How bankruptcy affects mortgage chances
After bankruptcy, mainstream lenders usually want it discharged for several years with clean credit since. Specialist lenders may consider you sooner. The best post-bankruptcy mortgage depends mostly on how long ago you were discharged and how clean your credit has been since — time is your biggest ally.
1. Mortgages 1–3 years after discharge
A small number of specialist lenders consider applicants soon after discharge, with larger deposits (often 25–40%) and higher rates. Best for those who need to buy sooner and can put down a substantial deposit.
2. Mortgages 3–6 years after discharge
More lenders open up as time passes, with smaller deposits and better rates. Best for those who can wait — each year of clean credit widens your options and lowers the cost.
3. Mortgages 6+ years after discharge
Once the bankruptcy drops off your credit file (usually after six years) and with clean credit since, you may access near-mainstream deals. Best for those fully rebuilt — you'll have the widest choice.
4. Larger-deposit post-bankruptcy mortgages
Across all stages, a bigger deposit is the strongest lever — it reduces the lender's risk and widens your choice. Best for applicants who can save 25%+ to improve their terms.
How to rebuild toward a mortgage
- Keep a spotless credit file after discharge — no missed payments
- Register on the electoral roll and rebuild with a credit-builder card
- Save the largest deposit you can
- Wait as long as practical — time dramatically improves your options
How to find the best post-bankruptcy mortgage
This is specialist territory where applying to the wrong lender means a decline and a credit footprint. A whole-of-market specialist broker knows which lenders accept your timeline. Find a specialist broker through Nesto — free, no obligation.
Frequently asked questions
How long after bankruptcy can I get a mortgage?
Some specialist lenders consider you 1–3 years after discharge with a large deposit; options and rates improve steadily, and after about six years you may access near-mainstream deals.
Do I need a bigger deposit after bankruptcy?
Usually — often 25–40% soon after discharge, reducing as time passes and your credit rebuilds.
Will my rate be higher?
Initially yes, via specialist lenders. Rates improve the longer ago the discharge and the cleaner your credit since.
Does bankruptcy stay on my credit file forever?
No — it typically drops off after six years, after which (with clean credit) your options widen considerably.
How can I improve my chances?
Keep a spotless credit file, rebuild with a credit-builder card, register to vote, save a large deposit, and wait as long as practical.