Looking for a mortgage after bankruptcy? You have options.

Mortgage options after bankruptcy


If you’ve ever had to go through bankruptcy, you’ll know it can be soul destroying. Recovering from such an ordeal can be a long and difficult process, but now that your bankruptcy period is over you can start to slowly focus on getting your life back.

Generally, bankruptcy listings will stay on your credit file for up to 7 years, which could make the path to home ownership a little challenging even once you’ve been discharged. But just because you may be considered as someone with a bad credit history, getting a mortgage after bankruptcy is not impossible.

Bankruptcy at a glance

Bankruptcy can affect anyone regardless of age, income, gender or occupation. It occurs when someone – either an individual or a company – is unable to repay their debts. Sadly, circumstances like unemployment or redundancy, an uninsured loss or some other completely unforeseen difficulty that was out of your control can all have such a serious effect on your financial situation.

In the event of being in a situation where you are no longer able to pay your debts, you can either declare bankruptcy voluntarily or legal proceedings can be taken against an individual or a company by a creditor in the hopes of recouping some or all of the money owed.

You can find information on bankruptcy and how it works on The Australian Financial Services Authority.

Getting your life back on track

If you have been declared bankrupt, you can help get your finances back on track if you:

  • Co-operate with your Trustee in Bankruptcy.
  • Avoid applying for loans until your bankruptcy is discharged.
  • Get into the routine of running a realistic household budget.

Once your bankruptcy has been discharged, you can work your way to restore your financial goals and potentially buying a home.

Many bank lenders can be uneasy about lending to someone who has previously been declared bankrupt, and for this reason many such applicants have had their loan application declined. However, don’t think that because you have been declared bankrupt no lender will ever want your business again.

How can Pepper Money help with a mortgage after bankruptcy?

As a specialist lender we look at things differently and don’t see your bankruptcy history as something that should hold you back from your future home loan happiness. We understand that sometimes circumstances beyond your control can lead to a default, leaving you with an impaired credit history. Unlike traditional lenders who may use automated credit-scoring methods, we’ll talk with you one-on-one to learn more about your individual situation.

If you have been officially discharged (by more than 1 day) or entered a debt agreement, there are a number of home loan options that might suit you. In some cases, we may be able to assist you with finalising a debt agreement or structuring debt consolidation into your home loan through refinancing.

While there is no restriction when it comes to applying for a mortgage after bankruptcy ends, it is important to assess your financial situation and seek an advice when needed, to ensure that the new loan doesn’t put you in the same situation you were in.  

Discharged from bankruptcy, or experienced some type of credit impairment? Let us get to know you to understand how this credit issue came about and what has happened since then. For example, being able to show that you have been in a stable employment with a reliable income and savings plan patterns since then could help prove that you are in a more stable situation now, which means that you’re now able to consider a mortgage.

Whatever your case, if you’re looking to apply for a mortgage after bankruptcy, you can begin by talking with one of our Lending Specialists on 137 377 or enquire online here. The more we learn, the better we can help.

We’ve helped thousands of Australians in a wide variety of credit and bankruptcy scenarios achieve their goals, read their stories.

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