Couple thinking about refinancing their home loan
Couple thinking about refinancing their home loan

'Bad' credit score? We might have some good news...

Getting a home loan with a 'bad' credit score

Don't let a below-average or poor credit score hold you back. Life can throw unexpected hurdles; from missing a few bills, to a full-on default, sometimes these things happen. But even after you get back on track, some banks may hold this against you for years to come. As a non-bank lender we see things differently.

We try to look at options for each of our customers. We want to help you achieve your goals, even if you have a poor credit history. Talk to us about your situation and we'll see how we could help with your home loan application.

Why Pepper Money?

We're fast: Credit decision within 1 working day

We're flexible: We'll always try to give you options

We're accessible: Talk through your situation with us


Pepper Money refinancing trio
  • Cash-out, including for renovations (refinances only)
  • Borrow up to 85%* of the property value 
  • Deal directly with a decision-maker 
  • Get started with 6 months' business banking documentation
  • We look beyond just your credit score 
  • Alternative documentation applications considered

Do I have a 'bad' credit score?

There's actually no such thing as a 'bad' credit score. What you actually may have is a lower-than-average credit score, which may limit options when applying for credit or a loan. 

If you’ve had issues on your credit record, then it’s important to keep your payments up-to-date and understand what happened in the past. As part of our responsible lending assessment of your application, we'll ask the questions that matter and look to uncover the meaning behind any poor credit history. This allows us to make an informed decision based on your objectives and requirements, and ability to repay a loan with us. We'll ask about your situation and uncover why you may have missed payments or had issues with credit in the past. We'll then do our best to see what options could work for your situation.

Any loan applications are subject to the Pepper Money team completing responsible lending checks and considering your/every customers individual circumstances.

Your Loan, Your Rate

Discover our flexible approach to home loans. We look at a range of factors (including your financial situation, credit history and property) to provide eligible borrowers with an interest rate estimate. Talk to a lending specialist to find out where you stand.

Crunch the numbers with our calculators

Learn about our home loan options

Fixed term home loan

Flexible credit assessment

We'll consider certain defaults, writs or credit events.  We'll look to understand your situation to help find a way forward if we can.
Split home loan

Alt Doc application options

We accept alternative documentation (alt-doc) applications, meaning you could apply with as little as 6 months business bank statements if self-employed~ .
Unlimited extra repayments home loan option

Non-metro lending

From North to South, we're here to help - even if your next property is outside of major regional areas. 
Interest rates

Floating interest rates from 8.59% p.a. to 12.89% p.a.

2-year fixed interest rates from 7.84% p.a. to 12.14% p.a.

3-year fixed interest rates from 7.54% p.a. to 11.84% p.a.

Until 31 May 2024, you could get an additional 0.10% p.a. reduction on your fixed rate at settlement^.

The actual interest rate will depend on the borrower's circumstances and the information verified during the assessment of a loan application.

Loan purpose
Purchase or refinance an owner-occupied or investment property. Debt consolidation available when refinancing.
Maximum LVR
Borrow up to 85%* of the property value.
Loan amounts
From $100,000 up to $2,500,000 subject to product, region, eligibility criteria and lending limits.
Loan terms
10 - 30 years - subject to eligibility criteria.
Interest rate options
Choose a floating rate or a 2 or 3-year fixed rate period.
Repayment options
  • Principal and Interest, or
  • Interest only (up to 5 years - followed by Principal and Interest payments for the remainder of the loan term).

For owner-occupied loans, interest only is limited to 50% of  your total loan amount.

Repayment frequency
  • Weekly, fortnightly or monthly for Principal and Interest loans
  • Monthly for interest-only loans


Extra repayments
Unlimited extra payments are permitted, free of charge for floating interest rates. For fixed rate loans, extra payments are free of charge up to $10,000 p.a.
See fees and charges for more information.

Minimum online redraw is $50, and minimum manual redraw is $1,000. 

You'll need at least 1 floating loan split to transact via redraw.

Redraw is not available during any fixed interest rate loan term. 

Loan splits
Up to 4 splits are available.
Fees and Charges

Establishment fee: $749 inclusive of  legal and settlement fees.

Discharge admin fee: $500

Monthly admin fee: From $10-$15 per loan split, depending on product.

Break costs: Break costs are payable on early repayment of more than $10K p.a. on a fixed rate loan, or switching to a different interest rate during the fixed rate period.

View all fees and charges »


A default interest rate, which is your current interest rate plus 2% p.a. may be charged on each amount that is either overdue or over the limit of your home loan.

Any loan applications are subject to the Pepper Money team completing responsible lending checks and considering your/every customers individual circumstances.

Don't forget to read this bit...

Information and interest rates are correct as at 23 April 2024 and subject to change at any time. Offers and promotions may be continued, withdrawn, or changed at any time without notice.

* Offer applies to ‘New Build’ Prime, Near Prime and Specialist Full Doc home loan applications with LVR >80-85%. Available for Metro security locations only. A New Build is a property where the borrower has made a financial and legal commitment to buy in the form of a purchase contract with the builder, prior to the property being built or at an early stage in construction. This could be traditional ‘construction lending’ where the loan is disbursed in staged payments, or it could be a loan to finance the purchase of a property, which will be settled (in one payment) once the build is complete Or a newly-built entire dwelling completed less than six months before the mortgage application. The dwelling must be purchased from the original developer (the contract to buy at completion can be agreed while the building is still being constructed).

^Interest rate promotion (Promotion) applies for new fixed rate home loan applications. Applications must be submitted between 12:00 am NZST 23 April 2024 and 11:59 pm NZST 31 May 2024, and must settle by 11:59pm NZST 30 June 2024. Applications lodged after the Promotion period will be offered the current interest rates then applicable. This Promotion is subject to change and may be varied or withdrawn at any time. 

You are protected by responsible lending laws. Because of these protections, the recommendations given to you about home loans are not regulated financial advice. This means that duties and requirements imposed on people who give financial advice do not apply to these recommendations. This includes a duty to comply with a code of conduct and a requirement to be licensed.

Information provided is factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licenced financial or tax adviser.

All applications are subject to credit assessment, loan eligibility criteria and lending limits. Terms, conditions, fees and charges apply. The actual interest rate will depend on the borrower’s circumstances and the information verified during the loan application assessment.

Get in touch with a Lending Specialist

Tell us about your situation. The more we learn, the better we can help.