Investment home loan application declined

Discussion in 'Loans & Mortgage Brokers' started by Tony_Ton, 21st Dec, 2020.

Join Australia's most dynamic and respected property investment community
  1. Tony_Ton

    Tony_Ton Member

    Joined:
    25th Sep, 2020
    Posts:
    20
    Location:
    Sydney
    Hello All,

    I have a PPOR (mortgage) and 3 investment properties. My income and my wife's income have good servicing capability.

    I have placed an offer on a property in Perth (investment property) and 1000$ deposit has been paid too.

    I approached a broker based on Google reviews early in Nov'2020 and applied for home loan with Advantedge. He came back today saying the application got declined at 80% LVR.

    Is there any other lender who I can apply with and get a quick approval? Any suggestions for a fast investment home loan approving lender? The finance clause is 28 days, hence I am nearing the date even though settlement is in end of Jan'2021.

    Regards
     
  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,331
    Location:
    Perth
    Did they say why it was declined? No point repeating the process if there is an issue that is unfixable or needs fixing first.
     
    spludgey and The Y-man like this.
  3. Tony_Ton

    Tony_Ton Member

    Joined:
    25th Sep, 2020
    Posts:
    20
    Location:
    Sydney
    The mortgage broker said the lender is not interested in looking further because I had multiple enquiries in the last 12 months. But, he said this is unusual and usually this is not an issue.

    Because they have got multiple applications, they aren't interested in looking into mine even though there isn't much problems.
     
  4. euro73

    euro73 Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,125
    Location:
    The beautiful Hills District, Sydney Australia
    how many ???? What were they for? Is the broker certain this is the only reason for the decline? or could there be a serviceability issue?

    Its unusual that credit enquiries alone would be a hard decline at 80% ...unless you have been making a lot of credit enquiries.

    Your broker could also look at other lenders who do not credit score...AMP for example.
     
    Last edited: 22nd Dec, 2020
  5. Tony_Ton

    Tony_Ton Member

    Joined:
    25th Sep, 2020
    Posts:
    20
    Location:
    Sydney


    I bought 3 investment properties in mid to late 2020 and refinanced my PPOR in early 2020 as well. Hence, there were a lot of enquiries. I guess, the broker said it was about 30.

    I am pretty sure we don't have any serviceability issue.

    I never had any problems with CBA or NAB before, but the broker says I can't get any loans from NAB too, it's risky.

    So, AMP doesn't look at credit score? Are there any other similar lenders who are quick with approvals?
     
  6. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    5,301
    Location:
    In the Tweed
    How do you determine approx 30 credit enquiries out of 3 purchases and a PPOR refinance :confused:

    Did you use the same broker for these other loans ?
     
  7. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,256
    Location:
    Australia
    Why didn't you, or the broker, note those queries on your credit file before the latest purchase? Reviewing credit file is a standard first step.
     
    spludgey likes this.
  8. Morgs

    Morgs Well-Known Member Business Member

    Joined:
    7th Dec, 2017
    Posts:
    1,791
    Location:
    Sydney NSW
    Bluestone is another who has a 1 day turnaround at the moment with no credit scoring....

    However you need to identify exactly what the issue is, I would start with the credit report.
     
  9. spludgey

    spludgey Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,483
    Location:
    Sydney
    This shouldn't happen, in my opinion!
    A good mortgage broker should let you know if you're at risk of getting a loan declined, before applying for it.

    Give one on here a go, but just be mindful that it may be a bit more difficult now that you have one declined loan. But whatever you do, don't get any more loans declined.

    As far as I'm aware, banks only see enquiries, not the outcome. So having 30 enquiries (no idea why you would have that many), makes it seem like you got declined for 30 loans.
     
    luckyone likes this.
  10. euro73

    euro73 Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,125
    Location:
    The beautiful Hills District, Sydney Australia
    30 enquiries for 4 purchases? That seems extreme.
     
  11. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    Broker ideally should have done the credit check prior to submitting the deal, we do for every client.
    Until you find out exactly what the issue is it's hard to say how best to proceed.
    There's more to the story for sure, suggest you get a copy of your credit report asap as the first step.
     
  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,598
    Location:
    Gold Coast (Australia Wide)
    AMP have recently become a lot tougher in this area.

    ta
    rolf
     
  13. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

    Joined:
    23rd Aug, 2015
    Posts:
    1,546
    Location:
    Bella Vista
    What is your actual credit score ?

    Thats a heck of alot of enquiries.
     
  14. Beano

    Beano Well-Known Member

    Joined:
    7th Apr, 2016
    Posts:
    3,345
    Location:
    Brisbane
    have a PPOR (mortgage) and 3 investment properties. My income and my wife's income have good servicing capability
    So the PPOR has a mortgage and the three investment properties are unencumbered.
    Is the PPOR mortgage very high ? Like over 35%

    Ps congratulations on repaying the debt on your investment properties . It's great with low interest and high rents that we can pay off properties very quickly .
     
  15. starfish_99

    starfish_99 Well-Known Member

    Joined:
    17th Feb, 2020
    Posts:
    97
    Location:
    melbourne
    1. banks typically will not tell you honestly and transparently why you were declined unless it's something obvious like a default, stable income or serviceability.
    2. since the RC, many banks use automated systems that automatically decline. Brokers can't really do anything to prevent you getting a decline, even the "best" ones. Take what the blowhards say here with a grain of salt