July Solutions PLUS. Home Loan Product Guide

Transcription

1 July 208 Solutions PLUS Home Loan Product Guide

2 Solutions PLUS (PRIME) Product Specifications Full Doc Full Doc PLUS Purchase or refinance of owner occupied properties Purchase or refinance of owner occupied or investment properties, and also includes: Interest Only loans Minimum Loan Size $00,000 $2,000,000 (up to 70% LVR) For all loan sizes refer to Product Comparison Up to 95% for purchases (inclusive of fees) for loans up to $650,000 Up to 90% for all other loan purposes (inclusive of fees) for loans up to $750,000 Paid defaults up to $500 may be considered Genuine Savings 5% required if LVR > 90% (inclusive of fees) Not required on PLUS (PAYG) Cash out up to 90% LVR^ (not available for business use) Debt consolidation (maximum of 4 debts) Last 2 pay slips plus one of the following: Letter of employment, tax assessment notice, latest group certificate or 3 months bank statements Last 2 years tax returns; and Last 2 years tax assessment notices Residential securities in categories - 4 with a maximum land size of 25 acres (0 hectares) Vacant Residential Land only in categories and 2 with a maximum size of 2.5 acres (max 90% LVR) 0 30 years Principal and Interest Minimum manual redraw amount is $,000 Minimum online redraw is $50 Principal and interest Interest Only 2 (maximum 5 years followed by Principal and interest) Interest only is limited on owner occupied properties to 50% of total loan limit 3 Free additional payments are allowed Fees can be capitalised up to 95% LVR (inclusive of fees) for purchases only 4 Fees can be capitalised up to 90% LVR (inclusive of fees) for all other loans 4 ATM 5 facility Visa Debit Card (including paywave) ^ No limit on cash out if LVR is < 80%. Cash out portion is limited to 20% of security valuation if LVR > 80%. PRODUCT GUIDE

3 Solutions PLUS (PRIME) Product Specifications Alt Doc Alt Doc PLUS Purchase or refinance of owner occupied properties Purchase or refinance of owner occupied or investment properties, and also includes: Interest Only loans Minimum Loan Size $00,000 $2,000,000 (up to 70% LVR) For all loan sizes refer to Product Comparison Up to 80% (inclusive of fees) for loans up to $,000,000 Genuine Savings Paid defaults up to $500 may be considered Not required Cash out up to 80% LVR (not available for business use) Debt consolidation (maximum of 4 debts) ABN registered for 24 months GST registered for 2 months Declaration of financial position plus two of the following: - 6 months business bank statements - 6 months BAS - Pepper Money accountant's letter Residential securities in categories - 4 with a maximum land size of 25 acres (0 hectares) Vacant Residential Land only in categories and 2 with a maximum size of 2.5 acres 0 30 years Principal and Interest Minimum manual redraw amount is $,000 Minimum online redraw is $50 Principal and Interest Interest Only 2 (maximum 5 years followed by Principal and Interest) Interest only is limited on owner occupied properties to 50% of total loan limit 3 Free additional payments are allowed Fees can be capitalised up to 80% LVR (inclusive of fees) 4 ATM 5 facility Visa Debit Card (including paywave) PRODUCT GUIDE 2

4 Solutions PLUS Construction (PRIME) Product Specifications Full Doc Full Doc PLUS Purchase or refinance of land or property for the primary purpose of constructing up to two residential owner occupied properties or making structural changes to an existing owner occupied property. Purchase or refinance of land or property for the primary purpose of constructing up to two residential investment properties or making structural changes to an existing investment property. Minimum Loan Size $50,000 NSW/VIC property: $,500,000 (up to 80% LVR) 2 properties: $,500,000 (up to 85% LVR) All other locations or 2 properties: $800,000 (up to 95% LVR) For all loan sizes refer to Product Comparison Up to 95% for purchases (inclusive of fees) of land and improvement value Up to 90% for all other loan purposes (inclusive of fees) of land and improvement value Paid defaults up to $500 may be considered Genuine Savings 5% required if LVR > 90% (inclusive of fees) Not required on PLUS (PAYG) Cash out not available on construction loans Debt consolidation not available on construction loans Last 2 pay slips plus one of the following: Letter of employment, tax assessment notice, latest group certificate or 3 months bank statements Last 2 years tax returns; and Last 2 years tax assessment notices Registered first mortgage on residential property Residential securities in categories and 2 with a maximum land size of 2.5 acres 0 30 years Variable interest rate Interest Only (IO) on balance of loan during construction period (maximum of 2 months followed by P&I) Loan converts to principal and interest (P&I) repayments upon completion of construction Available only post construction at no extra cost Available only post construction at no extra cost Single account only during construction period and up to four splits post construction Additional payments are allowed during both the construction (IO) phase and the P&I phase Fees can be capitalised up to 95% LVR (inclusive of fees) ATM Visa Debit Card (inclusive paywave) available only post construction at no extra cost facility (post construction only) PRODUCT GUIDE 3

