Property Investment Tips

Reason's why loan applications are rejected ...

Why was my loan application rejected?

The joys and anticipation of owning a new home are sometimes crushed when the application for mortgage financing is turned down by the lender. If your loan request has been denied, you should understand why the loan was denied and what steps you can take to correct the problem or make sure that it does not happen again. The following information will help you understand the most common reasons for loan denials and corrective measures you can take. It also describes some alternatives that exist, especially for low and moderate income home buyers.

Most common reasons for declinature (in order) are…
- Insufficient Income
- Self–Employed Income
- You are too rent reliant on your current properties rental income.
- Your Loan to Value Ratio (LVR) is too high.
- Inadequate Deposit
- Bad credit rating.
- You have too many debts
- You have no credit record.

Keep in mind that lenders don’t decline your application for the fun of it, they have many years of assessing peoples ability to pay, so if you get declined by 4 or 5 lenders, ask yourself if you really should be applying for the funds, the lender may be doing you a favour by preventing you from getting yourself in a financial situation that may be over your head.

YES! I want a FREE opinion from a mortgage broker on whether I can raise finance or not.

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