How soon can I move forward with obtaining a home loan after a Part IX debt agreement?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: How soon can I move forward with obtaining a home loan after a Part IX debt agreement?

Post by Otto Dargan »

Hi Malcolm,
Welcome to the forums and thank you for reaching out to us.

Prime lenders are very cautious when it comes to lending to borrowers who are under part 9 debt agreement, as it indicates you cannot manage your finances properly.

However, you can move forward with getting a home loan from specialist lenders after completing a part 9 debt agreement under the following circumstances:
  • Provide a valid reason for being in the debt agreement
  • You have completed the agreement more than 12 months ago
  • You are borrowing less than 80% of the property value.
  • There are no further credit issues besides the part 9 debt agreement that will remain in your credit file for more than 5 years.
  • You have made rent repayments on time
  • You must have at least 16% of the purchase price as a deposit.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How soon can I move forward with obtaining a home loan after a Part IX debt agreement?

Post by Otto Dargan »

Hi Malcolm,

Having a larger deposit means the lender will be taking less risk when taking on your home loan. It shows to the borrower that your past issues are behind you and you’ve saved up a deposit. However, the main reason is when you’re borrowing over 90%, most applications have to go through the mortgage insurer who are much stricter than banks.

The more amount you put down as a deposit, the less you'll borrow, meaning you'll pay less interest over the life of your loan. You would also be providing evidence to the lender that you have steady income flow and genuine savings, which would help in getting your loan approved, as the lender would be assured that you'd have means to pay off the loan.

Furthermore, if you borrow up to 80% of property value, you would be saving thousands by not having to pay Lenders Mortgage Insurance.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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