My home loan was declined due to affordability - What now?

There is nothing more devastating than a dream shattered. For some buying a property is dream that they can't wait to fulfill, however what to do when you apply for a property loan and your application gets declined due to affordability?

Declined due to affordability - what does it really mean?

Should your property loan get declined due to affordability it essentially means that at the stage of application the financial institution has found that your income is not enough to cover your existing expenses and and addition of a bond instalment but this does not mean that you can never own a property or qualify for a property loan in the future.

With a restructure of your budget with and a tight grip on spending you may be able to get a property loan in the future. So instead of spending on that expensive take away, hand bag or that pair of shoes that you know you don't really need rather save that money in a fixed interest bearing account where your money can grow and accumulate interest which could be used to buy your property and this way you can apply for a smaller amount on the property loan that equals a lower monthly repayment.

You can also look at your current accounts and the monthly installments that you are paying. Look at the accounts with the highest interest rate or installment and make extra payments to these accounts (if possible) so that you can clear these debts faster and don't take up any further debt or open any other accounts as this could also affect your affordability.

The key to having a "healthy" affordability level is budget and keeping to your budget as best as you can which means less spending and more saving this way you may qualify for a property loan next time around.

Please don't hesitate to contact us should you require more information on the above subject.