As someone discharged from bankruptcy, what are my chances of getting approved?

Any general questions you might have in regards to loans and finance.
Andy007
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Joined: Mon Mar 11, 2019 11:40 am

As someone discharged from bankruptcy, what are my chances of getting approved?

Postby Andy007 » Mon Mar 11, 2019 11:41 am

Hi, I was discharged from bankruptcy in February of last year after 3 gruelling years. Our house was also liquidated when I declared bankruptcy. Both my wife and I have been saving up a deposit ever since. We have some minor credit cards (in my wife’s name) and a few thousand remaining on our car loan apart from that we don’t have any other liabilities. I just want to know if my bad credit history will stop us from getting approved. As someone discharged from bankruptcy, what are my chances of getting approved?

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Otto Dargan
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Re: As someone discharged from bankruptcy, what are my chances of getting approved?

Postby Otto Dargan » Mon Mar 11, 2019 1:57 pm

Hello Andy. Welcome to the forums.

The major banks cannot approve your home loan application while the bankruptcy listing is still on your credit file. A record of bankruptcy will remain on your credit file for up to 5 to 7 years even after you’re discharged.

Fortunately, there a few specialist lenders who are willing to offer home loan options for borrowers who are discharged bankrupts.

You can borrow up to 90% of the purchase price of a property, however, you’ll need 14-16% of the purchase price to cover the deposit, stamp duty and Lenders Mortgage Insurance (LMI).

Speak with one of our experienced mortgage brokers today who will first assess your situation and let you know what your options are.

Give us a call on 1300 889 743 or fill in our free assessment form to find out with which non-conforming lenders you can qualify for a home loan.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Andy007
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Joined: Mon Mar 11, 2019 11:40 am

Re: As someone discharged from bankruptcy, what are my chances of getting approved?

Postby Andy007 » Mon Mar 11, 2019 4:27 pm

Ok. So, if I go with a specialist lender, will I be paying a higher interest rate for my loan?

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Otto Dargan
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Re: As someone discharged from bankruptcy, what are my chances of getting approved?

Postby Otto Dargan » Mon Mar 11, 2019 6:40 pm

Hi Andy,

In most cases, you’ll pay a higher interest rate for your loan. However, we’ve obtained discounted interest rates with some of our lenders for customers who are now in a good financial position.

Discounted rates may be available if:

  • Your loan is for no more than 80% of the property value.
  • You can provide evidence that you now pay your bills on time, e.g. a rental history.
  • You can provide evidence that the bankruptcy was a one-off event that wasn’t your fault.
  • You’ve been discharged for a particular period of time, e.g. one year.

Every application is assessed on its merits therefore, we can’t guarantee that we can get you normal bank rates.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Andy007
Posts: 3
Joined: Mon Mar 11, 2019 11:40 am

Re: As someone discharged from bankruptcy, what are my chances of getting approved?

Postby Andy007 » Mon Mar 11, 2019 8:04 pm

Who are these specialist lenders anyway? Can you give me their names?

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Otto Dargan
Mortgage Specialist
Posts: 7391
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: As someone discharged from bankruptcy, what are my chances of getting approved?

Postby Otto Dargan » Mon Mar 11, 2019 8:28 pm

Hi Andy,

Specialist lenders or non-conforming lenders we deal with include:

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a loan with a specialist lender.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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