Can you Get a Mortgage After Filling for Bankruptcy in Australia?

Sadly, for many Australians, falling on hard times can mean filing for bankruptcy. While this may not be the proudest thing you’ve done in your life, in some cases it’s a perfectly smart decision that can help you get back to where you want to be and achieve your financial goals sooner.

Many people have questions about life after bankruptcy; how their credit score will be affected, if they will ever be able to loan money again if they can still keep their goal of owning a home one day.

There are many lenders who will still approve a mortgage loan, even if you have filed for bankruptcy in the past and there are many things you can do to improve your chances. Firstly, you will need to show that you have been earning a steady income for a period of time as well as saving a portion of it. This will show your potential lender that you are now cash-positive and can properly manage your finances.

While bankruptcy can’t generally be removed from your credit score, there are still ways to manage it. Make sure you check your credit score to ensure the information is accurate such as the information about your bankruptcy, the dates, amounts and list of creditors. Also check for incorrect details and duplications as it would be disappointing to have your loan rejected due to a typo!

Knowing when to buy isimperative so make sure you carefully plan it out and seek professional advice beforehand as being knocked back can also affect your credit score.

If you would like help or information about bankruptcy in Perth, Melbourne, Sydney or anywhere Australia wide, contact our team today!