Home Loan Rejection
Having a home loan application turned down happens to thousands of people every year. But if it happens to you, don’t be discouraged.

In fact, did you know that every year 3.6 million of Australians have been declined a loan (1) by a their banking institution? In fact 26% where refused because they worked part time or were self-employed (there are 2.4 million self-employed in Australia).

54% of Australian turned down for a loan didn’t know there is a better way. Well there is. La Trobe Financial – Australia’s Best non-bank lender and leading wealth Manager with over $9 Billion Assets Under Management (AUM)

At La Trobe Financial, we recognise that everyone's circumstances are different and do not believe in a one-size fits all approach to your loan applications. Here we explain how it works and what to do when the banks turn you down.

Major banks’ home loan processes

A rejected loan by a traditional lender may be a reflection of the lender’s current credit policy, which loosens or tightens based on present market conditions and their risk management processes.

This means as a borrower you may have had no issues obtaining a loan from a bank in more robust economic times, but you might be rejected today because it's a tougher economic climate.

At such times it's worth talking to us at La Trobe Financial because we may well have products that can suit your needs that the major banks don't offer.

The other major reason for an application to be turned down can be your credit history. Major banks and other traditional lenders use an automated credit scoring process, which means your application might be declined simply because a computer gives your application a score based on your past credit history.

At La Trobe Financial, we recognise that everyone's circumstances are different and do not believe in a one-size fits all approach to your loan applications. La Trobe Financial have been assisting self-employed and other borrowers since 1952 – we are Australia’s first preferred lender for self-employed loans and we pioneered this space when we introduced Lite Doc lending in Australia in 1990.

Non-bank home loan processes

While it can be disheartening to be rejected by a bank for your credit history there is light at the end of the tunnel. Because non-bank lenders, like La Trobe Financial, can offer you a different approach to your home loan applications.

Perhaps you don't have up to date tax returns, because you are self-employed or you have filed for bankruptcy in the past? These circumstances may not fit a traditional lender’s loan suitability and credit assessment criteria but with some non-bank lenders, such as La Trobe Financial, your application is assessed individually by an underwriter against our loan suitability and credit assessment criteria. So each application is assessed on its individual merits, by a person rather than being appraised against an overarching credit score by a computer.

When it comes to home loan applications, if you have defaults or judgements against your name, we can still consider your application and you may still be eligible for a La Trobe Financial home loan solution that suits your needs, provided we are satisfied that your application complies with our normal credit assessment and loan suitability criteria. We are more concerned with assessing why the defaults and judgements occurred, your current means of income, your ongoing ability to repay the loan without incurring financial hardship, where the property is located and the size of your deposit. We assess a range of factors so that we can determine your requirements and objectives for the finance. Approval will be determined based on our lending policy.

Why La Trobe Financial

At La Trobe Financial we understand that life can be complicated and this can make it harder for some people to secure a mortgage. So all of our lending decisions are made by experienced credit analyst’s who will assess your application on its merits and, if it fits our criteria, we will always try to assist you.

We’ve been doing this for more than 65 years, helping hundreds of thousands of customers buy a property and we recognise the importance of professional advices in making one of the most important decisions of your life.

Many borrowers make the mistake of taking a back seat once they’ve been declined and wait years until they pluck up the courage to apply again. But you don't need to wait for a bank to lend to you. At La Trobe Financial, we believe everyone has the right to achieve their financial goals and we make it our mission to offer other avenues that traditional lenders may not offer. In a world of “no”, we’ve been founded on saying ‘yes’. This powers us to this day: to help people who weren’t being a chance to succeed.

So speak to us today on 13 80 10 or enquire online about how we may be able to help when the major banks say ‘no’ to your loan application.

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