5 Solutions PLUS Construction (PRIME) Product Specifications Alt Doc Alt Doc PLUS Purchase or refinance of land or property for the primary purpose of constructing up to two residential owner occupied properties or making structural changes to an existing owner occupied property. Purchase or refinance of land or property for the primary purpose of constructing up to two residential investment properties or making structural changes to an existing investment property. Minimum Loan Size $50,000 NSW/VIC or 2 properties: $,000,000 (up to 80% LVR) All other locations or 2 properties: $800,000 (up to 80% LVR) For all loan sizes refer to Product Comparison Genuine Savings 80% (inclusive of fees) of land and improvement value Paid defaults up to $500 may be considered Not required Cash out not available on construction loans Debt consolidation not available on construction loans ABN registered for 24 months GST registered for 2 months Declaration of financial position plus two of the following: - 6 months business bank statements - 6 months BAS - Pepper Money accountant's letter Registered first mortgage on residential property Residential securities in categories and 2 with a maximum land size of 2.5 acres 0 30 years Variable interest rate Interest Only (IO) on balance of loan during construction period (maximum of 2 months followed by P&I) Loan converts to principal and interest (P&I) repayments upon completion of construction Available only post construction at no extra cost Available only post construction at no extra cost Single account only during construction period and up to four splits post construction Additional payments are allowed during both the construction (IO) phase and the P&I phase Fees can be capitalised up to 80% LVR (inclusive of fees) ATM Visa Debit Card (inclusive paywave) available only post construction at no extra cost facility (post construction only) PRODUCT GUIDE 4

6 Solutions PLUS (NEAR PRIME) Product Specifications Full Doc Full Doc PLUS Purchase or refinance of owner occupied properties Purchase or refinance of owner occupied or investment properties, and also includes: Interest Only loans Minimum Loan Size $50,000 $2,500,000 (up to 65% LVR) For all loan sizes refer to Product Comparison Genuine Savings (PAYG) Up to 95% for purchases (inclusive of fees) for loans up to $650,000 Up to 90% for all other loan purposes (inclusive of fees) for loans up to $850,000 (Syd/Melb Metro) or $800,000 (All other locations) Unlimited defaults, judgements and writs up to $,000 accepted (paid or unpaid) Unlimited defaults, judgements and writs > $,000, registered > 24 months (paid or unpaid) accepted Discharged from bankruptcy ( day accepted) Not required Cash out up to 90%^ LVR for acceptable purposes including renovations and business use Debt consolidation for an unlimited number of debts including payout of ATO debts Last 2 pay slips plus one of the following: Letter of employment, tax assessment notice, latest group certificate or 3 months bank statements Last 2 years tax returns; and Last 2 years tax assessment notices Residential securities in categories - 4 with a maximum land size of 25 acres (0 hectares) Vacant Residential Land only in categories and 2 with a maximum size of 2.5 acres (max 85% LVR and max loan size of $650,000) 0-40 years - Principal & Interest: 0-40 years - Interest Only: 0-30 years Principal and Interest Minimum manual redraw amount is $,000 Minimum online redraw is $50 Principal and Interest Interest Only 2 (maximum 5 years followed by Principal and interest) 3 Free additional payments are allowed Fees can be capitalised up to 95% LVR (inclusive of fees) for purchases only Fees can be capitalised up to 90% LVR (inclusive of fees) for all other loans ATM 5 facility Visa Debit Card (including paywave) ^No limit on cash out if LVR is < 85%. Cash out portion is limited to 20% of security valuation if LVR > 85%. PRODUCT GUIDE 5

