What If the Bank Says No to My Home Loan?

Posted May 25th, 2025

What If the Bank Says No to My Home Loan?

Being turned down for a mortgage is incredibly frustrating — especially if you’ve saved for years, done everything “right,” and were counting on buying your first home. But here’s the good news:

Just because a bank says no doesn’t mean home ownership is off the table.

In fact, many New Zealanders who’ve been turned down by banks are still able to buy a home — with a little help from shared ownership options like YouOwn.

Why Would a Bank Say No?

Banks typically reject home loan applications for a few common reasons:

  • Not enough deposit (usually they want 20%)
  • High debt-to-income ratio
  • Self-employed or variable income
  • Credit history concerns
  • Not meeting their lending criteria (which keep changing)
  • Even people with good jobs and decent savings get told “no” simply because they don’t tick the traditional boxes.

So What Can You Do Instead?

Here are your best options if the bank says no:

1. Explore Co-Ownership with YouOwn
If you’ve got at least a 5% deposit, YouOwn may be able to partner with you to buy a home together. Here’s how it works:

  • You buy as much of the home as you can afford (usually 75–85%)
  • YouOwn purchases the rest with you
  • You live in the home, and we share ownership for the amount we invested
  • After your 5 year anniversary, when you’re ready, you buy us out in full or part

✅ No income caps
✅ As little as 5% deposit required
✅ No need to deal with the bank alone

If the bank says no, we might still say yes.
See if you’re eligible

2. Try a Second Tier lender

Be cautious — interest rates are a lot higher, and eligibility is still tight.

3. Wait and Save More

Not the most exciting option, but for some, it’s the fallback plan. However, waiting could mean prices go up, or you miss out on a property you love.

Real Example: Lisa & James Were Declined by the Bank…
Lisa and James were a professional couple in Auckland with a 6% deposit — but the bank declined their application.

They came to YouOwn.

We partnered with them to purchase a 3-bedroom home in West Auckland, they plan to buy us out fully in a few years using the capital gain of the property— without ever needing a 20% deposit.


Let’s Talk — Even If the Bank Has Already Said No

We’ve helped hundreds of Kiwis just like you into their first home.