Am I eligible for a home loan?

Yes, you can qualify for a home loan once you have finished your Part IX agreement!

  • You can borrow up to a maximum of 90% of the property value.
  • You must have around 16% of the purchase price as a deposit.
  • If you have a larger deposit then you may qualify for standard bank interest rates.
  • If you haven’t finished paying off your Part IX debt agreement then you can’t qualify for a home loan.

Our mortgage brokers are specialists in home loans for people with impaired credit.

Please complete our free assessment form or give us a call on 1300 889 743 and one of our mortgage brokers will let you know your options.

What if I have a large deposit?

If you’re in a strong financial position then we may be able to help you to qualify with a major lender that’s more accepting of debt agreements.

To qualify for a major lender with a discounted interest rate you must:

  • Borrow no more than 80% of the property value.
  • Have a very good reason for getting into the Part 9 agreement.
  • Have made all of your payments on time during the agreement.
  • Have strong savings and an excellent employment history.

If you meet the above criteria then we may be able to help you get approval with one of the banks that we have made an agreement with. This means you’ll get market leading interest rates even though you have a bad credit history!

What if you don’t meet the above criteria? We can still apply with a specialist lender and help you to borrow up to 90% of the property value.

What if my credit file no longer shows my Part IX?

With some of our lenders, you can now apply for a standard mortgage at standard interest rates, but some lenders will still only lend you 80%!

Two of our lenders can consider a loan for up to 95% of the property value.

Please fill in our free assessment form or give us a call on 1300 889 743 and one of our mortgage brokers will let you know your options.

Will I qualify with a bank or a specialist lender?

If you’re currently in or have previously been in a Part 9 debt agreement then it’ll show up on your credit file and the banks are able to access this information when assessing your loan application.

A major bank can’t consider your loan application.

We have, however, made agreements with some of the smaller banks to consider people who:

  • Have a very good reason for being in the debt agreement in the first place;
  • Have completed the agreement more than 12 months ago; and
  • Are borrowing less than 80% LVR (of the property value).

The reason must be substantial enough to justify the agreement – such as a major illness – otherwise the bank will simply decline your loan. You must also prove that after the agreement you have made all of your rent payments on time, have saved some money on your own and haven’t had any more credit issues.

Specialist lenders are more flexible in the way that they assess your loan. However, they’ll charge a higher interest rate to compensate for the higher risk of your loan.

Our mortgage brokers are specialists in home loans for people who have been in a Part IX Agreement. Please fill in our free assessment form or give us a call on 1300 889 743 and one of our mortgage brokers will let you know which lenders you can qualify with.

What if I’m still in a debt agreement?

If you’re currently in a Part IX or Part 9 Debt Agreement then we can refinance your current mortgage to pay out your agreement.

You can borrow up to 80% LVR (of the value of the property) if you’ve been in the agreement for at least 12 months and have made perfect repayments for the last six months.

You can obtain a home loan with a specialist lender, typically at 2% to 4% above the Bank Standard Variable rate.

You can’t get a home loan to purchase a property during a Part 9 Agreement.

Part X Personal Insolvency Agreement

If you’ve entered into a Part X or Part 10 Personal Insolvency Agreement then the same lending criteria will apply as if you had been in a Part 9 Debt Agreement.

Please refer to the lending guidelines listed above.

What should I know about the Part 9 debt agreement?

Individuals often enter into a debt agreement as an alternative to going bankrupt. This type of agreement makes it possible for people to overcome financial hardship that’s caused a default on loan repayments or fixed expenses.

Part 9 Debt Agreement is regulated by the Insolvency & Trustee Service of Australia (ITSA), a Federal Government body. Your name will be listed on the National Personal Insolvency Index (NPII) and won’t ever be removed.

Although the prime lenders are strict on lending money to borrowers who have been in a Part 9 Debt Agreement, there are specialist lenders who can consider your application if you’re borrowing no more than 80% of the property value.

Is there an advantage to the Part 9 agreement?

Compared to being bankrupt, the Part 9 debt agreement is far more flexible and allows the borrower to have a number of options including:

  • Negotiating a system of periodic payments out of your salary which is set at a level that you can afford.
  • Having a moratorium arranged which is a temporary suspension of paying your debt.
  • A transfer of some of your property from you to your creditor in full or part payment of your debt.
  • Having an agreement with your creditor to pay less than the full amount of the debt that you owe.

