Pepper Money Prime Construction Loan - Prime Alt Doc
Variable rateOffsetRedraw
Our construction home loan options provide interest only repayments during the construction period (max 18 months) with access to our online loan portal and the freedom to make additional repayments. 100% interest offset sub-account, redraw and VISA debit card+ access (monthly fees apply) are available after the construction period has been completed.
- Interest rate a year, from
- 8.59%
- Comparison rate
- 9.00%
- Upfront fees
- $1,329
- Annual fee
- Not published
- Monthly fee
- $10
Monthly repayment
$600,000 over 30 years
What it would cost
At the lowest rate of 8.59% (variable, live in, interest only), including the monthly fee. The rate you are offered depends on your deposit and the loan you choose, and upfront fees are not included.
- Monthly repayment
- $4,305
- Total repayments
- $2,149,800
- Interest and monthly fees
- $1,549,800
Rates
Every rate Pepper Money publishes for this loan. LVR is the loan as a share of the property's value: 80% for a 20% deposit.
| Rate | Property | Repayments | LVR | Interest rate | Comparison rate |
|---|---|---|---|---|---|
| Variable | Live in | Interest only | Up to 55% | 8.59% | 9.00% |
| Variable | Live in | Interest only | 55% to 65% | 8.79% | 9.00% |
| Variable | Live in | Interest only | 65% to 70% | 8.79% | 9.00% |
| Variable | Live in | Interest only | 70% to 75% | 8.79% | 9.00% |
| Variable | Live in | Interest only | 75% to 80% | 8.99% | 9.20% |
| Variable | Live in | Interest only | 80% to 85% | 9.59% | 9.80% |
| Variable | Investment | Interest only | Up to 55% | 8.59% | 9.00% |
| Variable | Investment | Interest only | 55% to 65% | 8.79% | 9.00% |
| Variable | Investment | Interest only | 65% to 70% | 8.79% | 9.00% |
| Variable | Investment | Interest only | 70% to 75% | 8.79% | 9.00% |
| Variable | Investment | Interest only | 75% to 80% | 8.99% | 9.20% |
| Variable | Investment | Interest only | 80% to 85% | 9.59% | 9.80% |
Comparison rates are for an example loan of $150,000 over 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Fees and features
Fees
- Upfront fees
- $1,329
- Annual fee
- Not published
- Monthly fee
- $10
Features
- Offset account
- Yes
- Redraw
- Yes
- Highest LVR
- 85%
- Loan amount
- From $100,000
How it compares
Against the other home loans we compare, for a home you live in with a 20% deposit. Typical means the middle half of them.
Upfront fees
$1,329
Typical upfront fees are $600.
Smallest deposit
15%
Most loans need at least 10% of the price.
Pros and cons
Pros
- An offset account. Money in it is taken off your balance when interest is worked out, so your savings and pay cut the interest while staying easy to reach.
- Extra repayments. Paying more than the minimum pays the loan off sooner and cuts the interest you pay.
- Redraw. You can take back extra repayments later if you need the money.
- No early repayment fee listed. You can pay the loan off early, or refinance, without a penalty. Check the terms to be sure.
- Interest only available. Some investors use it to keep repayments down for a few years, though the balance doesn't fall in that time.
Cons
- Higher upfront fees. $1,329, above the typical $600, which adds to the cash you need at settlement.