7 Solutions PLUS (NEAR PRIME) Product Specifications Alt Doc Alt Doc PLUS Purchase or refinance of owner occupied properties Purchase or refinance of owner occupied or investment properties, and also includes Interest Only loans Minimum Loan Size $50,000 $2,500,000 (up to 65% LVR) For all loan sizes refer to Product Comparison Genuine Savings Up to 85% for purchases (inclusive of fees) for loans up to $650,000 Up to 80% for all other loan purposes (inclusive of fees) for loans up to $,500,000 Unlimited defaults, judgements and writs up to $,000 accepted (paid or unpaid) Unlimited defaults, judgements and writs > $,000, registered > 24 months (paid or unpaid) accepted Discharged from bankruptcy ( day accepted) Not required Cash out up to 80% LVR for acceptable purposes including renovations and business use Debt consolidation for an unlimited number of debts including payout of ATO debts ABN registered for 24 months GST registered for 2 months Declaration of financial position plus one of the following: - 6 months business bank statements - 6 months BAS - Pepper Money accountant s letter (not accepted on loan sizes > $.5m) Residential securities in categories - 4 with a maximum land size of 25 acres (0 hectares) 0-40 years - Principal & Interest: 0-40 years - Interest Only: 0-30 years Principal and Interest Minimum manual redraw amount is $,000 Minimum online redraw is $50 Principal and Interest Interest Only 2 (maximum 5 years followed by Principal and Interest) 3 Free additional payments are allowed Fees can be capitalised up to 85% LVR (inclusive of fees) for purchases only Fees can be capitalised up to 80% LVR (inclusive of fees) for all other loans ATM 5 facility Visa Debit Card (including paywave) PRODUCT GUIDE 6

8 Solutions PLUS Construction (NEAR PRIME) Product Specifications Full Doc Full Doc PLUS Purchase or refinance of land or property for the primary purpose of constructing up to two residential owner occupied properties or making structural changes to an existing owner occupied property. Purchase or refinance of land or property for the primary purpose of constructing up to two residential investment properties or making structural changes to an existing investment property. Minimum Loan Size $50,000 NSW/VIC property: $,250,000 (up to 80% LVR) 2 properties: $,500,000 (up to 80% LVR) All other locations or 2 properties: $800,000 (up to 95% LVR) For all loan sizes refer to Product Comparison Genuine Savings (PAYG) Up to 95% for purchases (inclusive of fees) of land and improvement value Up to 90% for all other loan purposes (inclusive of fees) of land and improvement value Unlimited defaults, judgements and writs up to $,000 accepted (paid or unpaid) Unlimited defaults, judgements and writs > $,000, registered > 24 months (paid or unpaid) accepted Discharged from bankruptcy ( day accepted) Not required Cash out not available on construction loans Debt consolidation not available on construction loans Last 2 pay slips plus one of the following: Letter of employment, tax assessment notice, latest group certificate or 3 months bank statements Last 2 years tax returns; and Last 2 years tax assessment notices Registered first mortgage on residential property Residential securities in categories and 2 with a maximum land size of 2.5 acres 0 30 years Variable interest rate Interest Only (IO) on balance of loan during construction period (maximum of 2 months followed by P&I) Loan converts to principal and interest (P&I) repayments upon completion of construction Available only post construction at no extra cost Available only post construction at no extra cost Single account only during construction period and up to four splits post construction Additional payments are allowed during both the construction (IO) phase and the P&I phase Fees can be capitalised for loans up to 95% LVR ATM 5 Visa Debit Card (including paywave) - available only post construction at no extra cost facility (post construction only) PRODUCT GUIDE 7

