Finishing a Part 9 debt agreement is a significant step, and the question most people have immediately after is whether buying a home is still on the table. The short answer is yes, though the path looks different depending on where you are in the process and which lender you approach.
What most people don't realise is that lenders don't all read a completed debt agreement the same way. Some specialist lenders will look at an application soon after completion. Others want a cleaner credit file before they're willing to consider it. That gap between lenders is where the conversation with a broker makes the most difference, because applying to the wrong lender doesn't just mean a decline, it leaves an enquiry on your credit file that makes the next application harder.
Our team helps buyers navigating home loans after past credit issues in Springfield and Ipswich, QLD, comparing options across 60+ lenders to find the ones whose credit policies actually fit your circumstances.
Here's what you need to know before you approach a lender.
Key takeaways
- A completed debt agreement stays on your credit file for five years from the start date.
- Specialist lenders can assess applications after completion; mainstream lenders typically want a cleaner file.
- A larger deposit and a demonstrated savings pattern are the two things that matter most.
Can you get a home loan after a debt agreement in Springfield and Ipswich?
Yes, you can get a home loan after a Part 9 debt agreement, and buyers in Springfield and Ipswich do it regularly. The key is understanding which part of the journey you're in and which lenders are willing to work with that position. A completed agreement is treated very differently from an active one, and timing matters a great deal.
While the agreement is active, no mainstream lender will consider an application. Once it's completed, specialist and non-conforming lenders will often assess it, subject to your deposit, income stability and the overall picture on your credit file. Two years after completion, some mainstream lenders may re-enter the conversation, particularly if you've rebuilt a clean repayment history since.
How do lenders assess a borrower who's had a debt agreement?
Lenders look at a debt agreement as a serious credit event, not a permanent disqualification. What they're actually assessing is the story around it: what caused it, whether it's completed, how long ago it ended, and what your financial behaviour has looked like since. That narrative matters as much as the listing itself.
The credit file tells most of the story. A Part 9 debt agreement stays listed for five years from the date it began, or two years from the date it was completed, whichever is later, according to the Privacy Act 1988 and the Credit Reporting Code administered by the OAIC. A completed agreement shows as completed, not active, and that distinction moves lenders.
On top of the agreement itself, lenders also check for any defaults, court judgments or missed repayments sitting alongside it. Each default listing stays on the file for five years from the date it was listed, regardless of whether it's been paid. A paid default updates to show "paid", but it doesn't disappear early. Lenders look at the full picture, not just the agreement in isolation.
The clients we see after a debt agreement often assume the credit file is the whole problem. It's usually only part of it. What lenders are really looking for is evidence of what changed, and a consistent savings history since completion carries more weight than most people realise.
Mel Wright · Director and Principal Mortgage Broker, Zest Mortgage Solutions · Chat to Mel →
What do you need to qualify for a home loan after a debt agreement?
There's no single checklist that applies across every lender, because specialist lenders set their own credit policies. That said, the factors that consistently improve an application look like this:
What lenders typically want to see:
- ›Completed agreement: the debt agreement must be finished, not active. No specialist lender will consider an application while a Part 9 is in force.
- ›Deposit size: a larger deposit reduces the lender's exposure. Most specialist lenders want to see a genuine deposit of at least 10% to 20%, not a gifted or borrowed sum, and the amount of equity required tends to increase with the severity of the credit history.
- ›Demonstrated savings pattern: a consistent record of saving since completion shows the behaviour has changed. Six to twelve months of genuine savings in your name is what most lenders look for.
- ›Stable income: full-time permanent employment is easiest to work with. Self-employed applicants and those with casual or contract income can qualify, but the income evidence needs to be clear and consistent.
- ›No further adverse listings: new defaults or missed payments after the agreement is completed substantially reduce your options. Lenders want to see that the credit file has been clean since the agreement ended.
- ›Time since completion: the further you are from the completion date, the broader the lender options become. Some specialist lenders will consider an application from day one of completion; others want twelve months or more.
Source: OAIC Credit Reporting Code (Privacy Act 1988 Part IIIA).
What does it cost to borrow after a debt agreement?
The honest answer is more than a standard home loan, at least initially. Specialist and non-conforming lenders price credit events into their rates, so the loan you secure after a debt agreement will carry a higher rate than you'd see on a mainstream product. That higher rate is the cost of access. The strategy is to use it to get into the market or refinance to a more competitive product once the credit file is clean enough for a mainstream lender, which typically takes around two years of clean repayment history after the specialist loan settles.
You'll also need a larger deposit than a standard application. Lenders mortgage insurance is generally not available at the credit profile that comes with a completed debt agreement, so the deposit does the work that LMI would otherwise cover. The lower you can get the LVR, the more lenders are willing to consider you and the better the terms available.
For buyers in Springfield and Ipswich, most of the suburbs in the approved set sit under the median ranges that would require very large deposits to access. CoreLogic data shows Goodna with a house median of $720,000, Raceview at $722,000, and Booval at $700,000, which gives a realistic entry point at the 80% LVR level without needing to borrow at the most stretched end of a specialist product.
Source: CoreLogic (via YIP, mid-2026).
Get in touch Need help with a home loan after a debt agreement? We're a local team who understand how lenders actually assess your situation, not just your rate. We'll compare your options across 60+ lenders to find the right fit.
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How long does it take to get approved after a debt agreement?
The timeline has two stages: getting the specialist approval, and then refinancing to a mainstream product when the time is right. A specialist approval, once you have the right deposit and a clean repayment record since completion, can move as fast as any other application. The lender's assessment process isn't longer because of the credit history; it's the preparation beforehand that takes time.
