Following the Reserve Bank’s decision to cut the official cash rate by 25 basis points last week, a leading Australian mortgage provider has cut interest rates across its home loan products for new and existing customers.
All Pepper Money home loan customers will receive a 15 basis point cut effective from Monday 29 August 2016.
Pepper Money’s director of sales and distribution, Mario Rehayem, said the cut was a decision that would directly benefit its home loan customers.
“It’s important that our customers are able to receive a competitive rate and benefit from the historically low interest rate environment. Each rate cut decision is based on balancing our customers’ expectations against funding market conditions which are impacting the whole industry.
“We pride ourselves on catering to segments of the market that are under-serviced, by providing first-class service, flexible products and competitive offerings, which we’re further demonstrating with this rate reduction," he said.
Pepper Money has also cut its interest rates by 50 basis points across its prime, Alt Doc loan range until 16 September, a promotion that has been available to self-employed broker customers since July 2016.
“Our self-employed customers, who are able to take advantage of both cuts, could receive up to 65 basis points cut from their interest rate.
“Brokers will find our promotional rates appealing as it means their self-employed clients can benefit from a prime home loan that allows purchases, refinances, non-genuine savings, debt consolidation and cash out with market leading turnaround times," Mr Rehayem said.
The Pepper Essential Alt Doc standard loan will be discounted by 50 basis points and the Pepper Essential Alt Doc PLUS loan will be discounted by 25 basis points.
These reductions mean Pepper Essential Alt Doc interest rates will now start from 4.04 per cent pa (4.23 per cent pa comparison rate).
In addition, Pepper Money has also extended its 25 basis point discount on mortgage risk fees for Pepper Easy (near prime) and Pepper Advantage (specialist) loans.