When the Banks Said No: Specialist Lending Made a Fresh Start Possible

A newly formed de facto couple, aged 37 and 29 with one dependent, are looking to purchase their first home together in a small South Island town. Despite having stable PAYE employment and a deposit from the sale of a previous property, their home loan application was declined by the banks.

One applicant had recently gone through a divorce, leaving him responsible for all joint debts. Although he maintained repayments, his banking history showed minor issues, including small unarranged overdrafts and reversed transfers, and his credit score was low.

The second applicant also had a low credit score due to some late payments, though her home loan had always been paid on time.

We were approached by their adviser with a well-prepared application that thoroughly addressed concerns and provided supporting evidence.

• Strong equity position – 70% LVR, with a genuine deposit sourced from a property sale.
• Acceptable security – no requirement for Registered Valuation, purchase price used.
• Stable employment – Both applicants are in full-time PAYE roles, demonstrating income reliability and ability to service the loan.
• Acknowledged past issues – The applicants have taken accountability for their previous problematic credit conduct and are committed to improvement.