Home Loan After Bankruptcy: Get a Mortgage After Your Bankruptcy is Discharged

Causes of bankruptcy and personal insolvencies

There are many good reasons that people become bankrupt. Just because you have been bankrupt does not mean that you are a bad or untrustworthy person. Often luck or rather a misfortune can play a big factor in the equation.


According to the Australian Financial Security Authority, most causes of personal insolvencies are not business-related. In fact, in order from most to least, the causes of personal insolvencies are:


    • Unemployment or loss of income;
    • Excessive use of credit;
    • Domestic discord or relationship breakdown;
    • Ill health;
    • Adverse legal action;
    • Gambling or speculation; and
    • Liabilities due to guarantees.


Just because you have had some troubles in the past does not mean that you can’t get back on track. There are some specialist lenders that will consider your situation and will approve mortgages for people that can show that they are not at risk of financial troubles again.

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What you need to know about getting a home loan after you have discharged your bankruptcy

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Yes, some specialist lenders will lend to people who have discharged their bankruptcy.

Some specialist lenders will accept people who have been discharged from bankruptcy for as little as one day.

If you provide all of the income documentation requirements including tax returns (full doc) you may be able to borrow up to:


    • 95% of the property value for property purchases; and
    • 90% for refinances.


If you can provide some of the usual income documentation such as business bank statements (low doc) you may be able to borrow up to:


    • 85% of the property value for purchases; and
    • 80% for refinances.

You will need to meet all of the lender’s normal assessment criteria including demonstrating that you have the capacity to make the repayments. Different lenders have their own specific criteria that you will need to meet.

Specialist lenders may charge a premium above standard discount interest rates offered by normal lenders. Some lenders will have a set rate for this type of home loan while others assess their risk on a case by case basis for each client and offer interest rates accordingly.


Even though you are not getting the best home loan interest rate on the market, keep in mind that you will only need to stay with the specialist lender until you qualify for a home loan with the normal lenders, at which time you can then refinance to a better home loan.

The lenders and loans available for people with bad credit can vary widely in the terms, conditions, and costs. By using a reputable mortgage broker bad credit loan specialist, you can be guided accordingly through the process and you could save thousands of dollars.


Contact specialist mortgage brokers today to find out what they can do for you!

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Find out about other types of bad credit home loans

Do you have bad credit? Have you had a default(s)? Is your mortgage in arrears, or do you have a judgment, court writs or Part 9 Agreement? Find out what a bad credit loan specialist can do to help you get a home loan.

Find out about non-conforming business loans

Do you need a non-conforming business loan? Non-conforming business loans are business loans that don’t meet normal lending criteria because of factors such as: bad credit, an unusual asset used as a security/collateral for the loan, insufficient income, a larger loan amount, or a higher loan to value ratio. Find out more about non-conforming commercial loans here:

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