My Home Loan Was Declined. Will Another Bank Look At My Application?

This is a question I have received via email, which today will remain anonymous. My bank declined my mortgage application today. I would still like to purchase the property I have put on offer on. Can I apply for another home loan with another bank right now? Well the short answer to this question is yes you can, lets look at what we would need to know.

We would need to know why your current bank or lender declined your home loan application, to help decide where or if we can lodge a new home loan application. There could be many reasons why the loan was refused. It could be that your particular bank or lender didn’t count your overtime, they didn’t like the property that you have brought, you may not have been in your job long enough, there may have been a credit default on your credit file, the reasons are endless.

Once we know the reason why your home loan application was declined, we can look at different options with other lenders. All banks and lenders have different credit policies, so just because one bank doesn’t accept your home loan application, it doesn’t mean that another bank or lender won’t. This is where an experienced mortgage broker can help, as the mortgage broker will have knowledge of the different credit policies and lending criteria that each lender has, and may be able to find a suitable loan for you, even if one bank has already said no to your application.

With the particular example above, the bank wouldn’t accept the customer’s overtime, which was a necessary part of his job. The customer’s application was submitted to another bank, whose credit policy allowed overtime, and the customers home loan was approved. He was able to purchase the property he had put an offer on, and very happy that he could.

If your current bank or lender has declined your home loan application, it might be a good time to consider contacting an experienced mortgage broker to go through other mortgage options. If you have put an offer on a property, there still might be enough time with the finance clause on the real estate contract, to apply for another home loan. A finance extension too, might be able to be organised, if your real estate finance contract clause is nearing its end.

If you have any questions or comments, please leave below. If you would like to contact an experienced mortgage broker, please contact us anytime.