Reasons Why Your Home Loan Application May Be Declined

There are occasions when we may not be the best fit for your requirements. Here's why.

Understanding your needs is our main priority. While we strive to serve every customer, there are occasions when we may not be the best fit for your home loan requirements. Here are some reasons why.

1. Your personal financial situation

It’s possible that your personal financial situation does not meet our lending criteria. Our responsibility as a lender is to meet regulatory requirements to ensure that we do not provide a loan that is deemed unsuitable for your needs or where it’s likely that you may be unable to keep up with the repayments.

2. You were not able to provide the required documents  

When you apply for an Unloan home loan, you'll need to provide documents to verify your financials. You find a detailed list of the accepted documents that can be used to verify your income in this article.

3. Your credit history has been impacted  

To assess your suitability for a home loan, we review your credit history. The information below affects your overall suitability:  

  • An adverse repayment history  
  • Bankruptcy  
  • Serious credit infringements  

If you would like to obtain a free copy of your credit report, you can request this within 90 days of receiving an Unloan decline letter by visiting  

4. You have unmet debt obligations  

When we assess your ability to repay a home loan with us, we consider liabilities you may have such as:  

  • Government study debt  
  • Training support loans  
  • Credit cards  
  • Buy now, pay later accounts  
  • Any history of missed repayments  
  • Outstanding balances or arrears  

5. You have provided ineligible security or property type  

This includes:    

  • A registered second mortgage over residential property  
  • Properties in Norfolk Island  
  • Property that are under construction  
  • Commercial properties  
  • 5 or more dwellings within the one development per application  
  • Cash deposit

 Below are eligible securities we accept as part of your application:  

  • Freehold and leasehold estates  
  • Vacant land  
  • A security interest in shares in an acceptable company title unit  
  • Properties under the National Rental Affordability Scheme (NRAS)  
  • Up to 4 dwellings within the one development per application  
  • Any land size or floor size  
  • Zoned for domestic/residential occupancy or current use includes residential (Income generated by the property cannot exceed 25% of total other eligible income).  

Other reasons  


As part of the Commonwealth Bank Group, in some cases, we are required to decline an application for other reasons to protect you or us from fraud or losses or comply with Australian law.  


For information on accessing, amending, or filing a complaint about the credit information that we hold please visit  

Related articles:

·       Documents to verify your income

·       Eligibility Criteria

·       Applying for Unloan

This article is intended to provide general information of an educational nature only. The information contained within the article including amounts, dates and interest rates are examples used for illustrative purposes only and do not reflect your repayment amounts, repayment due dates or Autopay payment dates. Your actual interest rate and repayment amount will depend on a range of factors including the information you provide and our assessment of your application. We'll tell you your actual interest rate and repayment amount if we approve your application. You can then decide whether to accept our offer.

The article does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs. You should, before acting on this, consider the appropriateness to your circumstances.

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