You’ve been declined for a home loan… Now what?

You’ve pulled together your home loan application, sent it off to your bank, maybe even the one you’ve used for years… only to be told it’s been declined. Ouch. That can sting.

But take a breath. You’re not alone, and more importantly, this isn’t the end of the road.

Why does a decline happen?

It’s actually really common for first home buyers to hit a speed bump with their first application, especially if you’ve gone straight to just one lender or done it all yourself. Banks decline applications for all sorts of reasons, like:

• A deposit that’s a little too small
• Credit history that needs a clean-up
• Irregular income or job changes
• A few too many spending red flags

The first step is finding out why the application was declined - your lender must tell you. Once you know, you’re in a far better position to either fix the issue or look at other lenders with more flexible criteria.

What next?

That’s where we come in. As mortgage advisers, we deal with dozens of lenders, not just one bank. So even if one lender has said no, there’s often another ready to say yes.

We’ll help you:

• Understand what went wrong.
• Identify other lending options.
• Put together a stronger, more tailored application.
• Create a clear plan if you’re not quite ready just yet.

Other ways forward

Sometimes we can look at:

• The First Home Loan scheme (which lets you get in with just 5% deposit).
• Using a guarantor to strengthen your application.
• Buying with family or friends as co-owners.

Other times it’s about tweaking a few habits (like reducing spending or cleaning up your credit file) and trying again in a few months with a stronger application.

The bottom line?

A decline doesn’t mean never; it just means not quite yet. And with the right advice, the path forward becomes much clearer. We’ll stay in touch and guide you each step of the way so that when you’re ready to reapply, you’re in a stronger position to succeed.

Been declined? Don’t panic. Get in touch with our Queenstown mortgage advisers and let’s figure out your next steps. Your first home might be closer than you think.