What do to when the bank says no??

Just because your bank says no, this doesn’t always mean no!

Every bank has different policies in place, and every bank uses a different method to calculate how much you can borrow. If one lender said no, that’s ok – it happens, don’t lose too much sleep over it as there are always other options available to you.

The reality is each bank only has a small selection of loans and they may not fit your requirements. If you have a good mortgage broker in your corner they will be able to help you find a lender that will welcome you with arms wide open.  If you don’t have a good mortgage broker then now might be the perfect time to get one (or just contact us at Emanate Finance ?).

Unsure how much you can borrow? Check out our true borrowing power calculator here

So how can you ensure the best chance for success?

It seems simple, but just understanding your financial position thoroughly will make a huge difference. Consider what your income is made up of and make sure you disclose all debts correctly – whilst at the same time don’t give irrelevant, unnecessary information.

Ensure all relevant documentation is provided up front and never give the bank information they have not asked for (unless that information is critical to the assessment or may affect your ability to repay your loan), reduce your credit card limits if you are not using them and consider consolidating your other debts to reduce your overall liabilities.

Assessment policy at every lender is very different, so just understanding how you fit a lenders policy before you submit an application can save you the hassle of doing an application that just doesn’t fit the lenders policy. Avoid making multiple enquires as this can dramatically impact on future application – choose the right lender before you apply.

If credit score or your credit history might be a concern, try applying to a lender that does not credit score and has in-house sign off on mortgage insurance – or listen to your mortgage broker for guidance on this.

Use credit niches and unique polices to boost your borrowing power, or overcome obstacles. If you are purchasing a home – seek a pre-approval first, and above all – seek professional assistance from a qualified mortgage broker.

 “Banks are limited to only offer you their range or products, and that might not always be what is right for you – or the most cost effective offer. Our FREE lender comparison report keeps the banks honest and your mortgage affordable. Get your report here!