APIA Blog

RSS Feed

Ryan Smuts: Can you still get a mortgage after filing for bankruptcy?

Friday, November 20, 2020

IMAGE CREDIT: Adobe Stock

 

 

When it comes to mortgage lending, in many circumstances it comes down to deposits/equity and your ability to meet loan affordability criteria, which can be different depending on which lender you approach.

However, another key area of mortgage lending is your character, which covers your overall position as a borrower – including for example, credit history and account conduct. As you can imagine, filing for bankruptcy and reaching an insolvent position for which an individual or entity is unable to repay their debts, is not a good look to a potential creditor.

As far as I understand, financial institutions are unable to lend to bankrupt borrowers, however, once bankruptcy has been discharged and your credit history is clear (several years later from the initial bankruptcy) you can then re-apply for lending under standard criteria.

However, if you have minor issues with credit history, such as small defaults, and bankruptcy has not formally been applied for, there still may be options from a financing perspective to assist with your situation, on the assumption of course that there is the possibility for you to avoid bankruptcy by taking on additional finance.

If you would like more information or arrange a consultation please do not hesitate to email me at ryan@krispedersen.co.nz.


 


ABOUT THE AUTHOR

Ryan Smuts 

Ryan is a Key Accounts Manager at Kris Pedersen Mortgages and Insurance as well as a property investor. 

 

 

 

 


Recent Posts


Tags

house prices renovation banking reserve bank meth contamination fixed-term tenancy commerce commission re agent recycling equity management tenancy services cgt Gluckman property management partners travel bubble debt enforcement heating airbnb interest deductibility damage structure Tribunal case study nzpif tenant water bill rent increase skill shortage daikin tenancy issues investment strategy HSWA shower dome tax data security apia Property (Relationships) Act investor building Holler housing bubble quiet enjoyment short-term rental smoke alarm Must knows shortland chartered accountants buying housing affordability debt to income landlord Standards New Zealand HHS Level 4 termination sublease trust productivity parry v inglis will mortgage CCC insulation opes partners letting Market report business rent How to cat return subdivision sale and purchas unitary plan initio Q&A clnz yield holiday house bad tenant p lab positive cash flow privacy property maintenance Question and answer RTAA 2019 Editor's Choice CoreLogic bond form rental wof property value brightline bond beginner investor rta Guest blog LIM development ask an expert anti-social behaviour Sponsored post financial advisers act warren buffett warm up new zealand robert kiyosaki advice buyer's agent personal growth interest rates insurance market rent Must know Zodiak Management ird rental market anz principal and interest Kris Pedersen Mortgages and Insurance rta reform speculator scotney williams twg report inspection retaliatory notice auckland council interest only housing package covid-19 extractor fan election2020 boarding house legal cost ventilation DTI education Jeff Bezos legal meth lvr government off the plan wealth creation minor dwelling first home buying watercare ocr television interest limitation rtaa2020 capital gain wins winz maintenance property apprentice cash-flow trespass tenancy tribunal auckland asbestos short term rental Investment tip HHGA letting fee rent control property cycle election 2017 Case study sale and purchase ring-fencing kiwibuild buying rules early termination heater khh market negotiation worksafe TCIT heat pump Landlording relationship property rent arrears income equity Investor story mindset finance bankruptcy trademe barfoot and thompson RBNZ gluckman report

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo