Have you been refused a home loan even though you have good credit? This is actually something we hear of regularly.

There are a number of reasons this can happen, and below are a few of the most common causes to consider.

Your Credit Score May Have Flaws You Didn’t Notice

The banks do very detailed credit checks, and it’s possible they found something that you are not aware of. The issue could be something small and seemingly insignificant – something that you had forgotten about or didn’t even know existed. Even an outstanding $20 could be to blame – or a late payment that happened years ago.

Most banks and lenders have a very harsh view of what ‘good’ credit is. Typically, when people have had their home loan declined despite thinking they have good credit it’s because they didn’t realise just how strict the banks’ or lenders’ checks are.

Don’t worry though. It’s still possible to get a home loan after banks have turned you down. Find out how we can help.

Why your good credit score may not be acceptable to banks:

• Cost of living:   Some lenders will look at the way you spend money on a monthly basis. If they decide it’s ‘high risk’ they will decline your application despite your good financial standing.
• Late payments in the past:   Late payments, even small ones from years ago, can negatively affect your loan application. Many people are surprised to learn that there can be an issue even if you’re all caught up on the payments now.
• Too many past loan enquiries:   Having applied for loans in the past can impact your loan eligibility, even when your application is successful, in some cases.
• Outstanding payments:   Any payments you haven’t yet completed will have a negative impact of your loan application. Even very small outstanding payments from many years ago can be to blame. It’s possible you could have forgotten all about them.
• Lifestyle changes:   If you’ve recently changed careers or made any significant changes in the way you earn income it could negatively affect your mortgage eligibility.

What Next?

No matter what the cause, if you’ve been declined for a mortgage – don’t worry – helping people in your situation is our speciality. We will help you find a reputable lender with realistic expectations, and then help you put your best foot forward with your loan application.

In fact, in some cases we have been able to secure loans for clients at interest rates lower than the bank they were declined from!

Sound good? We’d love to hear from you.