Yes, You Can Get a Home Loan With a Part 9
Almost nothing well-written exists for “I’m currently in a Part 9 — what are my options?” So here’s the verified answer, and it’s better than most people expect: some specialist lenders accept a current Part 9 agreement — and can even pay it out from the loan itself.
A Part 9 doesn’t put home ownership on hold for a decade. It narrows your lender list to specialists who assess the story behind the agreement — the same way they handle discharged bankruptcy and defaults.
What a Part 9 Actually Is (and Why Lenders Care)
A Part 9 debt agreement is a formal, binding arrangement with your creditors to pay back an agreed amount over time — a step short of bankruptcy, administered under the Bankruptcy Act. Here’s the part many borrowers don’t realise: entering a Part 9 is legally an act of bankruptcy, and lenders treat it as a serious credit event, not a payment plan.
That shows up in two places:
- Your credit report — the agreement is listed for 5 years from the day you entered it (sometimes longer).
- The NPII — a completed agreement is removed at the later of 5 years from entering it or the date it was discharged; a terminated agreement stays for the later of 5 years from entering or 2 years from termination.
During vs After: Your Options at Each Stage
| Your stage | What’s possible right now (July 2026 policy) |
|---|---|
| Currently in a Part 9 | Pepper accepts current agreements and can pay them out from the loan proceeds — up to 95% on a purchase, 85–90% on a refinance. Resimac’s tiers also take current agreements, graded by how long ago you entered it. |
| Completed (discharged) Part 9 | Pepper accepts a completed Part 9 or Part 10 from 1 day after discharge, up to 95% on a purchase. Resimac Specialist Clear requires the agreement discharged. La Trobe assesses by credit grade. |
| Completed and fully paid 2+ years ago | Mainstream territory starts to reopen — AMP, for example, wants a minimum of 2 years since the debt was fully paid, at up to 80% LVR. |
| Any stage | Firstmac, ING and Macquarie are hard declines — Part IX/X agreements and schemes of arrangement are outside policy entirely. |
Every scenario is assessed individually — tier, pricing and maximum LVR depend on the detail of your agreement and conduct.
Paying Out a Part 9 From the Loan: When It Helps
Rolling the remainder of your agreement into the new loan finishes the Part 9 at settlement — one clean debt, one repayment, and your file starts healing from a “completed” position rather than an open one. It tends to make sense when you’re refinancing with solid equity, or when the agreement’s remaining term would otherwise hold you in specialist pricing for years.
It’s not automatic, though. You’re converting agreed reduced repayments into interest-bearing mortgage debt — so the maths has to be done honestly, the same way we’d compare any debt consolidation. If finishing the agreement first and applying afterwards is cheaper, that’s what we’ll tell you.
Your Evidence Pack
Part 9 applications live or die on documentation. Have ready:
- Completion certificate(or a current statement of the agreement if you’re still in it).
- Payment history on the agreement — on-time payments to a Part 9 are themselves evidence of recovered conduct.
- Clean everyday banking — 3–6 months of statements with no dishonours or overdrawn days.
- The story, written down— what caused the debt, why it’s finished, what’s changed. Use our explanation letter template.
Whether you’re mid-agreement or years past it, we’ll tell you exactly where you stand — including whether waiting beats applying. Call 1300 088 065 or book a free assessment online.