With Declined Housing Loan Application, What’s Next?

It was late at night or probably early morning when I received a text message that my application for Security Bank Housing loan was declined.

The rejection is something I have prepared for because I have to. It’s my first time to apply for a housing loan while abroad. Add the fact that I don’t have credit history in the Philippines.

Cash has always been my mode of payment since I learn to buy tsitsirya in the sari-sari store.

As an OFW I rarely use cash. If only there’s a way that my credit score in Canada is considered. But I guess that didn’t matter. All I want to know is, the reason for a declined housing loan application so I can do better in the next housing loan application.

One rejection wouldn’t stop me from applying for more home loan even from overseas.

Declined Housing Loan Application

What Went Wrong

The Real Canadian Superstore rejected my first attempt to apply for credit card after only working for less than a year.

I always receive a letter or an email about the result.

So I don’t understand why until now my representative/attorney-in-fact or me didn’t receive a letter or a call from the branch of Security Bank.

I should have seen it coming since my attorney-in-fact wasn’t informed that the appraisal fee has to be paid. If not for his initiative to go to the bank then who knows how long we have to wait for the application to move forward.

The hardest part is that I can’t do anything other than send an email.

Applying for a housing loan as an OFW is tough and frustrating. I want to ask them directly to find out the reason once in for all.

While waiting for an answer that may never come, my family and I look for another Philippine bank that offers low interest rate. A PSBank branch is nearby our house so my family inquired and showed the land title.

Right then and there, my attorney-in-fact found out that there was a problem in the land title.

The land title have many names on it acting as title holders. They should be able to sign the documents once the loan is approved. If they can.

I was told that some of the name in the title are already deceased.

Could it be the reason why the home loan was declined? If so then, why did the staff at the Security Bank hasn’t pointed it out earlier so we wouldn’t have to pay the appraisal fee.

Moving Forward

The seller would have to change the deed of title and that would mean more expenses and time.

That’s also probably the reason why the seller is having a hard time in finding a buyer other than the fact that the house is located in a dead end.

Although my mom wants the house, our family have decided to look for a new house:

  • with clean land title
  • no debt in utility or phone bills
  • located in a peaceful community
  • within the budget

We already found the house and we are going to apply for PSBank housing loan.

The customer service is great so far. My representative had a meaningful conversation while I received response from the email that I’ve sent.

Security Bank Housing Loan Application

I hope that the process is faster and we could find out the result in a professional and ethical way with letters, email, and call. As client, we deserved the right to be informed.

I’ve been venting my frustration quite long enough but I’m relieved and content that I am able to share my experience with you. Or to anyone who wants to buy a house while working overseas.

It’s not easy. But it’s possible and will take time, energy, and money. I’ll keep you updated about the progress so don’t forget to subscribe.

Your turn. How was your experience in applying for a housing loan? What are the obstacles along the way?

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About Pwede Padala Gal

Pwede Padala Gal loves to share tips on how to save in Canada and the Philippines. Someday she'll finally teach her Aspin at least one dog trick and keep a cactus alive. Chat with her on Facebook and reddit.

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