Declined by a bank: four client stories

Many lenders assess applications using strict, standard criteria. This can make it difficult if your income or financial structure doesn’t fit neatly into their system. If you’ve been told no by a bank or lender, a different assessment approach may still open a pathway forward.

In each of these four client stories, we partnered with a non-bank lender that looked at the customer’s overall position rather than standard bank policy alone.

A refinance declined for a complex income profile

Jessica and her husband needed to refinance existing debts and access additional funds, but had been declined by several banks due to a complex income profile and servicing constraints. We identified a non-bank lender that took a common-sense approach, assessing their overall financial position rather than relying solely on standard bank policy.

The solution consolidated their debts and provided additional funding for investment purposes. Their monthly repayments were lowered, cash flow improved, and they secured the funds they needed without compromising their financial goals.

Self-employed for less than 12 months

Mary had recently become self-employed and was looking to purchase her first home. With less than 12 months of self-employment history, her major bank was unable to assist under its standard policies.

We partnered with a non-bank lender that could assess Mary’s current business performance using alternative income verification. With a strong application supported by business bank statements and evidence of consistent income, the loan was approved, and Mary was able to purchase her first home without waiting another year to meet traditional bank policy.

One missed repayment

A long-term self-employed customer of a major bank was looking to purchase an investment property but had recently missed a repayment. The bank declined the application under its credit policy, despite an otherwise strong financial position and more than twenty years as a personal and business banking customer.

The non-bank lender we partnered with took a more flexible approach, considering the customer’s strong repayment history, business performance and the circumstances surrounding the missed repayment rather than focusing on a single credit event. The customer secured finance for the investment property and continued building their portfolio.

Borrowing power limits under a servicing policy

Eva and her husband wanted to refinance from their major bank and purchase an investment property to help their son John enter the property market. Although they had a strong repayment history and a positive credit score, their existing bank declined the application due to borrowing power limitations under its servicing policy.

We identified a non-bank lender with a more flexible servicing assessment that better reflected their true financial position. By restructuring the loan and leveraging the available equity, we secured the additional borrowing required, and the refinance was approved.