What do the banks think of a Part 9 debt agreement?

It’s very difficult for the major banks to approve a loan if they know that you’re under the part 9 debt agreement. This is because the prime lenders like to be very cautious when lending money to a borrower who has a bad credit history as they would be placing themselves in risk for approving a loan for a borrower who can’t make the repayments on time.

However, there are still ways around getting a loan approval for your situation!

There are specialist lenders who can consider your debt agreement when you apply for a mortgage. However, you must meet specific approval criteria.

Please fill in our free assessment form or give us a call on 1300 889 743 and one of our mortgage brokers will answer all of your queries.

  • Christina

    Hi, I’m in a Part 9 agreement due to some unforeseen circumstances. It is mentioned that refinance of the current mortgage is possible if one’s still in the agreement, and I’m interested in that. Adding, I want some cash-out as well is this possible or not?

  • Hi Christina, there are some lenders that would accept a refinance of a current mortgage while you are on a Part IX Debt Agreement. As such loan is very high risk for the lender, the only cash out you could get is releasing equity to pay out your Part IX.

  • Bianca

    My husband owns a property which is valued at $460,000 and I want to buy in to be on the title but I was discharged from a Part IX agreement 3 years ago. He only owes $250,000 and he’s got clear credit. Can you help? What will my rate be?

  • Hi Bianca, in most states, you can be added to the property title of your partner’s property and stamp duty is waived, so that’s a good thing. Check with your conveyancer / solicitor / state government to be sure.

    As you’ve got a lot of equity and your Part IX was finalised a long time ago, we can get you approved with a prime lender at a great rate. Likely just below 4%, which may be lower than your husband’s current home loan! Give us a call on 1300 889 743 to discuss.

  • Rachel CJ

    I have completed a Part 9 personal insolvency agreement three months ago. All my debts are paid off and now I’m looking to renovate the home I’m living in. We owe $320,000 and our property is worth $550,000.

  • Hi Rachel, that should be fine. It depends on how much you intend to spend on your renovations and if they are structural e.g. adding rooms / knocking down walls, or non-structural e.g. kitchen, bathroom, sanding floors, painting. As a general rule, if you borrow less than 80% of the property value, you’ll get an amazing rate. Also, if one of you have clear credit then that will help us to get you a better deal.

    Call us on 1300 889 743 and we can work out what you are eligible for. Good luck with your renos!

  • Galvan, R

    Hi there, I’ve finished paying off a part 9 debt agreement and I’ll have roughly $20,000 within 6-7 months in the future. I’m just enquiring whether it is still a possibility to buy a property with a guarantor? It says that the debt agreement will be on my record till 2019 but I’m now saving enough money to buy a house fairly easily.

  • Hey Galvan,

    In some cases, it’s possible to buy a property with little to no deposit as long as you have a guarantor that owns real estate in Australia who can guarantee your loan. There are quite a few conditions on this:
    – In most cases, the guarantor must be working (i.e. not retired),
    – You must have some savings or a good rental history to show evidence that you can pay the loan.

    Having $20k in savings is great proof that you’re back on your feet and can manage your money. Give us a call on 1300 889 743 and we can discuss in more detail.

  • Danielle

    Hi there. I have just paid out a part 9 debt agreement. I have good income and have saved approximately $35000. Am I eligible to apply for a home loan with any lenders

  • Hi Danielle,

    Well done on saving so much! Your deposit needs to be 10% to 14% of the purchase price depending on if you’re a first home buyer and where in Australia you are buying (which state). For example in QLD the grant is $20,000 in some cases so a smaller deposit is needed than in other states.

    I’d say a little more of a deposit may be required in some states. It just depends on how much you want to buy a house for. Please call us on 1300 889 743 and ask for a bad credit specialist broker.

  • Emma

    Hi there, We have been living in WA Australia for 4yrs. We have excellent credit here. I entered into a NAP in NZ over a year ago and was discharged a few months ago. We can’t seem to get a straight answer as to how this affects us applying for a home loan next year and how much deposit we would need. One broker told us they couldn’t help us as they thought it was similar to a part ix …… so confused !

  • Hi Emma,

    Some of our lenders check your credit history in NZ however there are quite a few that ask you about your Australian credit history only. Veda Advantage is the company that holds everyone’s credit file and they operate in both NZ and Aus. The lender can search both if they want, but many of them don’t.

