What If My Bank Says No?

So you've come to a decision that you want to purchase your new family home, or perhaps refinance, or maybe even buy an investment property. You're pretty confident that you earn enough money and that you have a good amount of savings in the bank, but when you make that semi-confident trek to your existing bank, low and behold they say, "I'm sorry, we can't help you".

In this current environment of fluctuating rates, multi-speed property markets (even within each state!) and banking industry regulator intervention, it is all too common that what initially seems straight forward may not suit your existing lender. Or alternatively, what was completely acceptable to your own bank six months ago is no longer so. Don't despair!

Much like the retail market, lenders too make conscious decisions around what 'space' they want to be in, i.e. what is their point of difference, niche type of offering, and how they want to compete for market share. At the end of the day, they're still in business and ultimately have different approaches.

Each bank /lender has different policies, different income v expenses requirements and also levels of rate competitveness. Remember too that everyone's individual circumstances can be so different too and this can change everything in determining which is the right lender for you, for instance:

  • You - individual, couple, family, defacto relationship, retired, temporary resident
  • Employment Type - self-employed, PAYG, contract employment, part-time, casual
  • Income Type - commission, bonus, base salary, tax-exempt
  • Property Type - Owner-occupied, Investment, apartment, rural acreage, 
  • Loan Structure - Fixed, Variable, "split loan", Self Managed Super Fund, Trust, Guarantor involvement

Once again, it is important to understand and remember that banks' policies and "risk appetites" will change over time, just as our own personal circumstances change. Consequently it is important to find the lender that suits your plans and circumstances best, not just the bank that you've always been with.

At Mortgage Choice we have access to 20+ lenders (including the majors) so to help find the right solution for your plans, contact me at ash.simmons@mortgagechoice.com.au, or alternatively on 0417 163 814.

Posted in: Refinancing

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