Skip to content

What are the reasons for a home loan being rejected?

The most common reason for a bank to decline a home loan application is a low credit record.

The credit record is the most important factor the banks take into account when assessing a home loan application. A credit rating of at least 610+ is recommended to have a chance of approval.

Here’s a more detailed breakdown:

  • 781 to 850. Excellent.
  • 661 to 780. Good.
  • 610 to 660. Fair.
  • 500 to 610. Poor.
  • 300 to 499. Very poor.

If your credit record is low, you can take steps to improve it, such as paying off credit card debt.

You can also apply to multiple banks with ooba Home Loans. Competition between banks means some may be more willing to approve applications despite a low credit score.

Get a free home loan comparison

Multiple quotes from the big banks to compare.

APPLY

Ranked #1 in Banking on Hellopeter

hello-peter
Star Rating

Average rating of 4.86 from over 4 550 reviews

Simply The Best

Ooba home loans services are simply the best. My Consultant Bianca Dancer was so hands on and helpful from the get go. She guided me through the entire process and put me at ease being a first time buyer. I highly recommend their services.

Tia J

Star Ratings

Excellent Service

Jay Govender and Maleshini Reddy from OOBA provided outstanding assistance and guidance in securing our home loan. Response times were excellent and they were professional and friendly.

Brice G

Star Ratings

Bond Application

Estelle Vorster was really helpful in securing the best deal for my home loan, she not only negotiated a lower interest rate she went as far as securing 50% discount on the transfer costs.

Butana M

Star Ratings