Julian Finch reveals big reason why lenders reject home loan applications
Announcement posted by Invigorate PR 18 Sep 2025
With cost-of-living pressures rising, many Australians are turning to payday loans for quick relief. However, according to Julian Finch even a single payday loan on your credit file can destroy your chances of getting a home loan.
"Home loan lenders don't want to see a payday loan on your record," Finch said.
"It's a huge red flag. It signals financial stress, poor money management and higher risk. That $500 loan you thought was harmless could be the reason you're denied a mortgage worth hundreds of thousands of dollars."
Julian Finch is the founder and CEO of Finch Financial. With decades of mortgage brokerage and commercial lending experience, Finch has helped thousands of Australians successfully navigate the lending process. Finch Financial has one of the highest loan approval rates in the country, often securing approvals within minutes. Considered the Money Man, Julian Finch has helped many people get into the best-fit home loans fast and with minimal effort so they can buy their dream home or ideal investment property.
Why lenders say no
Finch explained that payday loans send a powerful negative message to banks and mortgage lenders.
"It tells them you couldn't manage your cashflow without resorting to one of the most expensive forms of borrowing. Even if you've repaid it in full, it stains your record and can jeopardise your approval."
Payday loans are notorious for high interest rates, aggressive fee structures and short repayment windows. However, Finch stressed that the biggest danger isn't the cost, it's the long-term damage to your financial credibility.
The ripple effect on your future
Finch warned that payday loans don't just hurt your chances with mortgages. They can also impact car finance, personal loans and even business lending.
"Once lenders see payday loans, they question your ability to handle larger, more responsible borrowing. It undermines trust and trust is everything in finance."
What to do instead
For those struggling, Finch urged Australians to look for safer alternatives.
"Talk to a finance broker about restructuring your existing debts or get advice from a financial planner. Make lifestyle changes such as cutting back on expenses. Look at selling things you can rebuy later. Talk to family about your options as well. There are smarter ways to manage cashflow that won't compromise your future," he said.
Finch added that businesses like Finch Financial regularly work with clients who don't realise the lasting impact payday loans can have.
"We see people missing out on their dream home not because of their income or savings, but because of a few payday loans they took years earlier. That's how damaging it can be."
A call for caution
"Payday loans are financial landmines," Finch said.
"They don't just cost you fees today, they cost you the opportunities of tomorrow. If home ownership or financial growth is part of your future, avoid payday loans at all costs."
Finch emphasised that consulting a finance professional before making these types of decisions could save you a lot of money and also save you from future consequences after it's too late!
"Having a relationship with a broker can really help you map out your financial future and can ensure they are in tune with your goals and can help navigate the path to reaching all of them in the right order," Finch said.
About Finch Financial Services
Based in Hurstville, NSW, Finch Financial Services has been servicing Australian families and businesses with home, personal and commercial loans as well as asset finance services since 2015. Ranked amongst the top five percent of brokerages in Australia according to data from the MFAA, Finch Financial Services is a leading brokerage and family-owned business that specialises in finding its customers loans that are tailored to their needs and goals.