Pepper Self Employed Advantage 1 Year Introduction Rate (up to 70 percent LVR)

Pepper Home Loans stunned the home loan industry on February 28, 2011 when it announced that it was discontinuing its Deferred Establishment Fee on all its home loans including the Pepper Self Employed Advantage 1 year Introduction Rate (up to 70% LVR) home loan. This move was in direct response to the Australian Governments stated intention to legislate against lenders current practice of charging exit fees on their mortgages. A legislative move intended to bring more competition into the home loan industry by making it easier for home buyers to switch home loans if dissatisfied with their current lender. Pepper had earlier announced it was also now offering a 0.5% introductory discount off the interest rate for all its self-employed advantage loans, including the up to 70% LVR home loan.

Pepper Home Loans has designed the Self Employed Advantage 1 year Introductory Rate (up to 70% LVR) specifically for self-employed home buyers including small business owners who were having difficulty putting together an acceptable home loan application in the traditional manner as regard to income documentation. The loan is therefore designed for use primarily in property transactions but also for debt consolidation and the raising of capital for their businesses. The new discounted rate will be effective for the first 12 months of the loan and in addition the mortgage will not require Lenders Mortgage Insurance.

The interest rate on the Pepper Self employed Advantage 1 Year Introduction Rate (up to 70% LVR) is now 8.49%. This gives it a comparison rate of 9.35% on a $100,000 home loan taken out over a term of 30 years. The loan is accessible to self employed home buyers and small business owners who have been in business for a minimum of two years. You must however have a good credit history and a proven record of being able to manage your finances responsibly. Finance can be approved for a wide variety of reasons besides home purchase such as the purchase of much needed business equipment and payment of Australian Taxation Office (ATO) debts.

Pepper Self employed Advantage 1 Year Introduction Rate (up to 70% LVR) home loans require the applicant to be able to produce proof of having held an Australian Business Number (ABN) for at least two years immediately prior to applying. Alternatively an Income Declaration of Financial Position plus the last 6 months business bank statements. No Business Activity Statements (BAS) will be required.

Other Pepper Self Employed Advantage 1 Year Introduction Rate (up to 70% LVR) home loan details are as follows:

• The loan can be taken out for a minimum term of 10 years to a maximum term of 40 years.
• The minimum amount you are able to borrow is $100,000 and the maximum up to 85% LVR is $1,000,000.
• Repayments can be made on the basis of interest only from one year to five years after which you must pay both interest and principal.
• Payments are accepted either fortnightly or monthly when you are paying both interest and principal but restricted to monthly when repaying on an interest only basis.
• You can make any number of additional repayments, whenever you have the spare money available.
• There is a redraw facility when the loan is being repaid on an interest and principal basis with the minimum redraw set at $1000.
• A split loan facility is also available with a minimum of $50,000.

Pepper Self Employed advantage 1 Year Introduction Rate (up to 70% LVR) home loan fees and charges

There is a Discount Interest Adjustment fee to pay if you pay the mortgage out prior to it running for four years. This fee is calculated by multiplying the loan amount that is to be repaid early by the difference in the standard interest rate and the discounted rate. You then divide this figure by 365 (representing the days in the year) then you multiply that figure by the number of days the loan had the benefit of the discount. Other fees and charges are:

• An establishment fee of $995 that includes the cost of one standard valuation.
• An additional valuation fee of is payable for any additional securities that may be put up to secure the loan.
• Legal fees of approximately for legal disbursements.
• Title insurance premium of $300 for valuations under $400,000 and $450 for valuations above $400,000.
• A discharge fee of $250 for the discharge of each account.
• A monthly fee of $15.
• There are no additional security fees other than the extra valuation costs.
• There is no guarantee fee.
• There is no split loan fee.
• There will however be various government fees and levies to pay.

The Pepper Self employed Advantage 1 Year Introduction Rate (up to 70% LVR) home loan, is part of a ground breaking group of Pepper mortgages that were first to respond to the governments call for lenders to discontinue charging exit fees, with their discontinuation of their Deferred Establishment fee.

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