The new rate starts as low as 5.29% p.a. (or comparison rate of 7.14% p.a.), which is less than the current standard industry rate for non-conforming and low doc mortgages. 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. "There is a view in the mortgage market that non-conforming home loan borrowers have to pay high rates," said Duco Sickinghe, director of sales and marketing for Pepper Homeloans. "Pepper is looking to change that. We consider every home loan application on its individual merits, and we're further encouraging customers with a discount that will really help them from their very first payment." Unfortunately, such a low rate is too good to last. The 2% discount only applies to the first year of the loan. However, to offset this, Pepper has a 1% loyalty bonus every third year of the loan, where Pepper will pay direct to the borrower a cash payment equal to 1% of their outstanding loan balance, subject to the borrower maintaining good conduct on their account for the prior 12 months. Once the borrower qualifies for their first bonus, they are eligible for another 1% bonus in three years time subject to the same conditions.