    In other words you’re in luck! Contact us on 1300 889 743 and one of our brokers can help you to get approved at a great interest rate. Or fill in our free assessment form and we’ll call you tomorrow.

  • Cass

    I want to pay out my debt agreement early even though it will still be on my credit history will banks lend if you have 10-15% deposit even though it’s still on your file as I know you mentioned banks won’t lend to people still in an agreement ?

  • Hi Cass,

    If you borrow 80% of the property value and you have paid off your debt agreement over 2 years ago then we can get you approved at bank interest rates (approx 3.8% as of today) as an exception to policy. Not everyone qualifies for this.

    If you are one day discharged and are borrowing 90% we can get you approved at a higher rate. We can then help you to refinance to a bank once you have paid the loan down to 80% of the property value. This is what most people that have come out of a Part IX do.

    If you complete this form then we can do a full assessment

  • Cass

    Even if you have shown initiative to pay off like 3 years early ?

  • I’m impressed that you’ve paid it off so quickly, however the banks are far less optimistic! They cannot lend over 80% as the LMI providers would decline it.

  • Jessica

    Ill soon be out of my agreement. I dont have a deposit but am I still eligible for a loan at bank rates if i get the 20 000 1st home buyers grant and use that as a deposit.

  • Hi Jessica

    I’m assuming you’re in QLD. You can borrow 95% of the property value as a discharged part 9 however you need a high income. I’d say the $20,000 will not quite be enough as there is a lender risk fee and other purchasing costs which mean in most cases you would need to save $5,000 to $10,000 more for us to help you.

  • Courtney

    My husband will have finished paying out his agreement after 5 years in a few months. We are looking at buying land which is around $350K would this be possible once the agreement is finalised? We are in Victoria and have around $20k for the deposit. Thanks so much

  • Hi Courtney
    If you’ve got a Part IX it’s better to buy an existing property OR a new house that has just been built. We can finance land but you’d need a much bigger deposit as lenders are unlikely to approve over 80% of the property value.

  • Jessica

    Yes I am in Qld. High paying job. I earn 48 000 and have been with my employer for 4 years. I could come up with 5000 deposit. Would that be enough to be approved for a loan with a lender at bank rates

  • Hi Jessica,
    I’d say you’d need more to get a reasonable rate. You’d need to borrow 90% of the property value less any risk fee charged by the lender (typically 2.5%). To get bank rates we need you to be discharged 2 years and to borrow max 80% of the property value.

    Most people get approved at a higher rate then 2 – 3 years later we refinance to a bank rate. We take care of the entire process for you. So it isn’t 30 years at a high rate!

    Can your family provide a gift? If so then complete this form and we’ll work out the amount needed
    To get

  • Maralyn

    I was discharged from my agreement about 14 months ago. I have saved a 5% deposit and I have saved stamp duty. I have a well paying permanent job that I’ve had for 6 years. I see that you have 2 lenders that will lend 95%? Under what circumstances would a person qualify?

  • Hi Maralyn,
    It looks like you’d qualify now for a 95% loan. We’d need to assess your situation to be 100% sure but I expect you would be ok.
    The lender charges a risk fee which is similar to LMI
    That means that you may need up to 3% more as a deposit to cover the risk fee as well.
    If you’d like our help then please contact us

  • Maralyn

    Thanks so much. I’ll be in touch.

  • Nadine

    I have been on my debt agreement for 1 year.
    My partner and i have saved 20 000

    Is there any possibility of us getting a home loan together?

    We both have been with our employers for over a year have steady income

  • Hey Nadine,

    If you haven’t finished paying off your Part IX debt agreement then you can’t qualify for a home loan. To qualify, you’ll also need around 16% of the purchase price as a deposit. A larger deposit may qualify you for standard bank interest rates. Please call 1300 889 743 to discuss this directly with a bad credit specialist and find out what options are available.

  • Nickel

    Hello. I am currently in a part 9 debt agreement and I had the idea of using my home equity to help pay off the debt. Is this something that can be done?

