My bank said no to my lending application; what are my options?

cairns mortgage brokers

It can be daunting to have signed a contract and applied for finance through your existing bank only to have your application denied. The first consideration you should have in this scenario is to understanding why the loan was declined. This way you can work out what you are required to do to turn that no into a yes.

There are a number of reasons why a loan is declined including;

  • You don’t have 5% genuine savings
  • There is an issue with your credit record
  • There is a servicing deficit
  • The valuation on your existing property which you are using for the equity for this purchase is below what you needed
  • The bank views your employment history as not being stable enough.
  • You are self-employed or have difficulty substantiating your income


Each lender looks at different criteria when they assess a loan application. This is where a broker can assist as they will use their knowledge of different banks’ lending policies to find the lender most likely to approve your loan application.


Your broker can also assist you by conducting a search with the credit agencies to check if there are any judgements or negative lodgements on your credit history. Your broker will advise you on the process of clearing any poor credit record which may be affecting the approval of your loan application.