The current lending criteria continue to get tighter than they have ever been before, meaning that potential borrowers need to have their applications in order.

Here are 3 reasons why your home loan application might get rejected:

Poor Credit History:

Lenders want to know that you are someone who can pay back a loan. A patchy credit history is a common reason for rejection by a lender.

You Haven’t Been Employed Long Enough:

If you haven’t been in a job for at least six months, or if you have been self-employed for less than two years, you might not qualify for a standard loan and could be rejected.

Borrowing Too Much:

While it is possible to borrow to a 90 or 95% LVR, this is deemed to be high-risk and could result in your application being rejected.