9 Solutions PLUS Construction (NEAR PRIME) Product Specifications Alt Doc Alt Doc PLUS Purchase or refinance of land or property for the primary purpose of constructing up to two residential owner occupied properties or making structural changes to an existing owner occupied property. Purchase or refinance of land or property for the primary purpose of constructing up to two residential investment properties or making structural changes to an existing investment property. Minimum Loan Size $50,000 NSW/VIC or 2 properties: $,000,000 (up to 85% LVR) All other locations or 2 properties: $800,000 (up to 85% LVR) For all loan sizes refer to Product Comparison Genuine Savings Up to 85% for purchases (inclusive of fees) of land and improvement value Up to 80% for all other loan purposes (inclusive of fees) of land and improvement value Unlimited defaults, judgements and writs up to $,000 accepted (paid or unpaid) Unlimited defaults, judgements and writs > $,000, registered > 24 months(paid or unpaid) accepted Discharged from bankruptcy ( day accepted) Not required Cash out not available on construction loans Debt consolidation not available on construction loans ABN registered for 24 months GST registered for 2 months Declaration of financial position plus one of the following: - 6 months business bank statements - 6 months BAS - Pepper Money accountant s letter Registered first mortgage on residential property Residential securities in categories and 2 with a maximum land size of 2.5 acres 0 30 years Variable interest rate Interest Only (IO) on balance of loan during construction period (maximum of 2 months followed by P&I) Loan converts to principal and interest (P&I) repayments upon completion of construction Available only post construction at no extra cost Available only post construction at no extra cost Single account only during construction period and up to four splits post construction Additional payments are allowed during both the construction (IO) phase and the P&I phase Fees can be capitalised for loans up to 85% LVR ATM 5 Visa Debit Card (including paywave) - available only post construction at no extra cost PRODUCT GUIDE 8 facility (post construction only)

10 Solutions PLUS (SPECIALIST) Product Specifications Full Doc Full Doc PLUS Purchase or refinance of owner occupied or investment properties Minimum Loan Size $50,000 $2,500,000 (up to 65%) $,000,000 (up to 70% LVR) Up to 95% for purchases (inclusive of fees) for loans up to $650,000 Up to 85% for all other loan purposes (inclusive of fees) for loans up to $750,000 Up to 80% (inclusive of fees) for loans up to $750,000 For all loan sizes refer to Product Comparison Genuine Savings Unlimited defaults, judgements and writs up to $,000 accepted Unlimited defaults, judgements and writs > $,000, registered > 2 months (paid or unpaid) < months mortgage arrears (within last 6 months) Discharged from bankruptcy ( day accepted) Not required Cash out up to 85% LVR for acceptable purposes including renovations and business use Additional PLUS allowances: Unlimited defaults, judgements or writs from credit event < 2 months (paid or unpaid) Unlimited mortgage arrears (within last 6 months) Cash out up to 80% LVR for acceptable purposes including renovations and business use (PAYG) Debt consolidation for an unlimited number of debts including payout of ATO debts Last 2 pay slips plus one of the following: Letter of employment, tax assessment notice, latest group certificate or 3 months bank statements Last 2 years tax returns; and Last 2 years tax assessment notices Residential securities in categories - 4 with a maximum land size of 25 acres (0 hectares) Residential securities in categories and 2 with a maximum land size of 25 acres (0 hectares) 0 40 years (Interest Only not available for terms > 30 years) Interest Only 2 (maximum 5 years followed by Principal and Interest) Principal and Interest Minimum manual redraw amount is $,000 Minimum online redraw is $50 3 Free additional payments are allowed Fees can be capitalised up to 85% LVR (inclusive of fees) ATM 5 facility Fees can be capitalised up to 80% LVR (inclusive of fees) Visa Debit Card (including paywave) PRODUCT GUIDE 9

