7 Tips If The Bank Says “No”

Here are Lee’s 7 tips:

1. Talk to a mortgage adviser. Going to another bank could well mean another decline. An adviser will zero in quickly on whether it’s going to work elsewhere.
2. Be thorough with your paperwork; don’t just assume what is needed, it’s all about the small detail these days.
3. Be patient! So often, we see applicants getting ahead of themselves. For example, if you are just new in your job, you may need to ride it out 3-6 months before applying, or wait until the end of the financial year, if self employed, so you have up to date financials.
4. Be open to a non bank lender solution. The non bank lender sector is growing as an alternative to banks for similar or slightly higher interest rates than banks.
5. Listen to your mortgage adviser: it’s all about the detail these days. If your adviser asks for lots of information, they’re not trying to be difficult. We know what the potential roadblocks are with the banks.
6. Quiz the bank on exactly why you were declined. Sometimes they just don’t don’t like the ‘feel’ of the proposal. A good mortgage adviser will usually know where the problem lies and act accordingly.
7. Have a plan, based on the bank’s feedback, and with the help of a mortgage adviser, it may be that while it just can’t be done now, approval is possible in 6-12 months time. Sometimes it could be related to the RBNZ restrictions and may require changing your main bank in readiness for a future application.