Prime Time Flex Bomb:
Pepper Money announces a limited-time game-changing no LMI, LPF and risk fee waiver

Pepper Money has today unveiled the launch of its latest promotion, Prime Time Flex Bomb, designed to provide unparalleled benefits to brokers and their clients. The limited time offer eliminates Lenders Mortgage Insurance (LMI), Lenders Protection Fees (LPF), and risk fees on prime full doc property loans, making it easier for clients to purchase or refinance property with greater affordability, cash savings, and flexibility. 

Key Highlights of the Prime Time Flex Bomb Promotion:

• No LMI, LPF, or Risk Fees up to 90% LVR on all Prime Full Doc Residential Property Loans: the promotion removes these additional costs, providing significant savings for prime clients on property purchases and refinances until 4 June 2025 (a flat lender protection fee of 3% for loans above 90% to 95% LVR).
• Comprehensive Affordability Options: Caters to investors, owner-occupiers, refinancers wanting to consolidate debts and first home buyers, ensuring that each category benefits from flexible and affordable solutions.
• Broader Eligibility: The waivers are available to a wider range of borrowers and are not limited by profession requirements, making them inclusive for all eligible applicants.
• Market-Leading Flexibility: The promotion includes up to $1.5 million loan size up to 90% LVR, surpassing the typical sub-$1 million loan size promotions offered by major banks.

Affordability

LMI may cost around 1-5% of the home loan amount depending on the loan amount, the loan-to-value ratio (LVR), and the lender's specific calculations. Last year, one of Australia’s largest LMI providers reported 810,852 insured policies in-force with a collective value of $235.4 billion.

Saoud explains that the waiver can be incredibly beneficial for first home buyers struggling to save the traditional 20% deposit and can put money back in their pocket:

Australians work hard to achieve the dream of owning their own home but saving for a deposit and paying LMI remains a huge challenge. The flexibility we’re offering eliminates the need to pay thousands of dollars upfront for mortgage insurance, making homeownership more affordable – at a time when this is a real challenge.

Additionally, first home buyers can combine this waiver with government schemes such as the First Home Owner Grant, which provides financial assistance and support for those entering the property market: By leveraging these combined benefits, first home buyers can significantly reduce their initial costs, improve their borrowing capacity, and achieve greater financial stability, making the dream of owning a home more attainable.

For investors who frequently encounter high entry costs and financing challenges, Pepper Money's current promotion offers a compelling solution: "Investors may benefit from an improved equity and cash position without payment of an LMI premium upfront," he said

Inclusive approach

Saoud explains that while it is common for lenders to offer LMI waivers to high-income professionals, recognising their stable and substantial earnings, Pepper Money's approach is different.

"We've seen favourable LMI and LPF waivers restricted to specific industries or professions like healthcare, lawyers, and government workers; however, our approach reflects our can-do attitude and our desire to flex our policies to help more people to succeed. Our approach is inclusive, ensuring that a broader

Comparative cost advantages

Understanding the impact of the waiver is crucial for brokers and their clients according to Saoud. “While some lenders may offer slightly lower rates, it’s important to look at the bigger picture. The lowest rate on offer doesn’t necessarily mean your client is better off. This is why it’s important to give the deal the non-bank test. Stay up to date with what flexible options we have on offer to help your client succeed.”

By eliminating LMI, LPF, and risk fees, Saoud says this could be a more affordable and flexible solution, enhancing borrowing capacity and reducing overall costs for the borrower: “On an owner occupier property purchase of $1 million, with 90% LVR, the client could avoid as much as $22,000 in mortgage insurance by choosing this exclusive Pepper Money offer. For Investors, the potential savings are even greater on the same property purchase price, with savings up to $25,000 on lenders mortgage insurance.

“Improved cash flow then allows clients to allocate funds towards property improvements, investments, or personal savings, leading to greater financial stability and savings over the life of their loan. If your client is consolidating debt to improve cashflow this means they’ll have more funds available for the consolidation,” he said.

Loan flexibility and borrowing capacity

Saoud also highlights that while some banks occasionally offer LMI waivers for loans up to $1 million, and Pepper Money has taken a significant step further: “By extending our flexibility to loans up to $1.5 million (up to 90% LVR), we provide an additional $500,000 in loan capacity. This market-leading approach not only reflects current property market trends but also offers customers greater opportunities to purchase higher-value properties. This increased loan size enhances borrowing capacity, allowing borrowers to secure larger loans without incurring extra costs, which is particularly beneficial for those looking to invest in higher-value properties in a dynamic real estate market.”

Educational support for brokers

To help brokers effectively communicate the benefits of this promotion, Pepper Money are offering targeted education through webinars, quick guides, and case studies. These resources will provide detailed examples of savings for various client scenarios, enabling brokers to clearly demonstrate the advantages to their clients.

The offer is available to eligible borrowers until 4 June 2025. For more information, please visit: https://www.pepperbroker.com.au/campaign/prime-time-flex-bomb or download the factsheet here.