11 Solutions PLUS (SPECIALIST) Product Specifications Alt Doc Alt Doc PLUS Purchase or refinance of owner occupied or investment properties Minimum Loan Size $50,000 $2,500,000 (up to 65%) $,000,000 (up to 70% LVR) Up to 85% for purchases (inclusive of fees) for loans up to $650,000 Up to 80% for all other loan purposes (inclusive of fees) for loans up to $,250,000 Up to 75% (inclusive of fees) for loans up to $750,000 For all loan sizes refer to Product Comparison Genuine Savings Unlimited defaults, judgements and writs up to $,000 accepted Unlimited defaults, judgements and writs > $,000, registered > 2 months (paid or unpaid) < months mortgage arrears (within last 6 months) Discharged from bankruptcy ( day accepted) Not required Cash out up to 80% LVR for acceptable purposes including renovations and business use Additional PLUS allowances (not available for ABNs registered 6-2 months): Unlimited defaults, judgements or writs from credit event < 2 months (paid or unpaid) Unlimited mortgage arrears (within last 6 months) Cash out up to 75% LVR for acceptable purposes including renovations and business use Debt consolidation for an unlimited number of debts including payout of ATO debts ABN registered for 6 months GST registered for 6 months Declaration of financial position plus one of the following: - 6 months business bank statements - 6 months BAS - Pepper Money accountant s letter (not accepted if ABN registered for < 2 months, on loan sizes > $.5m or on PLUS) Residential securities in categories - 4 with a maximum land size of 25 acres (0 hectares) Residential securities in categories and 2 with a maximum land size of 25 acres (0 hectares) 0 40 years (Interest Only not available > 30 years) Interest Only 2 (maximum 5 years followed by Principal and Interest) Principal and Interest Minimum manual redraw amount is $,000 Minimum online redraw is $50 3 Free additional payments are allowed Fees can be capitalised up to 85% LVR (inclusive of fees) ATM 5 f acility Fees can be capitalised up to 75% LVR (inclusive of fees) Visa Debit Card (including paywave) Refer to page 7 for additional notes PEPPER HOME LOAN PRODUCT GUIDE 0

12 Product Comparison Essential (PRIME) Easy (NEAR PRIME) Full Doc Alt Doc Full Doc Alt Doc Max LVR Up to 95% (purchase) Up to 90% (refi nance) Up to 80% Up to 95% (purchase) Up to 90% (refinance) Up to 85% (purchase) Up to 80% (refinance) Interest Only (maximum 5 y ears) Construction Loans (PAYG) Last 2 pay slips plus one supporting document* 0-30 y ears PLUS only Standard/PLUS loans: 0-40 years Construction loans: 0-30 years Last 2 pay slips plus one supporting document* PLUS only Last 2 years tax returns plus last 2 years tax assessment ABN - 24 months GST - 2 months Declaration of financial Position plus two supporting documents^ Last 2 years tax returns plus last 2 years tax assessment ABN - 24 months GST - 2 months Declaration of Financial Position plus one supporting document^ Impairment up to $,000 (defaults, judgements and writs) (paid defaults up to $500 considered) Impairment < 2 months (defaults, judgements and writs) Impairment > 2 months (defaults, judgements and writs) Unlimited when registered > 24 months Mortgage Arrears Standard/PLUS loans: Up to 90% LVR Construction loans: Not available Standard/PLUS loans: Up to 80% LVR Construction loans: Not available Standard/PLUS loans: Up to 90% LVR Construction loans: Not available Standard/PLUS loans: Up to 80% LVR Construction loans: Not available Loan size limits (applicable to residential securities in categories and 2) Up to 55% Up to 60% Up to 65% Full Doc (including P LUS) $2m $2m $2m Alt Doc (including PLUS) $2m $2m $2m Essential Full Doc Construction (including PLUS)*** $.5m $.5m $.5m Alt Doc Construction (including PLUS)*** $.0m $.0m $.0m Full Doc (including P LUS) $2.5m $2.5m $2.5m Easy Alt Doc (including PLUS) $2.5m $2.5m $2.5m Full Doc Construction (including PLUS)*** $.5m (2 proper ties) $.25m ( property) $.5m (2 properties) $.25m ( property) $.5m (2 properties) $.25m ( property) Alt Doc Construction (including PLUS)*** $.0m $.0m $.0m Full Doc $2.5m $2.5m $2.5m Ad vantage PLUS $m $m $m Alt Doc $2.5m $2.5m $2.5m PLUS $m $m $m *Supporting PAYG Documentation includes - Letter of employment, Tax assessment notice, Latest group certificate or 3 months bank statements ***Restricted to $800,000 for all locations outside of NSW and VIC PRODUCT GUIDE

