17 May 2021

Preparing for Possible Outcomes

Low Deposit Home Loan: Who Qualifies and What is it?

When applying for a loan, some home loan applicants try to control the outcome. If the result is not favourable, the applicant may be devastated. If you are in the processing of completing mortgage applications, you need to understand the possible outcomes.


Conditional Approval

If your loan application was approved conditionally, it means that your lender has assessed and approved your loan but needs more information. The lender may need different payslips, a property valuation or a completed sale contract. Once you provide the required document or meet the other conditions, you may receive full approval. 


Unconditional Approval

A loan approved unconditionally means that you have provided all the documentation your lender requires. They have assessed your loan application and borrowing capacity and authorised your home loan. 



Sometimes your loan application is denied by a bank or other lender. It may be disappointing and frustrating when this happens, but it is essential to understand why they rejected your application.

  • Poor credit history, including late payments 
  • Income that is insufficient to support loan payments and provide for your family
  • A deposit that is less than 20%
  • Other financial obligations such as child support or other loans
  • Incorrect information or information that is not up to date or misspelled. 
  • No savings or credit history


If a bank denies your request for a home loan, you can ask the lender why so you can have a better application next time. Financial brokers can also help you with your application, ensuring all the documentation is in order and meet the lender’s requirements. Mortgage House and our team of brokers can also offer you alternatives to bank loans. We may have a low doc or alt doc home loans that are a better fit for your financial situation.

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