It’s easy to feel discouraged when a lender declines your home loan application, but it isn’t necessarily the end of your home buying journey. Whether it’s because of low deposit, too much debt, a poor credit history, inconsistent income, or simply lender policy and lending appetite, it helps to understand why it happened and, more importantly, what your options are. Here’s what it means for you if a lender turns down your mortgage application, and what you can do about it.
Topics: Mortgage Advisers, non-bank lender, Financial Advice
Stricter lending conditions across New Zealand and Australia have led to a rise in the number of borrowers turning to second tier lenders for finance. Second tier lenders – or non-bank lenders - while tightly regulated, are privately owned and often have more flexibility in the rates and fees they can offer. As a borrower who doesn’t quite meet bank lending criteria, a second tier or non-bank lender may be the answer.
Topics: Lenders, nz mortgage, non-bank lender, lending options, NZ Mortgage Adviser, Home Loan Advice, Mortgage Advice
Choosing a mortgage involves a great deal more than simply approaching your bank for a loan. Shopping around both bank and non-bank lenders is an important part of the process which, regrettably, too many Kiwis neglect to do. It’s true that non-bank lenders haven’t always enjoyed the best reputation, but more and more home buyers are discovering just how effective this type of lending can be, particularly when banks say no.
Topics: Home Loan, new zealand real estate, nz mortgage, mortgage stress, mortgage adviser, Home Loan Rates, non-bank lender, lending options
