts to evolving economic conditions, including the Australian Taxation Office’s intensified efforts to collect debts, Saoud said Pepper Money was committed to its brokers and clients.
“We understand the pivotal role that brokers play in connecting borrowers with the right financial solutions,” he said. “Therefore, we are constantly refining our processes and systems to ensure brokers can access our services with ease and efficiency.”
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