Yes, a home loan after bankruptcy is possible, usually once you are discharged. Bankruptcy normally lasts 3 years and 1 day and stays on your credit report for 5 years from when it started or 2 years after discharge, whichever is later. Specialist lenders may consider you sooner than mainstream lenders, often with a larger deposit and a higher rate.

Bankruptcy and home loans at a glance
Point Detail
Usual length 3 years and 1 day, which can be extended to 5 or 8 years
Credit report 5 years from the start or 2 years after discharge, whichever is later
Public record Stays on the National Personal Insolvency Index permanently, shown as discharged
Lenders Specialist lenders first; mainstream lenders usually after the credit report clears

How long does bankruptcy last?

Usually 3 years and 1 day from the date the Australian Financial Security Authority accepts your bankruptcy. A trustee can object to discharge, which can extend it to 5 or 8 years. While you are bankrupt you must tell lenders about the bankruptcy before borrowing over a set amount, and getting a home loan during bankruptcy is very difficult.

How long does bankruptcy stay on your credit report?

A bankruptcy stays on your credit report for 5 years from the date it started or 2 years from the date you are discharged, whichever is later. Separately, the National Personal Insolvency Index, the public register kept by AFSA, keeps a permanent record; after discharge it shows that the bankruptcy has ended.

A worked timeline

From bankruptcy to a clear credit report
Event Date
Bankruptcy accepted 1 March 2023
Discharged, after 3 years and 1 day 2 March 2026
5 years from the start 1 March 2028
2 years after discharge 2 March 2028
Listing leaves the credit report, the later date 2 March 2028

In this example, a specialist lender might consider an application from 2026, and many mainstream lenders would look more favourably from 2028.

Which lenders will consider you after discharge?

  • Specialist lenders lend to borrowers with past credit problems, sometimes soon after discharge. Expect a larger deposit, a higher rate and closer checks.
  • Mainstream lenders usually want the bankruptcy off your credit report, a clean record since and steady income.
  • After a few years with a specialist lender, refinancing to a mainstream lender can bring the rate down.

The bad credit home loans page explains the two kinds of lender in more detail.

What do lenders want to see?

  • Your discharge, confirmed by AFSA.
  • A clean record since: no new defaults, late payments or missed bills.
  • Savings built up regularly over time, as genuine savings explains.
  • Stable income from the same job or business.
  • A short explanation of what caused the bankruptcy and what has changed.

How do you rebuild after bankruptcy?

  1. Get a free copy of your credit report from each credit reporting body and correct any errors.
  2. Keep every bill and phone plan paid on time.
  3. Save regularly into one account so the history is easy to show.
  4. Avoid new credit applications, which add enquiries.
  5. Talk to a broker about timing before you start looking at properties.

The guide to your credit score for a home loan explains how lenders read a credit report, and the worked example of a first home buyer with a past default shows how a lender weighed an older credit problem.

What happens to your home if you become bankrupt?

Property you own generally passes to the bankruptcy trustee, who can sell it to pay creditors. If you own a home jointly, the trustee can deal with your share. That is one reason people facing bankruptcy are encouraged to get advice early, from AFSA or a free financial counsellor, before signing anything.

Specialist and mainstream lenders after bankruptcy
Specialist lender Mainstream lender
When Can be soon after discharge Usually once the credit report is clear
Deposit Usually larger Standard
Rate Usually higher Standard
Later Refinance once the record improves Stay or switch as normal

What about debt agreements and personal insolvency agreements?

These are alternatives to bankruptcy under the Bankruptcy Act. They are also recorded on the National Personal Insolvency Index and show on credit reports. Lenders treat them seriously, though a completed agreement usually reads better than an incomplete one. The steps above apply in the same way.

Is a bigger deposit worth waiting for?

Often. A larger deposit lowers the lender’s risk, can open more lenders and can avoid lenders mortgage insurance. Waiting until the listing leaves your credit report usually improves the rate. A broker can compare both paths: buy now with a specialist lender, or wait and buy with a mainstream one.

Questions people ask

Can I get a home loan while bankrupt?

It is very difficult. You must disclose the bankruptcy before borrowing over the set amount, and almost all lenders wait until you are discharged.

How soon after discharge can I get a home loan?

Some specialist lenders consider applications soon after discharge. Mainstream lenders usually wait until the bankruptcy leaves your credit report.

Will bankruptcy stay on my record forever?

It leaves your credit report after 5 years from the start or 2 years after discharge, whichever is later. The public National Personal Insolvency Index keeps a permanent record showing the bankruptcy has ended.

Charles Touma helps borrowers after bankruptcy choose between a specialist lender now and a mainstream lender later, and prepares the explanation lenders want to read. A free 30-minute call covers your timeline and savings. General information only, not legal, financial or credit advice; AFSA and a financial counsellor can explain your obligations. Sources: Australian Financial Security Authority, bankruptcy and the National Personal Insolvency Index, checked 17 October 2026. The timeline is an illustration of the published rules.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.