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Home loan declined by your bank? Here’s what to do

A rejected home loan application isn't the end of the road, as another bank might approve the same application that the previous bank turned down.

Home Loan Declined Standard Bank

Article summary

  • Home Loans usually get rejected because of a low credit score.
  • You can take measures to improve your credit score, but it’s easier to apply to multiple banks.
  • Banks have different lending criteria and some may be more willing to approve your application than others.
  • You can apply to multiple banks with a home loan comparison service such as ooba Home Loans.

So your home loan has been rejected and now you think your dreams are shattered. But don’t be disheartened. A rejection from a single bank is a minor misstep in the grand scheme of things.

Why? Because there are many banks, and they all have different lending criteria.

Why would a bank reject your home loan?

  • The most common reason for rejection is a low credit score.
  • Your credit score is a three-digit number that tells the bank what they need to know about your financial history, such as your income, debts and so on.
  • You need a minimum credit score of 610+ for the bank to consider your home loan application.

One solution: improve your credit score

You can take the following measures to improve your credit score:

  • Check credit reports for errors.
  • Pay outstanding debts.
  • Reduce credit ratio to below 30%.
  • Settle and close accounts.
  • Limit requests for new credit.
  • Encourage your spouse to take the same measures.

How long before my credit score improves?

Changes usually show up within three months, although it’s best to wait six months.

The best solution: Apply to multiple banks

  • Banks have different lending criteria. 
  • Competition between banks means some may be more willing to approve applications with a low credit score.

How to apply to multiple banks

A home loan comparison service such as ooba Home Loans can submit your application to multiple banks.

We have a good relationship with all the banks and can negotiate with them on your behalf.

This is because banks also base their home loan packages on ever-changing factors such as the economy and the state of the property market. Furthermore, some banks may just be in a better position to lend.

Getting the best deal on your home loan

Applying to multiple banks doesn’t just give you a better chance of home loan approval, it enables you to get the best deal on your home loan.

You can compare deals offered by the banks and choose the one with the lowest interest rates.

ooba Home Loans also offers a range of tools that can make the homebuying process easier.

Start with our Bond Calculator, then use our Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.

Get a free home loan comparison

Multiple quotes from the big banks to compare.


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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.

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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.

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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.

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