What to Do if the Bank Says “No” to Your Home Loan
You finally worked up the courage to apply for your first home loan — and the bank said no.
It sucks. We get it.
But take a breath. It’s not the end — and you probably have more options than you think.
At Nude Home Loans, we’ve helped plenty of first home buyers bounce back from rejection and still land the keys to their new home.
Here’s what to do if the bank knocks you back.
😬 Common Reasons Banks Say No
It’s rarely personal — usually it’s one of these:
Deposit too small
Credit score issues
High expenses or other debts
Employment type (e.g. casual, contract, newly self-employed)
Loan-to-Value Ratio (LVR) too high
Every lender has their own rules. What’s a “no” from Bank A might be a “yes” from Lender B.
✅ Step 1: Don’t Panic — Get a Second Opinion
One bank rejection doesn’t mean all lenders will say no.
In fact, most banks only offer their own loan products — and their risk policies are all different.
A mortgage broker (like us!) compares loans from 30+ lenders and can find one that fits your situation.
We’ve helped:
Casual workers get approved
Self-employed buyers with 1 year of tax returns
People with old defaults or credit hiccups
🛠 Step 2: Understand Why You Were Rejected
Before you try again, you need to know what went wrong. We’ll review your application and help you:
Spot what triggered the rejection
Tidy up anything that’s hurting your chances
Build a stronger case for next time
It’s not about blaming — it’s about strategising.
🧠 Step 3: Rebuild (If Needed)
Sometimes, it’s just a timing issue. We’ll help you get “loan ready” by:
Creating a debt reduction or savings plan
Adjusting your target purchase price
Boosting your borrowing power with grant eligibility or loan tweaks
A little preparation now = a much better shot next time.
🏠 Real Example: Tahlia in Werribee
Tahlia applied directly to her bank and got rejected:
Casual job
Small deposit
One late credit card payment on her file
She came to Nude thinking she’d have to wait 2 years.
We:
Matched her with a lender who accepted casual income
Used the First Home Guarantee to skip LMI
Got her approved with a 6% deposit
Result? Approved within 7 days and moved in 2 months later.
“One ‘no’ turned into the biggest ‘yes’ of my life.”
🤝 Let’s Turn Your “No” Into a Plan
Don’t go back to square one. Let us:
Review your situation
Explain your options
Help you move forward (with less stress)
👉 [Book a second opinion with Nude Home Loans]
Your loan story doesn’t end here — it’s just getting started.
