Non-Bank Pepper Money removes commercial mortgage clawbacks
Australia31 January 2023

Highlighting its commitment to broker partners, Pepper Money has announced it has removed clawbacks on all commercial mortgage products effective 1 Feb 2023. The non-bank is also simplifying their fee structures on commercial products to make Pepper Money easy to do business with.

The changes to Pepper Money’s Commercial Mortgage products comes at a time when there are strong signs the commercial property market is positioned for growth. Not only do reports show that the number of mortgage brokers writing commercial finance loans has continued to increase by almost 15% (October 2021 – March 2022 period PCP) to a new high, but the value of commercial loans settled by mortgage brokers recorded its highest ever value at $15.98 billion, up $5.71 billion or 55.5% year-on-year1.

“Commercial lending settlements have accelerated, borrower profiles are shifting, and Pepper Money is committed to supporting brokers to meet the growing demand by removing commercial lending clawbacks on early payouts,” according to Pepper Money General Manager Mortgages and Commercial, Barry Saoud.

“We’re backing the growing number of brokers that are diversifying their offering and supporting another SME’s business. There is no substitute for the commitment brokers provide to their SME clients, so we have taken this step. We listened, so we know this is a welcome change for our broker partners who are writing commercial deals,” he said.

With the growing demand for commercial lending, Pepper Money has also increased its ability to fund both non-metro and metro areas. These changes open up more opportunities for brokers and more customers Australia wide.

“In addition, to removing clawback on commercial loans, we’re also expanding our ability to fund commercial properties across Australia including non-metropolitan and regional areas. We’ve also simplified our fees and reduced legal charges to make it even easier to partner with Pepper Money. There’s never been a better time for mortgage brokers to expand their knowledge, develop new skills and diversify to include commercial property loans,” said Mr Saoud.

The changes introduced have been positively welcomed by industry.

Andrew Psalti, Senior Lending Adviser at the Lending Association QLD, said, “We love dealing with alternative commercial solutions that make sense. Pepper Money gives us just that. The removal of clawbacks and reduction in legal fees will only make the offer more compelling.”

Sonja Pfitz, Director of Pfitz Financial and Business Solutions said, “Pepper has made it easy to do business with, from removing clawbacks, reduced fees, flexible options, and allowing brokers to talk directly to our credit managers – which is really important to ensure we as the broker are able to tell that customer’s story directly to the credit manager if there are any questions. It’s great to see Pepper stand by commercial brokers every step of the way.”

Pepper Money National Sales Manager Commercial, Ben McKell explains, “With more than 20 years of specialist and SME knowledge, dedicated BDMs around Australia and a ‘real-life approach to making deals happen,’ these updates are a game changer for business owners and brokers.”

Pepper Money has a range of prime and near prime commercial property loans including full doc and alt doc options for customers needing commercial lending solutions up to $3m in loan size.

“Customers can get greater access to equity through higher LVRs and cashflow flexibility with longer loan terms. Unique features include 100% offset sub account, unlimited free redraw on variable loans, and online banking tools. We are one of the few lenders in the market with this offering,” said Mr Mckell.

“Momentum for brokers eager to diversify into business and commercial property lending continues to build,” he says. “Brokers can diversify their revenue stream and build stronger relationships with clients not just for home loans but for those looking for business solutions also.”

Speak to a Pepper Money Commercial BDM to find out more, or head to

1MFAA Intelligence Service Report (14th edition) 

For more information please contact:

Melissa Fanous
Pepper Money
Senior Marketing Communications Manager
0412 033 103