Offer removes LMI, LPF, and risk fees on prime loans up to 90% LVR
Non-bank lender Pepper Money has announced a new promotion aimed at reducing upfront costs for borrowers by waiving several common lending fees on eligible prime full documentation residential property loans.
The Prime Time Flex Bomb offer, available until June 4, removes lenders mortgage insurance (LMI), lenders protection fees (LPF), and risk fees for loans up to 90% loan-to-value ratio (LVR). Loans between 90.01% and 95% LVR will attract a flat 3% lender protection fee.
Barry Saoud (pictured above), general manager of mortgages and commercial at Pepper Money, said the offer is designed to support affordability and provide more accessible lending options.
“We are excited to introduce the Prime Time Flex Bomb promotion, which reflects our commitment to providing flexible and helpful loan options,” Saoud said. “By eliminating LMI, LPF, and risk fees, we are making homeownership and property investment more accessible and affordable for a broader range of clients.”
Pepper Money, which had its “Strong” rankings as a residential loan servicer in both the subprime and prime categories reaffirmed by S&P Global Ratings, said its promotion applies to a range of borrower types including first-home buyers, investors, refinancers, and owner-occupiers. There are no profession-based eligibility restrictions.
Typically, LMI costs can range from 1% to 5% of the loan value, depending on LVR and lender policies. For a $1 million loan with a 90% LVR, Saoud said borrowers could save up to $22,000. For investors, the savings could be as high as $25,000.
The promotion also increases borrowing capacity by allowing loan sizes up to $1.5 million at 90% LVR, exceeding the $1 million cap typically offered by many major banks for similar deals.
Brokers can also access educational resources including webinars, case studies, and quick guides to help communicate the benefits of the offer. Saoud encouraged brokers to consider total cost rather than focusing solely on interest rates.
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