13 Advantage (SPECIALIST) Full Doc Full Doc P LUS Alt Doc Alt Doc PLUS Up to 95% (purchase) Up to 85% (refi nance) Up to 80% Up to 85% (purchase) Up to 80% (refinance) Up to 75% 0-40 years Last 2 pay slips plus one supporting document* Last 2 years tax returns plus last 2 years tax assessment ABN - 6 months GST - 6 months Declaration of Financial Position plus one supporting document^ (unlimited when due to credit event) (unlimited when due to credit event) (< month within last 6 months) (unlimited within last 6 months) (< month within last 6 months) (unlimited within last 6 months) Up to 85% LVR Up to 80% L VR Up to 80% LVR Up to 75% LVR Up to 70% Up to 75% Up to 80% Up to 85% Up to 90% Up to 95% $2m $.5m $.5m (Syd/Melb Metro) $m (All other loc ations) $850k $750k $650k $2m $.5m $m $.5m $.5m $.5m $.5m (2 proper ties) $850k ( property) $.2m (2 properties) $850k ( property) $.2m (2 properties) $850k ( property) $.0m $.0m $.0m $2m $.75m $.5m $m $850k (Syd/Mel Metro) $800k (All other loc ations) $650k $2m $.75m $.5m $650k - - $.5m (2 properties) $.25m ( proper ty) $.5m (2 properties) $.25m ( property) $.5m (2 properties) $.25m ( property) $.2m (2 properties) $.0m ( property) $.0m (2 properties) $850k ( property) $.0m (2 properties) $850k ( property) $.0m $.0m $.0m $.0m - - $2m $.75m $.25m $750k $750k $650k $m $750k $750k $2m $.75m $.25m $650k - - $m $750k ^Supporting Self-Employed Documentation includes - 6 months business bank statements, 6 months BAS or Pepper Money accountant's letter. Pepper Money accountant s letter not available for use on Pepper Near Prime loans > $.5m, Pepper Specialist loans > $.5m, Pepper Specialist loans where ABN has been registered for < 2 months or Specialist PLUS. PRODUCT GUIDE 2

14 Acceptable Employment & Income Employment Type Income Definition Allowance* Full or Part-Time or Contract (PAYG) Base salary, allowances and shift penalties Prime ^ Minimum 2 months continuous employment within same industry, or Minimum 6 months employment with current employer Near Prime or Specialist No minimum time frame required 00% Casual or Second Job Commission/bonuses (paid at least quarterly) and Overtime Self-Employed** Prime or Specialist PLUS Minimum 2 months continuous service with current employer Near Prime or Specialist Minimum 6 months continuous service with current employer (with a minimum of 8 months continuous employment within the same industry) Prime Commission and Bonus - 00% if confirmed as received for the last 2 years from current employer. The average of the last 2 years is to be used in the servicing assessment Overtime - 00% if a condition of a borrowers employment, 50% if confirmed as being regular for 6 months from the same employer Near Prime or Specialist Must be demonstrated over the last 2 months Acceptable forms of income including Net Profit Before Tax, Directors wages/salaries, Depreciation, Interest on debts being refinanced and Superannuation contribution in excess of 9% Full Doc Minimum self-employed period of 24 months Alt Doc Prime & Near Prime Minimum self-employed period of 24 months Specialist and Specialist PLUS Minimum self-employed period of 6 months 00% 00% 00% Centrelink Pensions Centrelink Pension received (e.g. aged, invalid etc)^^ 00% Superannuation Pension or annuities 00% Rental Income Rental income to be received post settlement 80% Housing Allowance Allowance provided by employer or government bodies (not accepted on Prime) 00% Interest and Dividends** Forms of Guaranteed Income Income from cash deposits held or share portfolio. 2 years consistency required and capital gains on sale of assets is not acceptable Inheritance and trust beneficiaries etc (not accepted on Prime) 00% If a court order or a child support agency agreement exists or proof of receipt for a period of 3 months continuous payments with no age restrictions. 00% Child Support Payments Family Payments The following evidence of receipt of payments is required: Proof of receipt of maintenance for a continuous period of at least 3 months by way of savings statements; or Child Support Agency letter to confirm the maintenance agreement Only accepted on Prime where the benefit is available for the next five years Family assistance payment for dependent children regardless of age (Part A, Part B and parenting will be used, rental, sickness and pharmaceutical allowances are not to be used) Only accepted on Prime where the benefit is available for the next five years 00% 00% Fully Maintained Company Car Car Allowance Maximum of $5,000 can be added to the Gross Taxable Income Up to $5,000 Prime 00% if a condition of a borrowers employment Near Prime or Specialist Allowed provided it is a permanent part of income and is applied to car loan or lease payments. 00% is applied to the shortfall of car loan or lease repayments. A letter from the employer stating the condition of the allowance is required for verification 00% ^Where the borrower is on probation, application can be considered based on the strength of the borrower s overall position ^^Applicant s that have the majority of their income from Centrelink and Social Benefit Income can only qualify for a maximum 75% LVR on the Pepper Specialist Full Doc product *The % of income allowed is based on the borrower being able to meet the Acceptable Employment Type policy **An average of the last 2 years income is used for servicing unless the most recent year is less than the average in this case the most recent year is used PRODUCT GUIDE 3

