Bankruptcy is a legal process that provides relief to individuals overwhelmed by debt. While it offers a fresh financial start, it also leaves a significant dent in your credit history. After bankruptcy, many individuals find it difficult to secure credit, making it challenging to purchase a home.

Most banks that accept discharged bankrupts require at least 2 years of being discharged before you can apply for a mortgage. With Non Conforming Loans a discharged bankruptcy home loan is possible from 1 day discharged. Our Discharged Bankruptcy Home Loans are for both Ex Bankrupts or for those that have completed a part 9 or 10 arrangement.

Discharged bankruptcy home loans allow you to purchase a home up to 95% of purchase price and to refinance a home loan to 90% of property value. On a purchase of 95% LVR you will require funds above the 5% deposit to cover stamp duty & costs.

Loans for Residential Zoned Vacant Land to 80% LVR and to 95% LVR on completed value for Construction are available in cat 1 or 2 locations. Lower loan amounts and higher rates and fees apply.

High LVR’s of 95% are only available in high population areas such as Capital Cities or Major Cities and Towns.

Understanding Why You Filed for Bankruptcy or Part 9.

It is important for the Lender to understand the sequence of events that caused this situation. What’s more the lender needs to know what you have done to mitigate the chances of this happening again.

These events that led to Bankruptcy may include:

• Bad Business decision.
• Relationship or Family Breakdown.
• Mental or Physical illness.
• Credit Card debts.
• Unemployment.

We are unable to finance current Bankrupts or Part 9 or 10.

Your credit file will show a record for:

• 5 years from the date that you became bankrupt or entered your part 9 arrangement.
• 2 years from the date of discharge or completion of part 9 arrangement.

You will have a permanent record listed on the National Personal Insolvency Index (NPII) if Ex Bankrupt.

1. $900,000 (Syd, Bris or Melb) $750,000 (other ct 1 or 2 areas) to 95% of Property Value for Purchase Only
2. $1,000,000 to 90% of Property Value
3. $1,250,000 to 85% of Property Value
4. $1,750,000 to 80% of Property Value
5. $3,000,000 to 75% of Property Value
6. $15,000,000 to 65% of Property Value (case by case and subject to location)

These type of home loans are often seen as a stepping stone to help individuals get back on track.  After a period of solid payments the loans can be refinanced to a prime loan.

Since you are considered a higher risk, the Lender will typically charge you a higher interest rate. The greater the risk profile, the higher the interest rate.

Are there discharged bankruptcy home loans Australia that don’t require lender’s mortgage insurance?

While you do not pay mortgage insurance there is generally a risk fee added at settlement.

A  mortgage after bankruptcy can be a good way to improve your credit rating. Once your credit file is clear and you have a proven track record and can refinance to a prime rate.

In some instances, applicants may want to hold off until they are two years discharged from bankruptcy and they are eligible for a prime loan. However, they will incur opportunity costs.   This is the costs of delaying a purchase (until they qualify for a prime loan) and missing out on the opportunity. Such costs can far outnumber the benefits of obtaining a loan now.