Home loan approval 'no mean feat'

Wednesday 18 March 2009

Article by Mozo

While many Australians may be itching to take advantage of historically low-interest home loans, the Sydney Morning Herald has warned that getting the all clear from the bank is getting a lot more difficult.

Speaking to the paper, Centric Lending Services’ joint lending chief Paul Heilig points out that nowadays buyers need to be "squeaky clean" to be sure of getting a home loan deal.

Previous debt issues such as credit card defaults can make all the difference in securing the finance on a dream home these days, he said.

Lisa Montgomery, the head of consumer advocacy for non-bank lender Resi Home Loans, said that people may be rejected for far smaller reasons than a bad credit card repayment record.

"It may be a [late] phone bill or rates notice or something that you don’t even realise could affect you," she warns.

Despite the tight approval conditions, a record number of first-home buyers still managed to secure a home loan deal in December, recent figures have shown.

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