A quick guide to the types of properties we may consider.
Every property is different, and security suitability will always be subject to credit assessment, valuation outcomes and lending criteria. However, understanding our approach can help you identify opportunities and structure the application.
Common residential securities
Properties are to be in a satisfactory condition, readily saleable (exceptions may be considered for customer with plans to renovate) and zoned for residential occupation. The following property types may be considered for residential loans, subject to lending criteria and valuation requirements.
Houses
Standard residential homes, including in some circumstances properties containing up to two dwellings on a single title. Locations in categories one to four are accepted up to a maximum land size of 25 acres.
Developments and units, including high-density, provided the unit has a minimum internal floor area of 30 square metres and at least one bedroom. Up to six strata-titled units, townhouses or villas may be accepted at 100% exposure to an individual borrower. Where more than six properties are held, maximum exposure is limited to 25% or three properties.
Townhouses and villas may be considered where they meet lending and valuation requirements.
Duplex properties may be considered as acceptable security
Residential vacant land
Residentially zoned vacant land may be considered up to 5 acres (only in categories 1 and 2) and with services connected, that is electricity and all weather road access.
Rural-residential properties
Some rural-residential properties may be considered, subject to acreage, marketability and valuation requirements. Property size, marketability, access and services may influence suitability.
Off the Plan Purchases
We will consider off the plan purchases for both investment and owner-occupier purposes
Construction and vacant land scenarios
Vacant land and construction-related scenarios are often assessed differently from standard residential securities. Residentially zoned vacant land may be considered, subject to policy requirements, location and servicing availability.
Unusual property scenarios
Properties with unique characteristics, zoning considerations or valuation complexities may require additional assessment. It depends on the property and the broader lending scenario. Security, income, credit profile, and loan structure are often assessed together. Send us your unusual property type scenarios and we’ll see if we can help.
Excluded securities that we generally don't consider
The following examples are generally not considered acceptable residential security:
See our commercial policy for:
Studio apartments and bedsitters
Serviced apartments
Residences converted to commercial use
Display homes or part of a display village; and
Dual key units;
Lifestyle properties
Residual stock
Residential:
Relocatable or mobile homes
Poorly maintained properties, (subject to cost of repairs or reinstatement and valuation report)
Dilapidated or condemned properties
Certain heritage-listed properties not accepted. However we will consider heritage overlay.
Dwellings zoned farming or agricultural
One-bedroom houses
Units with a very small internal living area (total internal living area < 30 sq. meters)
Effected by statutory restrictions (e.g. road widening)
Restrictive encroachments/easements/covenants;
Income producing securities;
Development sites
Prefabricated, modular, kit homes or relocatable dwellings
Environmentally effected properties – exceptions that amy be considered:
Security valuation
Different valuation methods may be used depending on the property type, location and lending scenario. Understanding security suitability is only part of the picture. Valuation outcomes help assess:
Market value
Property condition
Saleability
Location factors
Property risks
If you’re still not sure whether a property is acceptable talk to your BDM or submit a scenario.
Ready to help your clients find a loan that suits them?
Important Information
Information is correct as at [Product guide date] 2026 and subject to change at any time.
This content is for accredited Pepper Money brokers, introducers and intermediaries, including those applying for accreditation. It shouldn't be distributed to or relied upon by consumers.
All Applications are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply. 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.
