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.