When can you get a home loan after bankruptcy?
Not while you're still bankrupt: you can't take on credit of any size without telling the lender, and no mainstream lender will lend. Bankruptcy normally lasts three years and one day from when your statement of affairs is accepted, and it can be extended in some cases.
After discharge, the clock that matters is time and conduct:
| Time since discharge | What's usually possible |
|---|---|
| Day one to 12 months | A handful of specialist lenders, bigger deposit, higher cost |
| One to two years | More specialist lenders, better terms with clean conduct |
| Once insolvency info leaves your credit report | Many mainstream lenders become an option again |
Your bankruptcy also stays permanently on the National Personal Insolvency Index, a public record. Lenders may check it, so always disclose it. Hiding it is a fast way to get declined, or worse.
What specialist lenders look for
- Proof of discharge from the Australian Financial Security Authority.
- A clean record since. No new defaults, no missed bills, no payday loans. This is the single biggest factor.
- Stable income, ideally with the same employer or business for a while.
- Genuine savings, which show you can manage money post-bankruptcy.
- The story. A business collapse, a divorce or a medical crisis is understood. A pattern of overspending needs more time and evidence.
Refinancing after bankruptcy
If you kept or bought a home with a co-owner, or took a short-term loan after discharge, you may want to refinance onto something cheaper. Specialist lenders can do this, and refinancing again later to a mainstream lender is a common goal once enough time has passed.
Bankruptcy versus a debt agreement
A Part 9 debt agreement is a different insolvency arrangement with its own rules. Lenders often treat a finished debt agreement more kindly than a bankruptcy. See home loans with a Part 9 debt agreement, and our guide on how long after bankruptcy you can get a home loan.
Rebuilding after discharge: a 12-month plan
- 1
Month 1
Get your credit reports and confirm your bankruptcy shows as discharged. Fix any errors.
- 2
Months 1 to 3
Open a savings account with automatic deposits from every pay. Keep all bills on direct debit.
- 3
Months 3 to 6
Consider a small, low-limit credit product and pay it in full every month.
- 4
Months 6 to 12
Keep a spotless record: no new debts, no payday loans, no buy now pay later.
- 5
Month 12
Talk to us about where you stand. Many people have more options than they expected.
Bankruptcy and existing home ownership
If you owned a home when you became bankrupt, it usually vested in your trustee and may have been sold. Some people keep their home by buying the trustee's interest, sometimes with family help or a refinance after discharge. Specialist lenders can sometimes help with that refinance. Your trustee and a solicitor can explain where you stand.
What a lender won't accept
- Undisclosed bankruptcy, even if it's old.
- New defaults or payday loans since discharge.
- A bankruptcy extended because of non-cooperation with the trustee, without a strong explanation.
- No savings at all after discharge.
Being upfront about any of these early gives us the best chance of finding a fit.
What you’ll need
- Photo ID
- Bankruptcy discharge confirmation
- Credit reports from Equifax, Experian and illion
- A short explanation of what led to bankruptcy
- Payslips or income evidence
- Bank statements showing savings
- Contract of sale or current loan statements
Who it usually suits
- Discharged from bankruptcy
- Clean credit conduct since discharge
- Stable income
- A deposit or equity
- Australian citizen or permanent resident
