loan denial

How Aussie dealt with ‘shock’ loan denial

PHOTO: Hayden thought being a long term customer at his bank and having previously paid off a personal loan would have made him a great candidate for a home loan. Picture: Supplied

The chef, who had kept his job throughout the pandemic, was “shocked” when his bank knocked him back. Here’s what he did next.

When Hayden Lee had made an offer on a property and then was declined by the bank for a loan he was “crushed”.

The 30-year-old believed he would have no problem after preliminary discussions with the bank.

He had found a two-bedroom apartment in Wollongong selling for $540,000 that he fell in love with and had managed to save the deposit a month earlier than the deadline given to him by the bank.

But his $30,000 in savings, which would cover 5 per cent of the deposit, wasn’t enough. In fact, he discovered he needed a 10 per cent deposit due to the bank’s home loan regulations.

“I was a long term customer with them and they knew I had paid off a previous (personal) loan,” he told news.com.au.

“They also knew how much I was getting paid, especially as I was working through the whole Covid pandemic. In my eyes I wasn’t a high-risk investment, so I was a bit taken aback and shocked by it all. I was pretty upset as after all that I was going to look at the place again.”

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