Discharged Bankruptcy or Ex Part 9 or 10 Home Loans
This loan is designed to assist those borrowers that can verify their income and are 1 day discharged from Bankruptcy or completed part 9 or 10 arrangements. We have funders that allow you to purchase a home up to 95% of purchase price or refinance a home to 90% of property value. On a purchase of 95% LVR you will require sufficient funds above the 5% deposit to cover stamp duty and risk fees & costs.
High LVR’s of 95% are only available in high population areas such as Capital Cities or Major Regional Cities and Towns.
It is important for the Lender to understand the sequence of events that caused this situation and to mitigate the chances of this happening again.
These events may include:
- Bad Business decision
- Relationship or Family Breakdown
- Mental or Physical illness
- Credit Card debts
We are unable to finance current Bankrupts or Part 9 or 10 unless it is for annulments of bankruptcy and paying out part IX (9) debt agreements.
Veda Report – How long can they keep your information?
- 5 years: credit applications, overdue accounts and court judgments
- 5 years: bankruptcy orders, debt agreements and serious credit infringements
How much can I borrow if I can verify my income?
- Will allow you to borrow to a maximum of $650,000 to 95% of Property Value
- Will allow you to borrow to a maximum of $750,000 to 90% of Property Value
- Will allow you to borrow to a maximum of $1,000,000 to 85% of Property Value
- Will allow you to borrow to a maximum of $1,250,000 to 80% of Property Value
- Will allow you to borrow to a maximum of $1,500,000 to 70% of Property Value
- Will allow you to borrow to a maximum of $2,000,000 to 65% of Property Value
These type of home loans are often seen as a stepping stone to help individuals get back on track and after a period of solid payments the loans can be refinanced to a prime rate.
Non conforming home loans – higher risk, higher rate
Since you are considered a higher risk, the Lender will typically charge you a higher interest rate for a non conforming home loan. The greater the risk, the higher the interest rate. While you’d obviously prefer to pay a lower interest rate, a non conforming mortgage at least lets you get back in the game.
Improve your credit rating
With a non conforming home loan, many lenders might start you off on a higher interest rate, but if you meet your repayments for an agreed period, they’ll reduce that rate. A non conforming home loan can be a good way for someone with a bad credit history to improve their credit rating.
Each loan has to be treated as an individual basis so it is important to deal with a broker that has several options and is experienced in this category of lending.
The above gives you an overview of product perimeters however it is best to phone or apply online so we can analyse your unique circumstance.