Discharged Bankruptcy Home Loans
Getting a discharged bankruptcy home loan is possible from 1 day discharged. Furthermore this non conforming loan is for both Ex Bankrupts or if you have completed a part 9 or 10 arrangement.
Most banks that accept discharged bankrupts require at least 2 years of being discharged before you can apply for a mortgage.
Our home loans allow you to purchase a home up to 95% of purchase price. In addition you can 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.
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 unless it is for annulments of bankruptcy. Or equally important the paying out of a part IX (9) debt agreements.
How long does the Bankruptcy or Part 9 stay on my credit file?
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.
How much can I borrow if I am a discharged bankrupt?
- $900,000 (Syd or Melb) $750,000 (other) to 95% of Property Value.
- $1,000,000 to 90% of Property Value.
- $1,000,000 to 85% of Property Value.
- $1,750,000 to 80% of Property Value.
- $2,000,000 (Syd or Melb) $1,750,000 (other) to 75% of Property Value.
- $2,500,000 to 70% of Property Value. (Larger Loan Limits available, $2.5M to $5M 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.
Discharged Bankrupt Home Loans are a Higher Risk so a Higher Rate.
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.
While you’d obviously prefer to pay a lower rate a non conforming loan lets you get back in the game.
Improve your credit rating.
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.
Opportunity Costs:
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.
Seek Expert and Professional Advice.
If you still have doubts regarding your ability to obtain a Home Loan after Bankruptcy talk to an experienced broker.
Moreover Non Conforming Loans has the experience in dealing with many non bank lenders on a regular daily basis.
Call the National Debt Helpline on 1800 007 007 if you do not have a lending solution. Their professional financial counsellors provide free and confidential advice. Equally important their helpline is open from 9:30 am to 4:30 pm, Monday to Friday.
Lastly you can also visit the National Debt Helpline website. It has step-by-step guides explaining how to fix common debt problems.
