Part 9 Debt Agreement Home Loans

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 until the later of five years from when it was made or two years after it ends, is terminated or is declared void.
• 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.

How Long It Actually Shows: Credit File vs NPII

This is the part that trips people up, because there are two separate records to think about. Both use “later of” rules, but their end points differ:

Here is why the term changes what outlives the agreement. A three year agreement usually reaches the five-year credit-report anniversary after it ends, so that five-year date is commonly the later one. A five year agreement completed on schedule can remain on the credit report for roughly another two years, while its completed NPII entry generally reaches the later-of test at completion. Either way, this is a visibility question, not a rule that blocks you from applying for finance in the meantime, which is exactly the gap specialist lenders are built to work in.

During vs After: Your Options at Each Stage

The further along you are, the more the options widen:

1. 1Currently in a Part 9A small number of specialist lenders will consider a current Part 9 debt agreement, generally one entered some years earlier so there is a genuine payment track record to assess. Some can pay the agreement out from the loan proceeds at settlement. We confirm the live lender position for your specific file before applying.
2. 2Completed (discharged)Once the agreement is completed and your administrator confirms it, the specialist field widens. How soon, and on what terms, depends on how long ago completion happened and how clean your conduct has been since. We confirm each lender’s current position per file.
3. 3Completed & fully paid 2+ years agoAs the agreement drops off your credit file and your post-completion track record lengthens, near-prime and eventually mainstream lending come back into view. Some mainstream lenders want a minimum period, often a couple of years, since the debt was fully paid before they will look.

Part X is different: it is a Personal Insolvency Agreement (PIA), not a Part IX debt agreement. Its NPII record is permanent, so the Part IX completion and visibility timelines on this page do not apply. A Part X/PIA application needs separate lender-policy assessment.

At any stage, many mainstream and near-prime lenders decline Part IX debt agreements, Part X PIAs and schemes of arrangement, which is why the panel narrows to specialists who assess the story behind the arrangement.

Every scenario is assessed individually — tier, pricing and maximum LVR depend on the detail of your agreement and conduct.

Paying Out a Part 9 Early: When It Helps and When It Doesn’t

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.

When it helps: if you are relatively early into a longer, five year, home equity based agreement and you have the means to pay it out in full, doing so brings your completion date forward, removes the ongoing administrator oversight, clears the “currently active” flag that some lenders assess more cautiously, and frees up the borrowing capacity the repayments were absorbing.

What it does not do: paying out an agreement does not remove it from your credit report immediately. The removal date remains the later of five years from when the agreement was made or two years after it ends, so calculate both dates before treating an early payout as a credit-file shortcut. It also does not retroactively erase the event; a lender assessing you afterwards will still ask what happened and what changed.

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:

1. Completion certificate (or a current statement of the agreement if you’re still in it).
2. Payment history on the agreement — on-time payments to a Part 9 are themselves evidence of recovered conduct.
3. An updated credit file: pull your file from the major credit reporting bodies so you and your broker know exactly what is showing before a lender does.
4. Clean everyday banking — 3–6 months of statements with no dishonours or overdrawn days.
5. The story, written down — what caused the debt, why it’s finished, what’s changed. Use our explanation letter template.

The Lenders We Use for a Part 9 Debt Agreement

A small number of specialist lenders will consider a current or completed Part 9 debt agreement, generally one entered some years earlier. Part X is a separate Personal Insolvency Agreement and needs its own lender assessment. Policy in this area varies and moves, so we confirm the live position for your specific file before lodging. Each review walks through where the lender sits:

• Pepper Money review: one of the specialist lenders we most often turn to for a debt agreement file.
• Bluestone review: a specialist lender positioned for borrowers recovering from genuine financial difficulty.
• Liberty review: another specialist option, where we confirm the live position per file before applying.