  • Hi Nickel,

    You may actually be able to use the equity in your existing property to refinance your mortgage and pay out your part 9 debt agreement sooner. However, you’ll need to first be eligible to refinance. Please check out the “Paying off a part 9 debt agreement using home equity” page for details:

  • Brett

    Im currently in a part 9 agreemment which is due to come off my file and be fully completed july 2017.
    I live in victoria, am a potential 1st homebuyer and after july 1st will be entitled to 20k 1st homebuyers grant on a new home in regional vic and exempt from paying any stamp duty.
    Im looking at properties for 300k and was wondering what my chances would be of getting a product approved if i used the 20k fhog and 10k genuine savings as a deposit? (taking into account i wouldnt need funds for stamp duty)
    I am employed fulltime payg and earn 67k pa excluding overtime, my partner is on a carers payment which pays around 30k pa. We have 2 children and no outstanding debts

  • Hi Brett,
    This may be a possibility. The main issues would be:
    – Location: Lenders who accept a part 9 tend to be location sensitive. A category 1 or 2 location will be fine but unlikely a category 3 or ‘other’ location.
    – LVR: Borrowing 95% is possible but it’s expensive. Borrowing 90% is much better. When you account for lenders mortgage insurance (or equivilent risk fee) and other small costs you’d need approx $8k extra to be able to borrow 90%. If you can find a way to do this then that will mean a cheaper loan.

  • ashlea

    HI, My husband and i were in a part 9 agreement and have paid this out in full last october we are wanting to purchase another home as we sold out home in october we have little savings for the deposit. Is there anyway of getting a loan for our deposit ? with been in the part 9 last year

    thank you

  • Hi Ash
    It’s unlikely, you’d have to save up a deposit or ask for a gift from family to assist you.

  • Elizabeth

    I paid off my debt agreement last August. My partner and I are looking at buying our first home this year. We have saved $50k and my parents are using one of their investments properties to go guarantor for us. Will we be able to borrow money or do we have to wait a few years?

  • Hi Elizabeth,
    Yes we can help with this. Well done on saving $50k!
    The best way forward is if your parents increase their loan and then lend you enough so that you can borrow 80% of the property value on your own. Later you can increase your loan and pay them back.
    Alternatively we can go a guarantor loan but it is a little more expensive and complicated. If you’d like our help please contact us here

  • Nadine

    Hi. I just paid out my debt 9 early and together my husband and i have $250k put aside for a deposit (inheritance). We are always ontime with our rent and over the next 12 months we are going to save more. Will it be possible to get a loan with a standard bank after around 12 months of good savings and paying all bills on time? Thanks.

  • Hi Nadine,
    We can help you to buy with a specialist lender now and with a major bank once you have been discharged from your Part IX for 2 years. A specialist lender can lend you 95% of the property value and a bank can lend 80%.
    Most people get a loan with a specialist lender and then we refinance to a bank in two years time. That’s actually quite affordable esp if you have a large deposit. Not all banks accept this by the way, we’ve made special agreements with two banks to consider this.

  • Nadine

    Thanks for your reply :) your telling me we could actually go for a home loan tomorrow if we wanted? We do want to have a little bit of extra $$ behind us before we do get a home loan but its good to know the part 9 may not affect us as much as we thought :) house prices in the area we are looking at are under $700k so we would have over a third of that saved as a deposit !

  • Absolutely! We can give you a repayment quote over the phone pretty easily. I’ll shoot you an email and cc our Part IX specialist.

  • alli

    I was in a part 9 for approx 6 months and then paid it out in full in november 2016. My partner and i have approx $50g for a deposit and are only looking at a house for $155g (houses are cheap where we live) would i even be considered for a home loan with having a debt agreement in my past?

  • Hi Alli
    Yes you should qualify for a loan. However the lenders that accept a part 9 agreement on your credit file will often not lend in small towns.

    We only do loans under $300,000. I’ll email you with some options that may work.

  • Lewis

    Due to some bad gambling decisions, I ended up with significant debt and went into a part 9 agreement. The part 9 is all paid out and discharged but it will take another year or so to get it out of my credit file. Is it okay for me to get a home loan at 100% LVR with the help of a guarantor?

  • It may be difficult but it’s not impossible. Some lenders may be willing to help but you’ll need to prove to them that you’re credit worthy and that you’re financially stable and well right now. This means evidence of timely repayments and a good credit file since the debt agreement. Your guarantor must also be fully informed of your past credit issues and a letter confirming this and consenting to be the guarantor, must be signed by all parties. We have a few lenders in mind that may be able to help but we’ll need a bit more information. Please call 1300 889 743 or complete our free online application form to discuss in detail:

  • hes

    Me and my husband is in part IX at the moment and it is discharging in 2019.but we are happy to pay the remaining balance.and we have 20k deposit. can we get a loan for new land to build a house.and can we borrow 95% LVR.doesn’t matter interest rate high.

