Homeloan for discharged bankrupt

Discussion in 'Loans & Mortgage Brokers' started by IamsorryIamnotgood, 22nd Jan, 2020.

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  1. IamsorryIamnotgood

    IamsorryIamnotgood Well-Known Member

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    I am trying to get information about a home loan after bankruptcy. Obviously I want to try and rebuild my finances and purchasing a modest unit in the 400-550k range seems a reasonable first step. However, I don't really what what chanecs I have of getting a loan (if at all) and when I would be eligible.

    I have a lot of questions.

    What happens after discharge and after the bankruptcy is off my credit file ? Will I be treated as a normal borrower ? If not, what can I expect when trying to get a homeloan ? Does anyone have experience or knowledge of what is required. Also what % deposit is required ? Will the interest rate be higher and do you know how much higher ?

    What happens after discharge but before the bankruptcy is off my credit file ? Does anyone have experience or knowledge of what is required. Also what % deposit is required ? How much higher will the interest rate be ?

    I still have 12 months to go until it falls off my credit file, can I get a loan before it falls off my credit file and at what interest rate ? After the 2 years are up will I be able to revert to a normal loan/rate ?

    Thank you,
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    In the past bankruptcy stayed on the credit file for 5 or 8 years. Not sure if this is still the case.

    But it will be on the bankruptcy register forever. you wont be treated as a normal borrower. It will be difficult to qualify for LMI but many lenders would be willing to consider you for an 80% LVR loan or less. Some lenders have higher rates which tend to drop down the lender ago the bankruptcy was.
     
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  3. IamsorryIamnotgood

    IamsorryIamnotgood Well-Known Member

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    It is 2 years afte discharge that it goes off your file.

    Thank you, do you think this criteria is likely to change for better or worse or has it been this way for a long time ?
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Are you sure it is 2 years? I would be surprised if it was that short.

    I have been a broker for nearly 20 years now and it appears to be slightly better than it was before now. By better I mean easier to get finance.

    During the application process I cannot think of a lender that asks about previous bankruptcy and I am not sure that they would even search the bankruptcy register as that costs money. So a lender may not know once it is off the credit file
     
  5. IamsorryIamnotgood

    IamsorryIamnotgood Well-Known Member

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    It is definitely 3 years of bankruptcy, plus 2 years as a discharged bankrupt with it on my file.

    Would a co-borrower help ? My defacto works in hospitality and does not earn a lot, however she has never been bankrupt. My income is more than around $115,000 a year plus super. Hers is probably 35k at a guess.

    I never really thought about it until now as for any property we could afford making the repayments won't really be much of an issue....even if it is up at around $600 per week.
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Co-borrowers won't over come any bankruptcy related impact, but could generally help in financing as there is an extra income.