ASX-listed non-bank lender goes all in on low-deposit lending
Pepper Money has unveiled a suite of new low-deposit lending products, including a 95% loan-to-value ratio (LVR) alt-doc loan, making Pepper Money the first mainstream non-bank lender to do so.
ASX-listed Pepper Money announced the changes on Tuesday, expanding its lending low-deposit capability across metropolitan and regional Australia.
Alt-doc, or alternative documentation, lending lets borrowers verify their income using documents other than standard tax returns – such as accountant declarations or business activity statements.
It is increasingly becoming a viable pathway to home ownership for self-employed Australians and business owners whose income doesn't fit traditional PAYG verification.
Barry Saoud (pictured), Pepper Money's chief executive of mortgages and commercial lending, pointed to a broader shift toward non-banks. "2025 industry research shows 70% of brokers said they sent more loans to non-banks in the last 12 months, which is up from 67% in 2024, driven by demand for flexibility, speed and the ability to support more complex borrowers.”
More low-deposit products announced
Pepper Money has also made a move into the 2% deposit space previously occupied by just a handful of alternative lenders, including Skip Loans.
A maximum LVR of 98% (including the Lenders Protection Fee), includes high-density units, with loan sizes tripled to $3 million, while 80% LVR loans now go up to $5 million. Changes apply across Prime and Near Prime Clear, and extend to White Label partnerships.
"This isn't about changing who we lend to. It's about expanding what's possible for Australians by giving brokers more flexibility to solve a wider range of customer scenarios," Saoud said.
John Lafferrairie, head of white label at Finsure Loans, welcomed the move for regional borrowers. "Regional Australians don't always fit neatly into traditional lending models... Expanding lending options across more locations means brokers have greater flexibility.”
The changes were announced under The Let's Go Lender, Pepper Money's new broker campaign.
