What to do if your bank says no?

What to do if your bank says no?

One of the biggest concerns for first time investors or developers is whether they will be able to obtain sufficient finance to fund their project. A switched-on finance broker is the first step to addressing this question. To help you secure a loan that’s right for you, here are our top 5 reasons banks decline a mortgage loan application and my tips for turning a no into yes! 

  1. Insufficient deposit. Many lenders have differing deposit requirements. If one bank says no – go to another bank or lending institution for a second option.
  2. Property issues. Sometimes title or zoning issues can scare off some lenders. If this happens to you – seek a second opinion.
  3. Servicing issues. Lenders want to know that you can repay the loan. Sometimes they really want to see that you have a steady and reliable employment record.
  4. Credit history. If you have skeletons in your credit history closet, advise your broker as they will be in a better position to address the issue upfront.

Unrealistic expectations. Don’t waste your time requesting bank loans for properties that are out of your reach. Speak to a broker/lending institution before you begin your property search or loan applications. If you know what your realistic levels of purchase and repayments are, banks are more likely to approve your loan and you can direct your search for properties that you can realistic service.


Property Friends is a specialist Property Investment Advocacy that has been operating for the last 13 years on the basis of 3 principles: Trust, Community & Progress. www.propertyfriends.com.au (03) 9758 5331

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