Head-to-head
Pepper Money vs Unloan Home Loan
Rates & conditions verified 17 September 2026
Rates can change without notice. Last verified: 17 September 2026 (AEST). Please confirm details on the bank’s official page.
The comparison a Pepper Money borrower makes when the credit file has healed: a specialist lender that priced you on your history, against CBA's refinance-only digital brand that prices only on equity and clean credit. The gap between them is the cost of staying put.
Pepper Money Variable Home Loan (prime tier)
Best for borrowers who can't yet meet a bank's credit or income-document rules: alt-doc, past credit events, debt consolidation, small deposits
Condition: Advertised rate is the floor for prime borrowers; near-prime and specialist tiers are quoted higher within each LVR band
- Lends where banks decline
- 100% offset sub-account included
- Lends to a much higher LVR
Unloan (CBA) Refinance Variable
Best for Pepper borrowers whose credit event has aged off and who now hold equity, refinancing to a prime rate
Condition: Refinance only; needs clean credit and equity; no offset, redraw and a loyalty discount instead
- Far lower rate, no fees
- Loyalty discount grows each year
- Backed by CommBank
At a glance
| Pepper Money Variable Home Loan (prime tier) | Unloan (CBA) Refinance Variable | |
|---|---|---|
| Lowest variable rate (p.a.) | 6.74% | 5.89% |
| Comparison rate (p.a.) | 6.92% | 5.80% |
| Rate at highest published LVR | 8.39% at 90–95% LVR | 6.19% at ≤90% LVR |
| Investment P&I from (p.a.) | 6.94% (≤65% LVR) | 6.04% (≤80% LVR) |
| Condition to earn it | Advertised rate is the floor for prime borrowers; near-prime and specialist tiers are quoted higher within each LVR band | Refinance only; needs clean credit and equity; no offset, redraw and a loyalty discount instead |
The verdict
These two lenders serve the same person at different points in time. Pepper is the loan you can get when a bank says no: it accepts alternative income documents and past defaults, lends to a high LVR, and includes an offset, and it charges for that flexibility in rate. Unloan is the loan you graduate to. It only refinances, it wants clean credit and equity, and it has no offset, but its rate sits far below even Pepper's prime floor, before the loyalty discount starts compounding. If you took a Pepper loan two or more years ago, check whether the default has dropped off your file and how much equity you now hold. If both are in order, the table shows what staying with Pepper costs each year. If you still need alt-doc lending or your LVR is above what Unloan accepts, Pepper remains the realistic option and a rate review with Pepper itself is the next step.
FAQs
Can I refinance from Pepper Money to Unloan?
Yes, if you meet Unloan's criteria: it refinances existing loans only, requires a clean credit file and enough equity to sit within its maximum LVR, and assesses income on standard documents. A Pepper borrower who took a specialist loan after a credit event usually becomes eligible once the event ages off the credit file and the property has gained equity. Unloan's maximum LVR is on its review page.
Why is the Pepper Money rate so much higher?
Pepper prices for risk the banks won't take: alternative income verification, past credit events and high LVR lending. Its advertised rate is the prime-tier floor; near-prime and specialist borrowers are quoted higher within the same LVR band. Unloan lends only to low-risk refinancers, which is why it can price so far below.
Will I lose my offset account by moving to Unloan?
Yes. Pepper's variable loan includes a 100% offset sub-account (with a monthly fee); Unloan offers redraw on extra repayments instead. For most borrowers the rate saving outweighs the offset, but if you keep a large balance offset against the loan, run the numbers on both before switching.
Related guides
Information verified 17 September 2026. Rates are variable and subject to change. Confirm current rates and conditions on each provider's website before applying. This is not financial advice.