You found your dream home, you've pictured the furniture and the children have picked their rooms. You nervously wait to hear from the bank only to be declined. Devastated.
This doesn’t have to be the end - don't give up! So many times, it is simply a case of applying with a bank that's policy doesn't fit your current position. Most commonly people go to the bank they’ve always dealt with as this is where they feel comfortable and this makes sense, but it's not always the best choice.
I want to highlight below why it is important to have a relationship with a broker so that you can be matched with a bank that's going to be the right fit to your life right now. It’s all about finding solutions!
Mr and Mrs Ash were looking to purchase their first home for their growing family, however Mrs Ash was just about to go on Maternity leave. She had 3 months paid leave, and a job to return to. Mr and Mrs Ash were very disappointed when the bank they went to declined their finance application. Thankfully their solicitor got in contact and we could help them with their application to a bank with an excellent maternity leave policy. They secured their new family home and were moved in and ready for when their bub arrived. Super happy clients all round.
Mr Robertson was recently divorced and looking to buy a small unit on his own. The unit he was looking at was a dual key property in a resort setting. It was ideal for him as he lived alone so would be comfortable in one side and could permanently rent the other to help with the outgoings. Again, the client went off to his previous lender who declined the deal as they didn’t lend against dual key securities. Once contacted we found a match with a different lender that was happy to lend against such security and Mr Robertson was able to secure his new home and move forward.
Ms Gyles was looking to upgrade her owner occupied property. After months of searching she found one that ticked all the boxes and signed the contract. Ms Gyles went to her current lender due to her long term relationship and excellent conduct but was told that her income was insufficient for the new purchase and declined the deal. The only reason that it was insufficient was that Ms Gyles had a low base income but excellent commission which she could demonstrate over 2 years. When placed at the right bank there was no problem securing finance and settling on the new property.
In no way am I suggesting that every decline an approval at another bank but it's certainly worth a quick phone call just in case. The solution could be just around the corner.