There are many reasons why a bank will knock back your home loan application and many of them barely make any sense at all.
For Australian-born Khanh, the biggest obstacle in getting his mortgage refinanced wasn’t the fact that he was living and working overseas and earning a foreign income, it was because he recently switched to being self-employed after years as a PAYG worker in the IT industry.
Thanks to senior broker Mike Dogan though, Khanh was able to find a lender that took a common sense approach to his situation.
The Story
After a number of years living and working in the UK as an IT specialist, Khanh decided 2014 was year to head out on his own as a self-employed contractor.
It was around this time that he decided to refinance his current home loan which was secured by an Australian property. It was definitely going to be an uphill battle to get his refinance application approved.
Not only was he an Australian expat but it had only been 6 months since he transitioned from PAYG!
The foreign currency wasn’t the red flag in this case. The issue was that he didn’t have a single acceptable document to prove his income which meant he could meet neither full doc or low requirements.
“My circumstances were fairly challenging in securing finance,” Khanh said.
Despite the change in his employment situation, Khanh hadn’t in fact changed his profession – he was still working in the IT industry.
He approached a few mainstream lenders and mortgage brokers with his lending requirements, and you can guess what happened.
“Without assessing and understanding the merits of my situation, I was turned away almost immediately,” he said.
A Clever Solution
Khanh was in fact a very strong borrower: he was just a victim of timing and really needed a bank to hear his situation out.
Despite the odds that were stacked against him, Khanh made the right choice by seeking help from Home Loan Experts senior mortgage broker Mike Dogan, who used his considerable credit experience to find a solution.
Mike knew that if a non-resident who was self-employed approached a lender for a loan without any business activity statements, notices of assessment, tax returns or a letter from an accountant, then it would be highly unlikely that they’d get an approval.
Mike found out that Khanh was receiving credits into his account and that he had extensive industry experience working at well known companies. Along with this, he also had the documentation to prove historical income as a PAYG.
In the end, Mike was able to mitigate the negative aspects of Khanh’s situation and highlight the positives. In so doing, Khanh was able to get his mortgage approved at a great interest rate.
A Happy Ending
After assessing Khanh’s case, Mike knew immediately that the trick was going to be to either build a strong case to get his home loan application over the line or, instead, go with a lender that takes a more common sense approach.
Among his other specialties, Mike is an expert in employment types that don’t quite fit standard bank lending criteria.
“I am convinced that without Mike’s help, I wouldn’t have had the opportunity to buy my future home,” Khanh said.
Are you in a difficult situation and can’t seem to convince the lenders to hear you out?
Discuss your situation with one of our mortgage brokers by calling 1300 889 743 or by completing our free assessment form today!
If you are living outside of Australia and are having trouble with buying or refinancing, check out our non-resident page for essential information.
