Central Coast Home Loans

11 Reasons Why You May Be Declined for a Home Loan

Below is a list of reasons why some lenders may decline a home loan application.

Play Button Play Button


  1. You have a small deposit
    You’ll usually need between 5-10% deposit…unless you have a guarantor.
  2. You have bad credit
    However, some lenders will consider your application if you’re discharged from bankruptcy or have paid your defaults.
  3. You’re unemployed
    Lenders cannot approve your application unless you can prove the source of your income.
  4. You’re too young
    If you’re aged between 18-23, your credit score may be impacted.
    Luckily, there are lenders that do not credit score.
  5. You’re close to retirement age.
    Banks can’t discriminate against your age but they may require you to demonstrate your exit strategy.coin bank and house
  6. You’ve been in your job for less than 6 months
    Most banks will decline your loan but there are lenders that take a common sense approach.
  7. You’ve been self-employed for less than 2 years
    However, for certain professionals, 1 year is enough.
  8. You want to buy a unique property.
    Properties such as inner city units and those in rural locations can be cool however, banks only care about how hard the property would be to sell in case you default on your loan.
  9. You have bad spending habits
    Your bank will look at your transaction history and will consider whether you can afford to make the mortgage repayments.
  10. You’ve applied with a lot of lenders
    Having too many inquiries on your credit file can make it tough to get a home loan but some lenders don’t mind.
  11. You want to borrow 95% of the property value
    These loans are seen as a higher risk so you’ll need someone who knows how to present your case to the lender.
    You can borrow 100% with a family guarantor!

Having a mortgage broker on your side will enable you to navigate to the best lender for your situation.

Contact Yvonne from Central Coast Mortgage Brokers on 4393 1945 for advice and to discuss your personal position.

Contact Us
Central Coast Home Loan Specialists
22 Swindon Close
Lake Haven NSW 2263
Phone: 02 4393 1945
FREE Property Report

 Enter Your Name And Email To Get Your FREE Property Report

And Learn More About The Property You Would Love To Buy...

Our Lenders
Our Lender Widget

I was most impressed by Yvonne & Fran’s face to face direct communication and their friendly informative advice

- Paul S, Wyongah
Read more
Property News

The ‘F’ word. Don’t let finance and housing affordability get you downYou can’t seem to move these days without hearing about housing affordability. The media has us hype [...]

New strata laws for NSW come into effect todayToday's the day – after years of consultation and review, it all finally comes to a head with r [...]

Changes for OTP foreign buyers rely on broken supply argumentThe government's proposed changes to allow a foreign investor to purchase an off-the-plan dwell [...]

New home sales fall to two-year lowHIA's monthly survey of Australia’s largest home builders indicates that new home sales dropped [...]

Online tool to help users find the right financial adviceNew online toolkit developed by ASIC's MoneySmart to help Australians better understand and nav [...]

AFG Accredited Member

MFAA approved