Why Mortgage Applications Get Turned Down

Mortgage Applications Get Turned Down: Reasons

Why Mortgage Applications Get Turned Down in New Zealand

Was your home loan declined before settlement? Can’t get a loan at all? Don’t worry, Mortgage Masters is here to help. Our mortgage brokers and financial advisers have extensive experience and knowledge of no refusal loans Australia and New Zealand, and we’d be happy to support you through the home loans application process. Here’s what you need to know about home loan rejections and reasons why your loan applications may be unsuccessful.

Insufficient Income

One of the most common reasons why home loan applications get turned down is insufficient income. Lenders look at your debt-to-income ratio to ensure enough funds for everyday costs. This ratio measures total recurring monthly debt and gross monthly income. If it’s too high, lenders may reject your application because they are concerned about your ability to make repayments. Paying down debt and cutting discretionary spending in the months leading up to your mortgage application can help.

Bad Credit History

Kiwis searching for answers to questions like “my home loan declined when can I apply again?” may want to take a closer look at their credit history. Poor credit can influence loan applications as lenders are wary of borrowers with a history of multiple personal loans or unpaid debts. When getting ready to buy your first home, make sure to check your credit file details and try to repair poor credit history if you can. The good news is even with adverse history on your credit record, NZ mortgage advisers can help you with alternative lending options to make your dreams of owning a home a reality.

Unacceptable Property

If your loan declined after pre approval, it may be because the property you’re looking to buy isn’t eligible for funding. Sometimes Kiwis see their loan declined before settlement because the purchase price is much higher than market value, and lenders consider it too risky. After all, if borrowers can’t make the monthly payments, the lenders will need to recoup their losses on the sale of the home. For those who can’t get a loan, it may be because they are trying to buy high rises, small studios or houses in poor condition. That’s why it’s important to think about what kind of property you truly want and need when completing home loan applications.

Low Deposit

No refusal loans Australia and New Zealand are a welcome alternative to traditional bank loans for borrowers with small deposits. After all, an insufficient deposit is a frequent reason why lenders reject home loan applications in NZ, where typically a deposit of at least 20% cash or equity is required. Professional mortgage brokers can recommend low deposit options, including 10% down for first home buyers and similar programs.

Speak to Auckland’s Home Loans Application Specialists

Loan declined after pre approval? Rest assured there are options available to you. Auckland’s trusted mortgage brokers can help with any questions you have regarding home loan applications, including home loan declined when can I apply again? Reach out to Mortgage Masters today to get started.

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