Why It’s Difficult to Get a Loan

Securing a loan in Australia, whether for a home, business, or investment property, is often seen as a daunting task. In 2025-2026, the lending landscape is more complex than ever, with stricter lending criteria, rising interest rates, and a growing number of borrowers facing challenges in securing the right loan.

If you’re feeling overwhelmed by the loan process, you’re not alone. At Gold Door Finance, we’ve seen firsthand how challenging it can be, but we’re also here to tell you that getting a loan is absolutely achievable—especially with the right guidance and support.

In this article, I’ll break down why it’s difficult to get a loan, and how I, Ryan Reid, can help you navigate these challenges and secure the loan that fits your needs.

1. Strict Lending Criteria—Why Banks Are Getting Tougher

In recent years, Australian banks and lenders have tightened their lending criteria. While this is meant to reduce the risk of defaults and maintain a stable economy, it means that more borrowers are finding it harder to get approved.

Common Lending Challenges:

• Higher deposit requirements: Many lenders now require a 20–30% deposit instead of the traditional 10%. This can be tough for first-home buyers or those without significant savings.

• Credit score: If you have less-than-perfect credit, getting approved for a loan can feel like an uphill battle. Lenders are becoming stricter about lending to individuals with a low credit score or past defaults.

• Unstable income: If you’re self-employed, a freelancer, or have irregular income, lenders might view you as a higher-risk borrower. They prefer candidates with stable, predictable earnings.

• Larger debt load: If you have existing loans or significant liabilities, it can reduce your borrowing power and make lenders wary about your ability to repay.

2. Interest Rates and Affordability—A Major Hurdle for Borrowers

As of 2025-2026, interest rates are higher than in previous years, making loan repayments more expensive. For many borrowers, this means:

• Higher monthly repayments, which can make it harder to afford a loan.

• The increased cost of living impacting your ability to save for a deposit or cover additional loan costs.

• Limited access to affordable loan options, especially if you’re already stretched financially.

This can make the loan approval process feel more like a financial obstacle course.

3. The Growing Demand for Property—Making It Harder to Compete

The Australian property market remains highly competitive, particularly in major cities like Sydney, Melbourne, and Brisbane. This increased demand means:

• Property prices are often out of reach for many buyers, particularly first-home buyers.

• Lenders may approve fewer loans for those looking to purchase more expensive homes, leaving many buyers scrambling for more affordable options.

Additionally, the competitive bidding wars at auctions and the challenge of finding a suitable property can further complicate your journey toward homeownership.

How Ryan Reid at Gold Door Finance Can Help You Overcome These Challenges

While the loan approval process may seem difficult, the good news is that you don’t have to face it alone. With over 20 years of experience as a mortgage broker, I specialize in guiding clients through the complexities of loan applications. Here’s how I can help you:

1. Tailored Loan Solutions to Fit Your Unique Situation

Rather than offering generic loan advice, I take the time to understand your unique financial situation. Whether you’re a first-time homebuyer, self-employed, or looking for an investment loan, I’ll match you with a loan product that best suits your needs. I have access to over 40 lenders, so I can shop around for the best terms on your behalf.

2. Helping You Build a Stronger Application

If your credit score or financial situation is holding you back, I’ll help you strengthen your application. Here’s how I can assist:

• Improving your credit: If you’ve had past issues with credit, I’ll work with you to improve your score before you apply.

• Creating a more robust application: I’ll help you organize your financial documents, explain your income sources, and put together a professional application that stands out to lenders.

• Providing expert advice on how to present your finances in the best light possible.

3. Guiding You Through the Complexities of the Process

The loan process involves a lot of paperwork and legal jargon, but I’ll help you navigate it with ease:

• Pre-approval: I’ll help you secure pre-approval quickly so you know exactly how much you can borrow.

• Negotiating with lenders: I’ll handle the discussions with lenders, ensuring you get the best rates and conditions.

• Streamlining the process: I’ll ensure all your documents are in order and that your application moves forward as quickly as possible.

4. Access to Flexible Financing Options

If you’re struggling with saving for a deposit, I can help you explore:

• Low-deposit loans: Some lenders offer loans with deposits as low as 5–10% for eligible borrowers.

• First Home Buyer Grants: I’ll guide you through the available state-based grants and stamp duty concessions.

• Non-traditional lending options: If you’re self-employed or have irregular income, I’ll connect you with lenders who specialize in these types of applications.

5. Ongoing Support After Loan Approval

Once your loan is approved, the process doesn’t end there. I’m here to support you through the entire journey:

• Refinancing: If you ever need to refinance or adjust your loan terms, I’ll be here to help.

• Financial planning: I’ll provide ongoing advice to help you manage your finances and make future loan applications smoother.

Is Getting a Loan Really That Difficult?

Yes, getting a loan can be difficult in today’s market, especially with the tougher lending criteria, higher interest rates, and competitive property market. But with the right guidance, you can overcome these hurdles.

At Gold Door Finance, I’m committed to helping you navigate the complexities of securing a loan. Whether you’re struggling with credit issues, needing a larger deposit, or just unsure where to start, I’ve got the expertise to make your dream of homeownership or investment a reality.

Ready to Get Started?

Don’t let the challenges of getting a loan hold you back. Call me, Ryan Reid, today at [+61438246157] or email me at [ryan@golddoorfinance.com.au] to discuss how I can help you secure the financing you need.

Ryan Reid
Senior Mortgage Broker | Gold Door Finance
20+ Years of Experience | Trusted by Clients Nationwide
📧 [ryan@golddoorfinance.com.au]