15 Servicing All loans to be serviced at a benchmark rate of 7.20% or 2.00% above the applicable rate, whichever is the higher. Where the total LVR exceeds 90%, serviceability must be a minimum of.25%. Applicants that have the majority of their income from Centrelink and Social Benefit Income can only qualify for a maximum 75% LVR on the Pepper Advantage Full Doc and serviceability must be a minimum of.25%. Refer to Pepper s serviceability calculator at pepper.com.au/broker Responsible Lending Pepper is committed to responsible lending. We recognise the importance of working with our valued distribution partners to ensure we all play our part in conducting business in an ethical and responsible manner. To find out more about Pepper s approach to responsible lending visit All mortgage applications must clearly demonstrate a financial benefit to the applicant(s). Pepper Will Lend To: Private partnerships, companies, trustees (maximum 6 borrowers) Vacant land (on Pepper Essential and Easy Full Doc only for residential properties in categories and 2 to a maximum land size of 2.5 acres) Additional Notes Refer to Pepper Money s Postcode Search in Tools section on pepper.com.au/broker for category lending limits 2 Additional terms and conditions apply to Interest Only loans which are set out in the customer s loan agreement. Principal and Interest repayments are calculated on the residual loan term 3 Lending Areas Based on postcode listing: Category 95% Category 2 95% Category 3 75% Category 4 70% Additional Lending Policies Will Not Lend On: Rural properties, commercial properties, relocatable and mobile homes, serviced apartments, studio apartments, resort complexes, retirement villages, bedsits and heritage listed buildings Maximum Exposure Limits: The maximum exposure per applicant is $4,000,000 for Near Prime/Specialist, $2,500,000 for Prime (Sydney/Melbourne Metro), and $2,000,000 for Prime (all other locations) The maximum exposure per security is $,500,000 for Prime and Near Prime Security Titles Considered: Torrens, old system, community, crown lease Maximum three securities per development or maximum exposure not more than 25% Units: Restriction on units within high density post codes apply. Unit blocks cannot comprise of more than 35 units when located within a high density post code (see website for locations) < year old 75% on Near Prime and Specialist Non-Conforming and Private or Solicitor Loans: Will refinance non-conforming, private and solicitor loans Portability: Pepper offers portability on all new loans. Subject to conditions - Go to Documents and forms section on pepper.com.au/broker for details 4 Refer to LPF Calculator in Tools section on pepper.com.au/broker 5 When Visa Debit Card is selected - Free access at Westpac Group ATMs including St George, Westpac Bank of Melbourne and Bank of SA 6 Pepper Money is not liable for any taxation related assumptions or representations associated with the negative gearing PEPPER HOME LOAN PRODUCT GUIDE 4 Negative Gearing: Negative Gearing is accounted for during the loan assessment 6 Mortgage Statements: 6 months mortgage statements required on any owner occupied debt being refinanced 6 months mortgage statements required on any investment loan being refinanced 2 months mortgage statements required on refinancing of nonconforming loans Additional Advance The loan must have settled at least 3 months for Prime and 6 months for Near Prime/Specialist prior to the application for further borrowing The loan must be current with no dishonoured payments within the 3 months for Prime and 6 months for Near Prime/Specialist prior to application Minimum amount $0,000 $395 Establishment fee or $00 if broker orders valuation % Mortgage Risk Fee (on Additional Advance amount only) For Prime loans, Lender Protection Fee (LPF) payable is LPF on total amount less LPF already paid Legal Fees of $50 plus disbursements are payable When an application for an Additional Advance is received, customer and security information will need to be updated. The documentation that will be required is as follows: New fully completed Pepper Money Additional Advance Application Form Updated income evidence, including pay slips or Alt Doc Income Declaration A new Veda Advantage report will be ordered A new Full Valuation will be requested The Building Insurance figure will be updated If there is any new adverse credit information a request for further details will be made Funds will be disbursed by a Pepper panel Solicitor after receipt of all security documents

