Pepper Group raises rates for construction loans
The non-bank lender Pepper Group has implemented mortgage rate rises on construction loans, due to higher funding costs.
Its advisory to mortgage brokers advised the higher construction loan rates came into effect July 6.
The increases ranged from 20 basis points to 55 basis points depending on the type of mortgage and the loan to value ratio (LVR).
Its essential construction loan - with an LVR of of between 80 per cent to 85 per cent - the interest rate rises from 4.59 per cent to 4.79 per cent.
Pepper Group sits among the increased number of small financial services company to flag an out-of-cycle mortgage rate rise.The advisory memo to mortgage brokers, obtained by The Australian Financial Review, said the increases applied to new business.
