You are probably reading this because your bank has already said NO or you think are likely to say NO, and so you want to know what are your options when the bank says NO.
Firstly, it’s not uncommon to be rejected by a bank for your home loan application, but that’s where it is important to know what options you have. You need to know that a “NO” from a bank doesn’t mean you’re out of options – it just means that you need to explore other options.
That’s what mortgage advisers can help with too.
Good advisers have been asked before “what are your options when the bank says NO” and they know how to deal with most situations.
Let’s Assess Your Home Loan Application
Once we have assessed your application and identified any issues we can suggest what options there are.
This is all done by the mortgage advisers at Mortgage Managers before you commit to anything. There is no commitment required so you can just say “thanks” and walk away or you can proceed with whatever is suggested.
Generally there are a few options:
Try another bank – this is always the first option that we would look at when the bank has said NO. Sometimes the reason that the bank might have said NO was because of policy specific to that bank or maybe it was the way that the loan application was put together. Our advisers are doing home loan applications all the time and are very good at preparing them to give the best chance of success – of a YES not a NO. We also know what some banks will do whereas other banks might not.
Delay the application – sometimes it just needs a bit more time to get your application to look better. Maybe the bank statements need to be tidied up, the payslips might show lower hours than normal, the credit check might show arrears or sometimes there are some debts that might be better consolidated. There can be a number of reasons why it might be suggested to delay the application – but that’s not always possible.
Try a non-bank lender – there are various situations where non-bank lenders can provide good solutions. They are generally a bit more expensive than banks with fees and higher interest rates, but they can often provide viable solutions when traditional banking options fall short. You need to consider the extra cost and weigh that up with the benefit of being able to buy now – at today’s price.
When our mortgage advisers assess your application they can typically suggest the best way to proceed quite quickly.
It’s really just about knowing those options so you can make an informed decision.
The Role of Mortgage Advisers
A mortgage adviser plays a pivotal role in the home buying journey for Kiwi first-time homeowners and also existing owners. The adviser serves as a strategic financial intermediary between you and the lending institutions. Mortgage advisers in New Zealand help the clients (you) navigate the range of home loan options, providing expert guidance tailored to your individual financial circumstances.
You want to know what are your options when the bank says NO, and that’s where an adviser can really help. Advisers like those at Mortgage Managers have been trained in what to do with these types of situations and they have a range of banks and non-banks that they can access on your behalf too.
These mortgage advisers perform several critical functions:
- They assess individual financial situations and borrowing capacity
- They also research and compare loan products from multiple lenders – both bank and non-bank if needed
- The mortgage advisers are there to assist with the loan application and any documentation required
- They will explain any loan features and associated costs especially with non-bank loans
- They will take a long-term view which may mean using a non-bank today and then refinancing to a bank when possible
The primary advantage of working with a good mortgage adviser lies in their ability to simplify what can often be an overwhelming situation and to help with those financial decisions that you may need to make.
The role of advisers in home buying and finance is an important one.
So you want to know what are your options when the bank says NO
Of course you do!
The bank was not helpful and so if you want to know what are your options when the bank says NO then reach out to one of our highly skilled mortgage advisers.
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