You can do several things when the bank refuses your loan application. Of course, it's ideal to avoid being denied in the first place – so follow the advice of Ben Kingsley and Bryce Holdaway of Empower Wealth, to put you in the best possible position for approval.
1. Shop
This is not because a bank says no that all the other banks will do it. This is also true for non-bank lenders – commonly known as second-tier lenders – because these lenders often have an appetite for lending you money, even when big banks say no. They usually distribute their loan offer through a mortgage broker, so ask them to do the shopping for you.
2. Examination of existing debts
Closing or consolidating your debts to reduce your monthly expenses – your expenses would result in a larger monthly surplus. This larger surplus should be able to borrow more money and potentially turn this "no" into a "yes".
The classic examples here are high credit cards and short-term personal loans such as auto loans with very high monthly repayments. By consolidating them into a longer-term mortgage, you can significantly reduce these payments and potentially increase your borrowing capacity.
3. Review Your Expenses
We briefly discussed the spending lever earlier. A world-class fund management system breaks down your expenses into essential and discretionary expenses and allows you to make substantial savings. This is particularly evident with respect to your discretionary spending.
Several months (6 months, better) before submitting your application. If you have reduced your expenses significantly, this changes the game. Why? As part of the lending process, banks will review your banking and transactional credit card spending to see what you are spending your money on.
So, if you can be a "super saver" and reduce your discretionary expenses during this period, your chances of getting your loan approval will increase significantly and your ability to do so will increase. maximized borrowing.
For more tips, read the entire article outlining what to do when your application for funding is rejected in the February 2019 edition of Your Investment Property.
On sale at Coles news agencies and supermarkets from January 10 to February 14 or download the magazine now.
Can you afford to buy in this suburb? Find out how much you can borrow
Top suburbs:
Stafford Hts
,
Campsie
,
new city
,
the basin
,
alexandra hills
Get help for your real estate investment
Do you need help in finding the right loan for your investment?
When you invest in real estate, it is important to make sure that you do not only have the lowest available rate that you can get, but you also have the features of ready adapted to your needs.
Just fill in a few details below and we will then do what is necessary for an Australian mortgage broker to contact you and establish a solution. What features or types of loans are suited to your needs? We will even help with the paperwork. In addition, an appointment is free.
We value your privacy and treat all your information seriously – you can check
our privacy policy here
