Mortgage denial – learn the possible reasons

A mortgage denial might be the borrower’s fault, or it may be caused by the bank’s decision. In principle, the client has control over the former, the latter depends on the analyst handling his case. What are the reasons a bank denies a loan?

Banks specify the conditions for granting a loan. When filling out a bank loan application, most of us are hoping that the bank will approve our request, but it sometimes happens that we get denied a mortgage or some other type of loan. What are the most common reasons a bank denies a loan?

Loan denial and inadequate age

Banks may specify the maximum borrower’s age and if a client exceeds a certain specified age threshold, there’s a risk that the institution won’t agree to accept their loan application which will end mortgage denial. Of course it is also possible that, from the bank’s point of view, the client may be Too young to take out a loan. A large role is played here by the particular offer and the type of loan.

Too much debt – poor credit history

Try to pay your debts as much as possible. Problems with loans might also be caused by a not very favorable credit history, which shows how we have treated our previous liabilities.

Unregistered as a voter

Lenders have to check who you are and where you live. One of the ways to do it is a voting list.

Get registered.

Too many loan applications

Upon submitting a loan application, the lender will check the credit report, leaving a mark on it. Too many applications make it look like you’ve had problems with debts.

mortgage denial

Low deposit

Lenders will have to perform specific Calculations of the loan amount to the amount qualifying for a mortgage.


It is possible that the mortgage was denied due to an error in the credit report. Check your report at three major credit agencies and ask them about Error correction.

Bottom line

Mortgage denial – why? There can be many reasons, the ones listed in the article are just some of the possible causes. Being aware of existence of potential reasons for a bank to reject our loan application helps realistically Evaluate our own chances as a potential borrower. A loan denial in itself won’t damage your credit score. Your credit report will show that you applied for a mortgage, but it won’t show if you were approved.