That Home Loan Hub
Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
That Home Loan Hub
No Means "Not This Way": A Mortgage Advisor's Guide to Rejection
Receiving that dreaded home loan rejection can feel like the end of your homeownership dream, but take heart—it's actually just a detour on your journey. This episode dives deep into the realities of loan application declines and offers a roadmap to navigate beyond that initial "no."
We explore the most common reasons banks decline applications—from credit history issues and income instability to existing debt burdens (yes, even those unused credit cards count against you!) and insufficient deposits. You'll learn why panicking and applying to multiple lenders afterwards is one of the worst moves you can make, and what strategic steps will actually improve your position.
The value of working with a mortgage advisor goes far beyond finding better interest rates. I share how we develop personalised strategies based on your unique circumstances, identify lender flexibility, and create actionable plans that transform rejections into approvals. I'll tell you about Maria, a single mum running her own business who went from major bank rejection to homeowner in just four months through strategic planning and finding the right lender match. Remember, a banking "no" is simply a signal that you need a different approach—it's never a final verdict on your homeownership dreams. If your application was declined, don't carry that burden alone. Subscribe to The Home Loan Hub for more insights, and reach out if you need guidance turning your mortgage rejection into approval. Your future home is still waiting for you.
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Today's episode is one I wish more people heard before they give up on their dream of owning a home. Let's talk about what happens when your loan application is declined and, more importantly, what to do next. First of all, if you've been declined by a bank I want you to hear this clearly it's not the end of the road. Too often people get that one no and think their chances of buying a home are gone. But most of the time it's a matter of understanding why it happened and taking the right steps to improve your position. So why do banks say no, let's break it down.
Speaker 1:There are usually a few main reasons a bank might decline your application. The main one that we usually get is a credit history, so missed payments, defaults or too many short-term loans. We also have income issues Not enough stable income or your income is too variable. Too much debt, including car loans. Afterpays, credit cards yes, even the ones you don't use. Insufficient deposit, especially if you're applying with less than 20% deposit and a most common one when you already found the property is unsuitable property for the bank. So the home does not meet the bank's criteria and sometimes it's just the wrong bank for your situation.
Speaker 1:So what to do immediately after decline. First, do not panic and please don't start applying at 10 other banks on your own. Every application hits your credit file and multiple hits in a short period can lower your credit score even more. But instead ask for a clear reason for the decline. Get it in writing, if possible. Check your credit report you can do this for free in New Zealand via Centrix or Equifax and then, of course, talk to a mortgage advisor. And yes, this is where I can come in Now how a mortgage advisor can help. This is not just about shopping around for a better deal. It's about strategy and, as a mortgage advisor, I'll look at the strengths in your application, which lenders are more flexible with your profile, including second tier lenders or non-banks if we have to and how can we build a short-term action plan if you're not quite there yet? And sometimes we set a three or six months fixed plan, like clearing your debt, boosting the savings or getting more stable income, and then reapply with a much higher chance of success. A quick success story.
Speaker 1:So one of my clients let's call her Maria came to me after a major bank told her no, she was a single mom running her own small business and the bank didn't like the self-employed income. We worked together to restructure her debt, tighten up her business financials and submit it to a different lender that understands self-employed borrowers better. Four months later, she had the keys to her first home. And no does not mean never. It just means not this way. So if your loan was declined, don't carry the shame or fear. It's a signal, not a sentence. It just means it's time to get smart, build your plan and work with someone who can guide you through this maze. I'm here for that and I'm only a message away. Thanks for tuning into the Home Loan Hub. If this episode helps you or someone you know, share it, subscribe it and leave me a review. It helps more people find their way home. See you in the next episode.
