Common reasons for your bank declining to lend include:
- The bank’s lending conditions can change. Lending policies change as market conditions change, the banks may have accepted your application previously but new lending policies have left you out in the cold.
- Non-standard income. An unusual income or multiple jobs which are very common these days simply don’t tick the bank’s boxes, many lenders will not look at selected income sources no matter how stable the income.
- Credit history issues. It is not uncommon for people to have difficult patches in their lives when, for a time, meeting payments was difficult. Even when you have worked hard to repay all debts the past event can come back to haunt you as a computer gives your application a credit score based on past credit history.
- Paperwork problems. This includes such things as not having filed your tax returns yet when self-employed, or being recently arrived in NZ and not built-up a credit history or employment history yet.
- Past bankruptcy. Even if someone has been discharged as a bankrupt in the past traditional conservative lenders will tend to flag this negatively.
What choices do you have? What is the alternative?
Our mortgage advice is offered using more than three-dozen lenders. While we are accredited with all the banks, we have many more options to use if that is appropriate. We can tailor a loan to suit your needs even after the banks say no, either as a long-term mortgage or as a shorter loan for a few years until you meet the bank’s lending policies once again. The choices are many, as are the number of alternative loan options.
The good news is that non-bank lenders have, over the past few years, grown in number and in size so they are now offering people a more personalised approach to lending and are taking an ever increasing share of the NZ mortgage lending market. These lenders offer a more flexible and more personal approach to lending, allowing you to get into the home otherwise denied you.
To find out how you might get the result you need and get a mortgage that works, contact us now for a free no obligation discussion. Have your questions answered, don’t miss out if you don’t need to!