Why will one mortgage lender approve my home loan but another will not

Most people do not realise the differences between mortgage lenders. Not only are their home loan offerings different, but their lending guidelines and assessments are also different. The mortgage lender you apply to may not be suited to your borrowing needs.

In order for a mortgage lender to determine whether or not you can afford the mortgage loan (serviceability), some use your after tax income, while others use before tax income. Some mortgage lenders add back interest paid for investment property (as they are tax deductible), while others don't. Some use a fixed amount per dependent in their calculation, while others use a percentage of all household income. On top of all that, most banks do not use the actual interest rate when calculating the serviceability, rather they use a "loaded" or "assessment" rate.

Not only is the ability to pay important, the security (property/ies to be mortgaged) offered also plays a factor.

Not all mortgage lenders are created equal. By checking with your mortgage broker who has access to over 35 mortgage lenders, you'll save time from having to check with all the mortgage lenders to see what their serviceability criteria are. Speak to a mortgage broker on 1300 55 10 45.