  • Hi Hes,
    I’d say $20,000 may not be enough of a deposit to get you over the line with a 95% loan. The reason being is that LMI would be included in the loan amount so in reality you’d get 92.5% or so rather than 95%.
    I’d recommend that you pay out your Part IX as soon as possible as the further in the past that it’s discharged the better for our lenders.
    Can you get a little more of a deposit? Say up to $30k or so?
    Also construction + part IX isn’t a good combination as the lenders that do one often aren’t good with the other. Are you able to buy a finished home?

  • hes

    Saving 30k is not a issue for us now also we are renting over last 12 months we can get that as a saving as well I think.
    About the construction- what do you mean?? So we can not get a loan if we need to go for a construction is that what you mean or its very tough to get a loan for construction…actually we are really wanna go for construction if we could ??
    Could you please help us ..!!

  • Hi Hes
    Your rental history can be counted as ‘genuine savings’ which shows you are good with your money. But it cannot actually be used as a deposit. I know this can be a little confusing so read this page for more info
    If you’d like to build a home then you’ll need to reduce your loan to be 80% or less of the property value and wait for your Part IX to be > 2 years discharged. So I’d strongly recommend that you find a complete property that way you can buy now.

  • Emma Heins

    Hi, My husband and I have paid out our Part 9 and it was removed from our credit file in May. We have approx $50k saved and wish to buy a house for approx $360k, is this likely to be achievable because it is only a few months since it was taken off our credit file?

  • Hi Emma,
    It depends, just to clarify when did you enter the part 9 and when were you discharged?
    Also were there any specific lenders that were involved in the part 9? As a general rule those lenders (and any lender that shares data with them) will not accept you for a mortgage. The good news is that in most cases we have plenty of other options to choose from, it’s just a matter of applying with the right lender.

  • emmalousho

    We commenced in Api l 2012 , we have paid it out and have a letter stating it is gone. Dated May 2017. Citibank and HSBC were involved.

  • Hi Emma,
    Yes we can help with this and likely you’ll be eligible for discounted rates as well. I’ll email you and cc one of our part 9 lending specialists. They’ll check your credit file before making a recommendation so we can both have confidence that you’ll get approved.
    FYI if the Part 9 is still listed on your credit file we can still help however the choice of lenders would be different.

  • emmalousho


  • emmalousho

    When can I expect to be talking to some one with some timeframes on applications?

  • I’ll see if they can call you today. But if not then they can call you tomorrow.
    As for an application it would depend on which lender we recommend that you decide to go with. As a general rule the lenders with the lowest rates tend to be slower because they get inundated with applications.

  • Tamara Manson

    We have 1 year left on our debt agreement, would we be eligible for a first home buyers grant?

  • Hi Tamara,
    Your debt agreement doesn’t affect your first home owners grant eligibility. For a home loan however you’ll need to pay out your part 9 agreement before you can qualify.

  • Hardik

    I paid off my debt agreement last June. I’m looking at buying my first home next year and have saved $30k so far. Will I be able to borrow money to buy the home or do I have to wait a few years?

  • Hi Hardik. Yes we can help with this. Good to know that you’ve saved $30k!
    Most of the banks would require at least 12 or 24 months after you clear off from your agreement to apply for a home loan. We have a couple of lenders who would be willing to lend to you as it’s been more than 6 months that you have paid off your agreement. Please fill in our free assessment form or give us a call on 1300 889 743 and we’ll be able to identify the most suitable lender for you.

  • Joel Nichols

    I paid off my part IX in August 2016 and it should have come off my file in August 2017. Without a deposit are my wife and I able to borrow using the equity in our current home in lieu of deposit? We own our house outright and only have a car loan and credit card with $1000 limit.

  • Hi Joel,
    Yes you can use the equity in your current home. I’ll email you and cc one of our experts in bad credit lending. Although you’ve now got a clear credit history any lenders involved in the Part IX will not lend to you and some others may be aware of the Part IX even though they were not part of it.

  • Eureka

    I’m in a debt agreement and currently midway through it. I still owe $15,000 in the agreement. I wanted to know if a person who is in year 3 of a 5 year debt agreement still get a loan to buy land?

