Stricter lending conditions have put the brakes on mortgage applications, with many more first home buyers struggling to meet the latest lender requirements. Along with tightened bank lending caps to low deposit borrowers, and a far greater scrutiny on expenditure, some lenders have introduced a minimum committed income for approvals over 80 per cent loan to value ratio (LVR), making it even harder to get home loan approval. Find out what it means for you if the bank declines your home loan application, and what the next steps are in this situation. Why your application might have been declinedBeing a loyal customer to your everyday bank doesn’t necessarily give you a head start when it comes to a mortgage application approval. And it’s not uncommon for banks to approve lending to a new customer, while declining someone who has banked with them for several years. The fact is, there are a number of reasons why the bank may decline a home loan application, but the most common reasons are these:
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James Twiss
Licensed Business Owner of Harcourts Four Seasons Realty 2017 Ltd Greg Roberts
Licensed Business Owner of Harcourts Four Seasons Realty 2017 Ltd Archives
September 2020
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