For borrowers in Australia looking to rebuild after bankruptcy, understanding how bankruptcy discharge impacts commercial mortgage financing is crucial. This article explains the process and how Mortgage Street can assist borrowers in securing financing.
The Bankruptcy Discharge Process in Australia
In Australia, bankruptcy is typically discharged after three years. However, the timeline may vary based on individual financial situations. Borrowers must meet obligations set by the Australian Financial Security Authority (AFSA). These may include attending creditors’ meetings.
Once discharged, borrowers are legally freed from their bankruptcy debts. This allows them to move forward with their financial goals. One such goal is securing a commercial mortgage. However, a bankruptcy discharge can affect the loan’s terms and conditions.
Can Borrowers Obtain Commercial Mortgage Financing After Bankruptcy?
A bankruptcy discharge does not automatically exclude borrowers from securing a commercial mortgage. However, it may impact the loan’s terms. Lenders often view discharged borrowers as higher risk. This can lead to higher interest rates, stricter eligibility criteria, and lower loan amounts.
Mortgage Street offers different loan products based on the time since the borrower’s bankruptcy discharge:
- For borrowers discharged for more than two years, we offer products like , Premium, Optimax, Tolerant, Progressive, Receptive, Liberal These loans are designed for borrowers who have rebuilt their finances since discharge.
- For borrowers discharged less than six months, Mortgage Street can still assist. However, the available loan products will have higher rates and fees due to the increased risk. Our brokers will help borrowers find the best option.
Why Choose Mortgage Street?
While bankruptcy discharge can affect loan terms, working with a reputable lender is essential. Mortgage Street’s accredited brokers have the expertise to help borrowers navigate post-bankruptcy financing. We help borrowers understand their options and secure the best deals.
How Mortgage Street Can Help
Mortgage Street offers various loan products and expert advice for borrowers securing commercial mortgage financing after bankruptcy. Our brokers will guide borrowers through the process. We help them find the financing they need to move forward with confidence.