Reasons For Rejected Homes Loans In Australia
You may be all excited that you’ve found the home of your dreams. You’ve headed out to apply for a home loan and are ready to take on your new housing endeavor. However, you shortly find out that you’re one of many rejected home loans in Australia. You’re likely wondering what happened and why you’re not approved for the loan that you desire.
The major reason that most Aussies get denied for home loans in Australia is due to their credit history. Your credit says a lot about how you’ve handled your finances in the past. If you have defaults on your credit report, you’re not very likely to get approved for credit with lenders. Defaults are defined as being 60 or more days late on payments for loans or revolving accounts like credit cards. These signal to a lender that you’re likely to default on your future debt obligations. Cleaning up your credit report is going to be the key to looking good to a lender for future Home Loans at Loans.com.au
in Australia.The next reason you may have been rejected for a home loan is that your debt commitment is too high for your income level. If you don’t make enough money to cover your existing debt payments, lenders aren’t going to give you more debt. This will likely lead to you defaulting on the loan. Lenders for home loans in Australia will require income statements and a list of your current debts. If they determine that your existing debt load and the new mortgage would exceed your income, they’re going to deny you for a loan. Your plan of attack needs to be to reduce your debt as much as possible. If you can, work on increasing your income. Take a quick moment to determine what your repayments are through Home Loans Calculator by Loans.com.au
The third major reason you may be denied for home loans in Australia is that you don’t have a desirable down payment amount. Most lenders look for at least 20 percent of the value of the home as a down payment. If you simply don’t have this money in a bank account that they can see proof of, you’re not going to get approved for funding. Work on saving up some more money for a down payment or look at a cheaper property that requires a smaller down payment that you can afford.
Learning the factors that go into deciding whether or not you’re a good investment is extremely important to any Aussie looking to purchase a new home. You need to know how to present yourself in a way that a lender will be more than happy to lend money to you. By reading through the list of rejection reasons above, you should have a good idea of what you need to do in order to get approved for home loans in Australia next time around.