Home Loans and Mortgages FAQ

What is the difference between a Part 9 and Part 10.

• The difference is in the policies that allow you to go under a part 9 or 10.
• Part 9 has income restrictions.
• Part 9 has maximum debt restrictions.
• Part 9 has equity restrictions.
• Part 10 requires an insolvency administrator.
• Part 10 is more expensive.

Will I lose my house under a Bankruptcy?

• This will be determined by the trustee. There are many variable in this, but all your assets will be in question

What could prevent me from refinancing my home loan to pay the debts?

• Insufficient income to service the loan.
• The postcode has LVR restrictions or maximum loan sizes restrictions.
• You are unable to pay all your debt with the available equity.
• Credit file is not acceptable to the lender. Non conforming lenders still have policies in regard to maximum credit impairment.
• Unacceptable security property.
• Purpose of the loan is not acceptable to the bank – ie pay gambling debt.