16 Additional Lending Policies - Construction Loans Construction is required to commence within 3 months of settlement. Construction is required to be completed within 5 months of settlement. Borrowers are required to use their full financial contribution at settlement i.e. at purchase of vacant land. This contribution is to be based on the LVR of the on completion valuation. For owner occupied construction, if the borrower is a company, we require the director(s) of the company to reside in the completed property. For owner occupied construction, if the borrower is a trustee, we require the beneficiary(ies) of the trust to reside in the completed property. Construction Documentation Prior to the first progress payment being processed, Pepper Money requires the following documents: Copy of executed Fixed Price (inclusive of GST) building contract from a licensed builder (not owner builder) executed in standard HIA format); Council approved plans and specifications; Evidence of Construction All Risk Insurance (including public liability) from the builder with a Certificate of Currency showing Pepper Finance Corporation Limited as mortgagee; A copy of the Builder s insurance under the Home Building Compensation Fund (previously Home Warranty Insurance) covering the subject property during the course of construction; Certificate of registration of the builder; and Builder s bank account details on their letterhead. Valuations On Completion Valuation required prior to loan approval Registered Valuer s reports are mandatory from Pepper Money s nominated panel Initial valuation based on vacant land and council approved plans / council building consents and specifications Initial valuation is at the borrower s expense Progress Payments Pepper Money to sight and approve the Progress Payment schedule prior to settlement. Progress payment requests are to be made using Pepper Money s Progress Payment Authority form. This must be signed by all Borrowers. A copy of the builder s invoice is required to accompany each Progress Payment Authority form. Progress payments are paid into the builder s bank account via EFT - within 24 hours of Pepper Money receiving valuation and signed PPA. The Valuer who competed the on-completion Valuation is to complete all property inspections. The cost of the progress inspections is at the borrower s expense (at cost and organised by Pepper Money) A minimum of 4 progress inspections will be required by Pepper Money. Typically this will be a Slab, Frame or Roof, Lock-up and Practical Completion stages. This remains at the discretion of Pepper Money. Final Payment Valuer s final progress inspection report is to advise current valuation figure and confirm all works have been completed as per plans and specifications. Prior to release of the final progress payment: Evidence of building insurance with Pepper Finance Corporation Limited noted as first mortgagee, for an amount not less than replacement value as advised by Pepper; Copy of completion certificate (or equivalent) from local council (not applicable for SA or WA). Account Statements Monthly (statements produced 5th of each month during IO construction period, followed by half yearly thereafter). PRODUCT GUIDE 5

17 Home loan scenarios New broker accreditations New applications and pre-settlement enquiries Settlement enquiries - funding admin@mortgage-mart.com.au Level 3, 05 Upton Street, Bundall QLD 427 call visit mortgage-mart.com.au Mortgage Mart of Australia, Australian Credit Licence Number ,