What is a non-conforming home loan?
We understand that in real life everyone’s situation is different - not everyone will tick all of the boxes required by the banks and other lenders. Non-conforming home loans offer an alternative route to home loan success for these borrowers.
What's a non-conforming loan?
A non-conforming home loan is a home loan available to borrowers who don’t conform to the major banks' standard loan criteria. It is the opposite of what’s known as a ‘prime’ home loan.
Who is a non-conforming loan for?
Non-conforming home loans are typically used by home buyers who don’t tick all of the traditional boxes required to apply for a prime home loan. There are a several reasons a borrower may decide to apply for a non-conforming loan - perhaps they’re self-employed, don’t have the required proof of income, or have a few dents in their credit record.
Am I a non-conforming borrower?
Non-conforming borrower
If you’ve ever been declined for a home loan because you're self-employed, don't have up to date financial records or have a poor credit history, then your home loan application may be referred to as 'non-conforming' or ‘specialist’.
We understand that if you’ve been rejected for a home loan as a ‘non-conforming’ borrower, then it can be disappointing – but all is not lost. We understand that real life happens, and our flexible and individual approach has helped provide an alternative approach to borrowers since 2000.
We could help borrowers in the following circumstances:
- Self-employed - unable to show proof of income as you've recently started a business
- Poor credit history - previously declared bankrupt or a history of credit defaults
- Have an ATO debt you need to pay out
- Have a solid income, but not much of a deposit
- Have a deposit but it’s an inheritance or a gift
- Have non-standard income - work part-time or are a contractor, or have irregular income as a business owner
- Have multiple debts to consolidate such as personal loans, credit cards or business debt
- You’re nearing retirement and the major lenders won’t have a bar of you
We're here to help
While we don’t offer low doc loans, we can help with alternative documentation (Alt Doc) loans - a home loan that requires alternative documents to a standard ‘prime’ loan.
Whether you have full documentation or are interested to learn more about alternative documentation loans, contact one of our Lending Specialists on 137 377 or enquire online. Alternatively speak to an accredited Pepper Money broker.
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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 licensed financial or tax adviser.
All applications for credit are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply.
Pepper Money Personal Loans is a brand of Pepper Money Limited. Credit is provided by Now Finance Group Pty Ltd, Australian Credit Licence Number 425142 as agent for NF Finco 2 Pty Limited ACN 164 213 030. Personal information for Pepper Money Personal Loans is collected, used and disclosed in accordance with Pepper’s Privacy Policy & the credit provider’s Privacy Policy.
Pepper Money Limited ABN 55 094 317 665; AFSL 286655; Australian Credit Licence 286655 (“Pepper”). All rights reserved. Pepper is the servicer of home loans provided by Pepper Finance Corporation Limited ABN 51 094 317 647. Pepper Asset Finance Pty Limited ACN 165 183 317 Australian Credit Licence 458899 is the credit provider for asset finance loans.
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