The refinance to mainstream is typically available around two years after you've settled the specialist loan, assuming the repayments have been met on time throughout. That is the moment the credit file starts looking attractive to mainstream lenders again, and the rate you access at that point reflects a much more competitive market. Most buyers who take this two-stage path end up in a mainstream product within three to four years of settling their specialist loan.
When does borrowing after a debt agreement not make sense?
There are two situations where pushing ahead isn't the right move. The first is where the credit file still has active problems alongside the completed agreement, particularly defaults or judgments that are recent and unpaid. A specialist lender will look at the whole file, not just the agreement, and a cluster of recent adverse listings pushes even specialist options into uncomfortable territory. In that case, spending twelve months clearing the file and building savings is usually worth more than applying now at the worst available terms.
The second situation is where the deposit is very small and the only way to make the numbers work is to stretch into a specialist product at the highest LVR it offers. Borrowing at a high LVR with a specialist rate means the repayments are doing very little to build equity in the early years, and a softening in property values could leave you in a difficult position before the refinance window opens. If the deposit isn't there yet, continuing to save is often the stronger position, even if it's a frustrating one to sit with.
How do mortgage brokers help buyers get approved after a debt agreement in Springfield and Ipswich, QLD?
The lender choice is where the outcome is decided for buyers in this position. Specialist and non-conforming lenders each have their own credit policies, and those policies differ in ways that don't show up on any public-facing comparison. Three differences move the result:
- ›Time-since-completion policy: some specialist lenders will assess an application from the day the agreement is completed; others require six months or twelve months of clean history before they'll look at it. The right lender depends on exactly where you are.
- ›LVR appetite: the maximum LVR a specialist lender will accept for a completed debt agreement varies between lenders. A lender willing to go to 80% changes the deposit required and whether the purchase is even possible at your current savings level.
- ›How they treat income: casual, contract and self-employed income is read differently by specialist lenders than by mainstream ones. Which lender fits depends on your employment type, not just the credit file.
Whether those terms are available to you depends on which lenders your broker has access to and on your specific circumstances, which is worth a conversation before you apply to anyone.
If I were in this position, I'd want to know the refinance plan before signing anything. The specialist loan is a bridge, not a destination. Knowing which mainstream lender you're likely to refinance to, and what the file needs to look like by then, makes the whole two-stage process feel much more manageable from day one.
Mel Wright · Director and Principal Mortgage Broker, Zest Mortgage Solutions · Chat to Mel →
What approval challenges do buyers face after a debt agreement?
The hurdles worth understanding:
- ›Multiple enquiries on the credit file: applying to the wrong lender doesn't just mean a decline. Each application leaves an enquiry listed for five years, and a cluster of recent enquiries signals desperation to the next lender who looks. Getting the right match before applying is what protects the file.
- ›Deposit sourcing: the deposit needs to be genuinely saved, not gifted or borrowed. Specialist lenders look closely at the origin of funds, particularly where the credit history includes a debt agreement, because gifted deposits don't demonstrate changed behaviour.
- ›Additional defaults alongside the agreement: a debt agreement on its own is manageable. A debt agreement plus two unpaid defaults from the same period is a different conversation, and the options narrow considerably. The credit file needs to be reviewed in full before any approach to a lender.
- ›The serviceability test: specialist lenders still apply the APRA serviceability buffer, adding approximately 3.0% to the assessment rate, which means you're assessed on a rate well above the actual product rate. Income needs to service the loan at that elevated assessment figure, and for buyers stretching into a specialist product the numbers can be tight.
Source: APRA.
Frequently Asked Questions
How long does a Part 9 debt agreement stay on my credit file?
A Part 9 debt agreement stays on your credit file for five years from the date it began, or two years from the date it was completed, whichever is later. Completion updates the listing but doesn't remove it early.
Can I apply for a home loan while my debt agreement is still active?
No, mainstream and specialist lenders won't consider a home loan application while a Part 9 debt agreement is active. You'll need to wait until the agreement is formally completed before any lender will assess it.
Do I need a bigger deposit after a debt agreement?
Yes. Lenders mortgage insurance is generally not available at this credit profile, so your deposit does the work that LMI would otherwise cover. Most specialist lenders want a genuine saved deposit rather than a gifted one.
What's the difference between a specialist lender and a mainstream lender for this situation?
Specialist lenders set their own credit policies and will assess applications that mainstream lenders decline outright. They price the risk into the rate, and the plan is to refinance to a mainstream product once your file is clean enough, typically around two years after the specialist loan settles.
Will applying to multiple lenders hurt my chances?
Yes, each credit application leaves an enquiry on your file for five years, and a cluster of recent enquiries makes each subsequent lender more cautious. A broker identifies the right lender before any formal application is made, protecting your file.
Should I use a mortgage broker or go directly to a lender after a debt agreement?
A mortgage broker, every time. The specialist lender market isn't accessible through a branch or a comparison site, and applying to the wrong lender costs you an enquiry on your file. A broker who works with non-conforming lenders regularly knows which ones fit your position before you apply.
Your Next Steps
Buying a home after a debt agreement is a two-stage process, and the first stage is knowing which specialist lenders will look at your application right now and on what terms. Getting that picture clear before you apply to anyone protects your credit file and gives you a realistic timeline for the refinance that follows.
If buying in Springfield and Ipswich is on your horizon, the next step is simple. Get in touch with the Zest Mortgage Solutions team or call (07) 3461 6499. We'll work through where you stand across our 60+ lender panel.
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External Resources
Zest Mortgage Solutions · Springfield and Ipswich, QLD · Wright Financial Group Pty Ltd (ABN 48 635 310 084), authorised under Australian Credit Licence 517192 · General information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.
