Looking for a mortgage after bankruptcy? You have options.

Discharged from bankruptcy? You have options.


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. 

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.

While some lenders may be willing to accept your home loan application with a deposit of less than 20 percent, you will need you to take out lenders mortgage insurance (LMI) which requires your loan to be approved by a third-party mortgage insurer. At Pepper Money, we don’t charge LMI on any of our home loans - we do charge a risk fee based on your loan to value ratio – but because we’re self-insured it means that we’re able to manage our own risks when it comes to assessing your home loan application, without having to seek third-party LMI approval and having it rejected at the last minute because of their criteria.

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 13 73 77 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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