The new rate starts as low as 5.99% pa (comparison rate of 7.85% pa), which is less than the current cash rate of 6.25%. The 2% discount applies across all of Pepper's non-conforming mortgages, from 'Pepper Clean' through to 'Pepper D' and even to its 'Pepper Easy Low-Doc' mortgage products.
John Empey, CEO of Pepper Homeloans, said the discounted interest rates
will result in significant savings for borrowers over the first 12 months of their loan.
"A borrower with a $300,000 Pepper Homeloans mortgage receiving the 2% promotional discount could save up to $500 in loan repayments each month, a substantial saving when added up over a 12 month period," he said. "This promotion is a great example of how Pepper is delivering products and promotions that give a range of borrowers a fair go in the Australian mortgage market," he said.
Unfortunately, such a low rate is too good to last. The 2% discount is only available from 1 February until 30 April 2007.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan