18% of Australians have been turned down for a home loan by a financial institution and nearly 1 in 10 have been rejected by a big four bank, according to new research.
This highlights the growing proportion of Australians who are being “locked out” of the financial system.
Furthermore than half of those rejected for a loan at a bank were “unaware” that there was another option available.
People are not qualifying for loans for an array of different reasons; it’s not just because they are self-employed, it could be the type of income that they have. Unfortunately this will continue to grow because the old-style bank policies are not really adapted to the new style of Gen Y economy.
There are the factors that the industry needs to have a really good think about; yes, everyone has to take a calculated risk on the top of borrowings and money that we lend out, but at the same time we cannot be ignorant or oblivious to a change and a shift in the way people work.
There is a growing disconnect between Australians and financial institutions, which is causing many Aussies to fall through the cracks.
Mortgage Brokers play a vital role in helping these people, understanding their whole situation and helping them to find a solution that meets their needs.
There are other solutions then those offered by the Big Banks