A decline is one lender's answer. Another lender may see it differently.
Banks assess applications against a credit policy. The policy is a template, written for the ordinary case. If your situation is not ordinary, the template does not fit, and the answer is no. That answer tells you the application did not match the policy. It tells you almost nothing about whether the lending is sound.
Different lenders have different policies. Non-bank lenders have different policies again. The work is knowing which door to knock on, and building an application that survives the knock.
The situations that fall outside the template
Trust-owned property
Family trusts are common in New Zealand and they complicate lending. The trust is the borrower, the trustees have to be identified and satisfied, the trust deed has to permit the borrowing, and the lender has to be comfortable with the whole arrangement. Some lenders handle this routinely. A few will not do it at all. The trust structure itself is your lawyer's domain and we will not touch it. What we will do is arrange lending that works with the trust you already have.
Credit impairment
A default from years ago. A missed payment during a period you would rather not revisit. A credit score that does not reflect who you are now. Mainstream lenders apply a credit policy that will decline on the record, without looking at the story behind it. Non-bank lenders will often look at the story. It is often a bridge, not a destination: a route to lending now, with a path back to a mainstream lender in two or three years. We will tell you whether that path exists in your case, or whether it does not.
Non-standard property
Leasehold. Cross-lease. Apartments below a minimum floor area. Properties with structural issues, weathertightness history, or unusual titles. Lifestyle blocks that are too big for a residential lender and too small for a rural one. The property, not the borrower, is often the reason an application fails.
Intergenerational and family lending
Parents helping children buy. Children helping parents stay. Property being transferred within a family. Guarantees that need to be structured so they can be released. These arrangements need to be structured so that they can be unwound later, because circumstances change and families change with them.
Complex income
Income from multiple sources. Overseas income. Income held in an entity. Income that is real but does not present in a form a credit assessor recognises. More on self-employed mortgages →
What a non-bank lender is
Not a last resort, and not a predatory lender. A different business model. Non-bank lenders are not subject to the same capital requirements as registered banks, which means they can take positions banks cannot. They assess more, automate less, and look at the individual case rather than the template. They also price for the additional risk, and the rate is generally higher. For the right borrower, that trade is entirely rational. For the wrong borrower, it is expensive money papering over a structural problem that has not been fixed. We will tell you which one you are.
What we do
- We work out why it was declined. The letter gives one reason. The real reason is often different.
- We fix what can be fixed before we resubmit. Sometimes the answer is that the lending should not proceed, and we will say so.
- We know which lenders do what. From 40+ years of doing this and from having sat inside two of the banks doing the declining.
- We tell you the truth about cost. If we recommend non-bank lending, you will understand exactly what it costs and what the exit looks like.
- We plan the exit at the start. What has to be true to refinance to a mainstream lender in two or three years.
If you have been declined
Bring the decline with you. Whatever the lender told you, whatever documents you have, and whatever you think the reason was. We will tell you what happened, whether it can be fixed, how long it would take, and what it would cost. If the honest answer is that you should wait twelve months and do three specific things first, that is what you will hear.
Common questions.
I have been declined by my bank. Can I still get a loan?
Possibly. A decline from one lender does not mean every lender will say no. We look at why it happened and whether another lender would see it differently. Sometimes the right answer is to wait and fix something first.
What is a non-bank lender?
A lender that is not a registered bank. Non-bank lenders often look at situations banks will not, and they usually charge more for it. For many borrowers they are a step towards moving back to a bank later.
Can I borrow through a family trust?
Yes, many lenders will lend to a trust. The lender will need to be comfortable with the trust deed and the trustees. Your lawyer handles the trust itself. We arrange lending that works with it.
Will a past credit problem stop me getting a loan?
Not always. It depends on what happened, how long ago it was and what your position looks like now. Some lenders will look at the full story.
What clients say about working with Carl.
Carl was an absolute pleasure to work with. His knowledge, professionalism and prompt communication gave us confidence throughout our first home purchase. He secured us an excellent deal with Westpac and made the entire process seamless. We highly recommend Carl to anyone looking for a mortgage broker.
Three of us, all self employed, wanted to get a home loan for a shared house. Without the expertise, help and the precise instructions to fill in the various documents or organise specific items we would not have had a chance to get the mortgage over the finish line. Carl was extraordinarily helpful and always found a way to continue this not so easy application. I can highly recommend Carl. Very grateful for his assistance.
Carl was fantastic to work with. Our mortgage application was not straightforward as we were multiple people, all self employed with new businesses. We had tried using other brokers but they weren't able to get our approval across the line. Carl was tenacious with the banks, and had so much knowledge he was able to guide us through all the information we required and how to present it. After a difficult process he was able to secure us a mortgage with very favourable terms. I couldn't recommend him enough, the effort and work he puts in is second to none!
Carl Mann is a fantastic mortgage broker. He is knowledgeable, professional, and has excellent communication. Carl kept us updated along the way and provided sound advice. I would definitely recommend Carl to anyone needing assistance with mortgage finance or refinancing.
Carl helped us work through the finance for our next investment property without losing sight of our existing lending. He understood what we were trying to build over the longer term and worked through the different options with us before we made an offer. That preparation made the purchase much smoother.
Development finance was very different from arranging a normal mortgage. Carl understood the feasibility, valuations, build costs and timing the lender needed to see, and helped us get everything organised before it went to credit. Having someone who understood the development side of the deal saved a lot of back and forth.
We were purchasing premises for our business and needed someone who could look at both the property and the strength of the business behind it. Carl worked through the numbers with us, explained what the lenders would focus on and helped structure the application properly from the start.
Bring the file nobody else would take.
We will tell you what happened, whether it can be fixed, and what it would cost, in plain terms.
Every conversation is confidential.
Book a conversation