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Pepper Money launched a limited-time offer that allows borrowers to fix their mortgage for two years at current variable rates with no break costs.

According to the non-bank lender, the unique fixed-rate product is open for new application for a limited time. Here are the features of the product:

  • Borrowers can fix a two-year loan option at current variable interest rate (starts at 5.59% p.a. with a comparison rate of 5.77% p.a.).
  • The fixed-rate product has no break fees.
  • Borrowers are able to make unlimited additional repayments.
  • Rate lock is available for up to 90 days, but fees apply.
  • The option will be available on Prime, Near Prime, Specialist (Full doc and Alt Doc).
  • Borrowers can create up to four loan splits, with the ability to take advantage of an offset sub-account.

Pepper Money general manager for mortgage and commercial Barry Saoud said this offer is designed to provide customers with peace of mind in two ways: they will be able to lock in a competitive interest rate for two years and they have the flexibility to switch to a variable interest rate at any time without having to pay break fees.

“We know many Aussies are anxious about how they would cope and are looking for greater certainty given the potential for further rate rises on top of the ten RBA cash rate increases already announced,” he said.

Connective Home Loans head Michael Goerner said the product is an innovation that places brokers to “deliver real solutions” to borrowers.

“For all those clients rolling off fixed rates that are looking for next steps, this is a really good solution and with no break costs it is an absolute safe bet each way, rates go up and you are sheltered, rates go down and you are okay to jump off and ride the rate slide with no penalty,” he said.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
Online ExclusiveUp to $4k cashbackINCLUDES NOV RBA RATE INCREASE
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
Online ExclusiveUp to $4k cashbackINCLUDES NOV RBA RATE INCREASE

Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
Variable
More details
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMEYM. (T&Cs apply)

Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMEYM. (T&Cs apply)
Variable
More details

Variable Rate Home Loan – Refinance Only

    Important Information and Comparison Rate Warning

    Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of December 2, 2023.

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    Photo by BigC Studio on Canva.