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  

This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.‍

Unloan is a division of Commonwealth Bank of Australia.

Applications are subject to credit approval; satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000. 

Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

There are no fees from Unloan. However, there are some mandatory Government costs depending on your state when switching your home loan. For convenience, Unloan adds this amount to the loan balance on settlement.

* Other third-party fees may apply. Government charges may apply. Your other lender may charge an exit fee when refinancing.

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