What to do when the banks turn you down

man turned down by a bank

Having a home loan application turned down happens to thousands of people every year. But if it happens to you, don’t be discouraged - just because you've been turned down by the banks doesn’t always mean you can’t achieve your property ambitions or refinance your home loan.

We’ve helped thousands of borrowers in unique situations with our flexible approach to lending. Since we assess you as an individual, we look beyond your credit score to find out why payments were missed, or a default happened. Often there’s a reasonable explanation and we’re here to listen.

Major banks’ existing home loan processes

Major banks’ existing home loan processes

It’s possible that you may have your application for a loan rejected by a traditional lender because of their current credit policy. These polices can loosen or tighten based on market conditions and their risk management processes.

So whereas you may have had no issues getting a loan from a bank in better economic times, you could be rejected because of a tougher climate.

Another reason that an application may be turned down could be your credit history. Many major banks and traditional lenders use an automated credit scoring process, which means your application might be declined simply because a computer gives your application a score based on your credit history. Non-bank lenders typically offer a more bespoke service.

Non-bank home loan processes

Non-bank home loan processes

Non-bank lenders, like us, offer a different approach to home loan applications.

Where a bank may decline your mortgage application because you don’t tick all the boxes, many non-bank lenders consider your individual circumstances when assessing home loan applications.

Let’s look at an example. Let’s say that you don't have up to date tax returns because you’re self-employed, which led to a bank rejecting your application because you don’t fit within their loan suitability and credit assessment criteria.

Whereas a non-bank lender, like us, would assess your application individually against our own loan suitability and credit assessment criteria. Each application is assessed on its individual merits, by a person. So, in this example, it’s possible that your home loan application that had been rejected by a bank, might be approved with Pepper Money.

If you have defaults or judgements against your name, we can still consider your application and you may still be eligible for a Pepper Money Home Loan.

We’re more concerned with assessing why the defaults and judgements occurred, your current means of income, your ongoing ability to repay the loan without incurring financial hardship, where the property is located and the size of your deposit. We assess a range of factors so that we can understand your requirements and objectives for the finance. 


We’re here to help

Many borrowers feel overwhelmed once they’ve been declined and then wait years until they pluck up the courage to apply again. But you don't need to wait for a bank to lend to you.

At Pepper Money, we believe everyone has the right to achieve their financial goals and we make it our mission to offer other avenues that traditional lenders may not offer. So contact us today on 137 377 or enquire online about how we may be able to help when the major banks say ‘no’ to your loan application.

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Want to find out where you stand?

We've got the online tools and calculators to help get your home loan journey underway. Work out how much you may be able to borrow and even quickly find out what indicative interest rate you might be eligible for.

Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.

All applications are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply. 

The results of the borrowing power calculator are based on information you have provided and is to be used as a guide only. The output of the calculator is subject to the assumptions provided in the calculator (see 'about this calculator') and are subject to change. It does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it. The interest rates do not reflect true interest rates and the formula used for the purpose of calculating estimated borrowing power is based on the assumption that interest rates remain constant for the chosen loan term. Your borrowing power amount will be different if a full application is submitted and we complete responsible lending assessment. The results in the calculator do not take into account loan setup or establishment fees nor government, statutory or lenders fees, which may be applicable from time to time. Calculator by Widgetworks.

Pepper Money Personal Loans is a brand of Pepper Money Limited. Credit is provided by Now Finance Group Pty Ltd, Australian Credit Licence Number 425142 as agent for NF Finco 2 Pty Limited ACN 164 213 030. Personal information for Pepper Money Personal Loans is collected, used and disclosed in accordance with Pepper’s Privacy Policy & the credit provider’s Privacy Policy.

Pepper Money Limited ABN 55 094 317 665; AFSL 286655; Australian Credit Licence 286655 (“Pepper”). All rights reserved. Pepper is the servicer of home loans provided by Pepper Finance Corporation Limited ABN 51 094 317 647. Pepper Asset Finance Pty Limited ACN 165 183 317 Australian Credit Licence 458899 is the credit provider for asset finance loans.

Pepper and the Pepper Money logo are registered trademarks of Pepper Group Assets (Australia) Pty Limited and are used under licence.

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