After consulting with its broker partners, Pepper has announced a new offer to save borrowers thousands of dollars over the costly Christmas period.
The ASX-listed lender has cuts its mortgage risk fees (MRF) by 0.5 per cent for its near prime and specialist home loans.
Pepper’s director of sales and distribution Mario Rehayem told The Adviser that the specialist lender consulted brokers before deciding to slash its fees.
“We spoke with brokers and came to a general consensus that during the Christmas period and post-Christmas period, most households endure a little bit of pressure on surplus cash. Especially if they are purchasing a home,” Mr Rehayem said.
“So instead of concentrating on the rate, we’ve decided to concentrate on an area that will be particularly beneficial to customers over the Christmas period.
“On an average loan of $500,000 they will be saving $2,500, which is meaningful, especially if the loans coming in now are most likely to settle in the tail end of December or in early January.”
Mr Rehayem said the new offer comes at a time when all lenders have their eyes firmly on rates, which have been rising out-of-cycle as a result of regulatory pressures.
“We looked at the fees, where we can save money to borrowers which will give us another edge over our competitors,” he said.
The new MRF discount is available on all Pepper Easy and Pepper Advantage home loans applications submitted from 16 November 2015 until 31 January 2016.
[Related: Pepper applauds brokers after record loan growth]