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Fortunately this sort of thing doesn't happen so much any more, but it does still occur. There was a time (pre regulation) where the branches did have substantially more ability to get loans approved than the broker channel. Most lenders have consolidated their assessment policies these days...

Without an income it's going to be tough. How are they paying the bills at the moment (Rhetorical question, obvious answer is via their savings until they do get a job). They might be able to purchase the property as a rental and use the rent as serviceability, but this is along shot...