  • Hi Eureka,
    If you haven’t finished paying off your Part IX debt agreement then you can’t qualify for a home loan. Once you finish paying the agreement completely, then there are some lenders who could lend you 90% of the property value. However, we can refinance your current mortgage (if you have any) to pay out your agreement with few specialist lenders. You can borrow up to 80% of property value if you’ve been in the agreement for at least 12 months and have made perfect repayments for the last six months.

  • Eureka

    It seems I should focus paying off my agreement and contact you guys later. I could pay off it the remaining amount in 6 months time. I’ll call you guys thereafter.

  • starr

    I’m currently on a part 9 arrangement because I defaulted on my car loan repayments about 15 months back. I make weekly repayments of $500 and it shouldn’t take me more than 3 months to clear my debt agreement. I want to refinance my my home loan to a cheaper interest rate because I believe my finances are getting better. Can I refinance before completing the part IX debt agreement?

  • Hey Starr.
    You can’t refinance with most major lenders during a part IX agreement. However, you can find a specialist lender to refinance your current mortgage to pay out your agreement but we advise you to wait as you don’t have much debt owing ($1,500).
    More importantly though, the debt agreement will remain on your credit file for up to 7 years since entering into the agreement. You’ll need to wait another 6 years in order to refinance with a mainstream lender and get a cheaper interest.
    If you refinance now, there are certainly specialist lenders who can help but you’ll be charged a rate 2-4% above the Bank Standard Variable Rate.

  • Rachael

    Hi! We currently have a part9 in hubbys name which will be paid off in 10 weeks time (3 years earlier than Fox Symes have given us) after saving 20k (which would take us about 20 weeks) would we be eligible to get a home loan or is it wishful thinking? We would qualify for first home buyers in vic too (also currently paying rent aswell as being able to pay off our debt agreement early)

  • Hi Rachael
    Once you are discharged you can qualify to borrow 95% of the purchase price including LMI. So as a rough guide you’ll actually receive 92%.
    A savings history of your own will help us a lot. The other critical factor will be your location and the valuation of the property. If you don’t mind me asking what area are you planning to buy in?

  • Rachael

    There are two areas we will be possibly looking in
    One is a category 1 area and the other is a category 2 area :)

  • That’s great! And thanks for talking my language :)
    If you can let me know the postcodes I can do another check as well as we use lenders that don’t use Genworth or QBE. If it’s Cat 1 or 2 with Genworth then it’s very likely ok for other lenders, but not always. So if you let me know the exact postcodes then I can check for you.

  • Rachael

    Awesome!! The two postcodes are 3429 and 3438 :)

  • Postcodes 3429 & 3438 are acceptable to 95% LVR for someone with a Discharged Part IX agreement up to a maximum loan size of $650,000.

  • Rachael

    Awesome! So just to clarify – would a 10% deposit be 10% genuine savings plus the first buyers on top of that? As in the postcode 3438 we’re eligible for the 20k fhog or can we use that as part of our deposit? Home loans confuse me a lot haha

  • For this loan type your deposit can come from anywhere e.g. a gift. It doesn’t need to be genuine savings.
    If you can let me know the following I can let you know how much you need:
    – Purchase price
    – If you are buying an existing home, a new home or building a home

  • Rachael

    No more than $550k hopefully and already established as I heard it’s harder to build after having a part9

  • Allow for 8% of the purchase price to cover the deposit and LMI.
    Allow for $1,500 for conveyancing
    You can work out the grants and stamp duty here
    FYI I think an established home doesn’t get a grant in VIC

  • John

    Hi! I paid off my part ix debt agreement over a year ago now. Reason for the debt agreement was serious illness and surgery. My wife and I are looking to buy a home in the next 12-18 months. We have about $5k in savings at the moment and hope to have $50k comfortably within 12 months. My wife has no history of bad credit. We both have good long term jobs and I earn $100k and she earns about $80k (gross). Just wondering when we can access my borrowing power and the best way to structure savings (i.e. just having it in her name, in joint names)? We would be looking at a property around $650k-$700k, established and in postcode 4031. Is this scenario achievable? Or would we need to save 20%?

