Your application has been DECLINED! Is the dream of owning your own home or investment a lost cause? The short answer - NO.
There are many reasons that a bank might decline a loan application, especially in recent times as banks tighten their policies and are scrutinising your financial history more than ever.
An experienced Mortgage Broker understands that everyone has a their own financial story and we have a wealth of knowledge to help you structure your application appropriately and apply to the most suited lender that will fit with your unique circumstances.
Some of the most common reasons for a decline that we see, and how to overcome them:
Bad Credit
In most cases Bad Credit is reason for a Bank to instantly Decline your application. However, your Mortgage Broker will know which lenders will consider the your circumstances.
We can also help you to improve the health of your Credit Rating so it is not a hindrance.
Employment History
Most banks would prefer to see stability in your employment by seeing 6 months or more in your current role. In reality, this is not always the case and Gadsden Finance know which lenders will consider your recent change of employment.
Self Employed
If you are self employed it is fairly standard that any lender will need to see a minimum 2 year history. Although this is a policy that is not easily overcome, there are some industries that we can help.
Unsuitable Security
Not all Banks will lend against any type of property. A lender will only care about the resale value in case you default on the loan. Properties such as apartments, rural land or and investment properties are a few such security types. Luckily, we know which lenders will consider your dream property!
Your Spending Habits
More than ever before Banks are delving into your spending habits. Things like SportsBet, UberEats and restaurants will have an impact on your ability to service a loan.
Afterpay and ZipMoney are also very popular, but beware as these are not looked favourably on by banks and will also impact your ability to service a loan. Your Mortgage Broker will be able to review your spending and help you improve in this area before you apply for a loan.
You don't have enough deposit
When you are borrowing more than 80% of the property value, banks will view the loan as a higher risk. As such, these loan types are more heavily scrutinised and you will need to make sure you have perfect conduct in every other aspect your application.
However, you can still get a loan with minimal deposit, even with no deposit. We know which lenders and with what loan structure you will be best suited
If any of the above relate to you and you would like some assistance, please call Gadsden Finance on 03 5443 9098 or via email. Our Brokers are easy to chat with and full of helpful information to improve your circumstances and GET APPROVED.