Pepper Money is lifting how far it will stretch on deposits, loan sizes and property types as it looks to capture more of the growing demand for flexible credit solutions.
Pepper Money has pushed high loan-to-value (LVR) boundaries with a major lending overhaul, significantly increasing its maximum LVR ratios and loan sizes across metro and regional Australia.
Outlining the changes, Pepper said the new settings were designed to provide brokers more latitude when working with customers who had smaller deposits, larger borrowing needs or non‑standard applications.
The headline shift is a lift in maximum LVR to 98 per cent, inclusive of the lender’s protection fee across all property locations – categories 1 to 4 – with the new ceiling also applied to high‑density units.
Pepper is also substantially increasing how much can be borrowed at those leverage levels.
The lender has lifted its maximum loan size at 98 per cent LVR to $3 million, a move it said tripled its previous lending capacity at that ratio.
At lower leverage points, the appetite is also expanding: the cap at 80 per cent LVR is rising to $5 million, doubling the prior limit.
The lender is further broadening the types of properties it will consider, with minimum unit sizes now accepted from 30 square metres.
These changes apply across Pepper’s prime and near‑prime offerings, which Pepper would provide “more customers a pathway to property ownership.”
Alt Doc ‘market first’ and white‑label reach
In a move likely to attract attention from brokers working with self‑employed clients, Pepper is introducing a 95 per cent LVR (including the lender's protection fee) across its Alt Doc range.
The lender described the move as a market first, arguing that it would create “greater opportunity for self‑employed customers.”
Pepper confirmed that the expanded lending capability would not be confined to its own brand.
The new parameters will also roll out through its white‑label partnerships, extending the higher LVRs, larger loan caps and broader property criteria into those channels, which Pepper said would give partners “more options and more ways to help customers move forward.”
Responding to rising non‑bank demand
Pepper’s mortgages and commercial lending chief executive, Barry Saoud, framed the overhaul as a direct response to shifting borrower and broker behaviour.
Citing recent industry research, he noted that “70 per cent of brokers said they sent more loans to non‑banks in the last 12 months, which is up from 67 per cent in 2024, driven by demand for flexibility, speed and the ability to support more complex borrowers.”
Yet Saoud stressed that the broader credit box does not signal a change in Pepper’s core risk appetite.
“This isn’t about changing who we lend to. It’s about expanding what’s possible for Australians by giving brokers more flexibility to solve a wider range of customer scenarios,” he said.
“The expanded policy is designed to help a range of borrowers, regional customers with fewer lending options, and investors navigating tighter lending limits.”
Regional focus and ‘Let’s Go’ campaign
John Lafferrairie, head of white label at Finsure Loans, pointed to the regional implications of the changes and welcomed the expanded capacity across Pepper’s white‑label network.
“Regional Australians don’t always fit neatly into traditional lending models, whether it’s due to property type, location or individual circumstances,” Lafferrairie said.
“Expanding lending options across more locations means brokers have greater flexibility to support customers wherever they are, helping more Australians move forward with confidence.”
Pepper also used the policy shift to anchor its new broker‑facing marketing push, branded “The Let’s Go Lender”.
Saoud said the campaign “brings together the Can Do attitude of our people with our continued focus on improving our products, policies and services,” positioning the latest package of changes as evidence of that pledge.
“These changes are the proof behind that. Larger loans, higher LVR support and broader reach give brokers more options and more momentum to help customers take their next step,” he said.
[Related: Pepper bolsters AFG, Mortgage Choice commercial suites]
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