  • Joey

    Hi i was discharged from a part 9 debt agreement 3 years ago, started agreement 1st june 2015 and was discharged 3 months later in september 2015, i have saved 20,000 dollars and qualify for home owners grant in victoria, would i be able to get a loan or will i need to save more? Thanks

  • Hi Joey,
    Most major lenders will provide 80% home loans after you’ve been discharged for 24 months after the agreement while some specialist lenders may go up to 95% of the property value. Since it’s already been more than three years, you can go with a major lender and achieve more as well. Call us on 1300 889 743 or enquire online and we’ll help you find a bank with which you could borrow more.

  • Hayley

    Hello. I am looking into entering a part IX debt agreement for $15000. This will be paid off in roughly three months or sooner with the sale of our home as we’re moving. When would I be eligible to apply for another home loan again? Do I have to wait for the NPII to clear? The next home loan will be in both our names (I’m the only one pending the part IX) and in the 3550 postcode. I’m concerned that the part IX will severely impact me applying for another home loan in two years, despite our ability to save substantially during that time.

  • Hi Hayley,
    Yes, banks want you to clear off from the part IX debt agreement and then apply for a home loan. Even then, getting an approval from a major lender is quite difficult as they would require certain time, usually 12 months to approve the loan after clearance of the agreement. Luckily, there are non-bank lenders who can lend you. Call us on 1300 889 743 or fill out our online assessment form and find out the best available deals.

  • Woodhouse

    Hi there, my partner is currently nearing the end of his part IX agreement, which he got when he was left with significant debt after he divorced his ex wife. He’ll have paid it off earlier than the schedule, and it was for $65,000. Before this he’d never so much as defaulted on anything.

    We’re looking at buying a home in the future, preferably in the suburb of Walkerston, near Mackay in Queensland (4751 postcode). We would have a minimum of $20,000 deposit saved by this time, and would be eligible for First Home Buyers grant as well.

    How long until we’d realistically be able to look into a home loan? I’ve heard a bank won’t touch us for 7 years afterwords, which I’m hoping isn’t true.

  • Hi Woodhouse,
    Usually, major lenders have such restrictions for long periods. There are a few prime and specialist lenders who can assist you without such time restrictions and may lend up to 90-95% of the property value as well. Besides, you could get a home loan only once you have cleared off from your agreement.
    Call us on 1300 889 743 or fill our online enquiry form and speak with a bad credit home loan specialists.

  • Ken

    Hey HLE,
    I have a part 9 on my file which is due to drop off in May 2020. I’ve paid off the part 9 early and was hoping there are creditors who will be able to give me and husband a home loan.

  • Hi Ken,
    If you’re able to provide a discharge letter, there are some lenders who will consider applicants who only recently completed their part IX agreement. Once you’re out of part IX give us a call or fill in our online assessment form:

  • Madina

    Hi, if I commit to saving a 20% deposit, will that be looked favourably by banks even with a bad credit history? I have a part 9 debt agreement not yet paid (ongoing) and a default.

  • Hi Madina,
    You’d need to be out of the part 9 agreement to qualify for a home loan. There are a few lenders who can work with a default however, you would need to be out of the part 9 agreement first. You would be looked favourably, if you’ve saved up at least 16% of the purchase price as a deposit and completed the part 9 agreement more than 12 months ago.

  • Madina

    Umm.. okay. My understanding is that the part 9 debt agreement falls off my credit file after five to seven years. Is that not so?

  • Hi Madina,
    Most negative or adverse events will fall off your credit file in five years. However, the five year mark does not automatically erase the debt particularly if it’s an unpaid debt. You need to be discharged from part 9, once it’s paid off then the term is five years.

  • Jace

    Hi, I got discharged from my part 9 in May of 2018 but I’ve been told that it stays on my credit file for 5 years which means it’s 2021 for me. What if I have a 10% deposit, could it potentially work?

  • Hi Jace,
    Since you completed the part 9 agreement more than 12 months ago, that’s acceptable to some lenders, however, you’d still need to have 16% of the purchase price as the deposit and a good reason for being in the debt agreement in the first place.

  • Kale

    Hi there, I need some clarification. I had a small amount of bad credit it was $450 but it’s cleared now as I was on a part 9 agreement. I’m currently on Centrelink benefits and have just started working full time. Considering this can I get a home loan?

  • HI Kale,
    Most lenders require 12 months to have passed since the part 9 agreement was cleared. We have lenders who can consider borrowers who’ve only recently started working again. It looks doable provided you have around 16% of the purchase price as the deposit. We will need to do a full assessment to be sure. Please fill in our free assessment form: so one of our specialist brokers can get back to discuss your situation.