Can I get a home loan with a part 9 debt agreement?
Last updated: 06 October 2025 | Estimated read time: 4 Minutes
Life doesn’t always go to plan. Unexpected events, like job loss, illness, or financial hardship, can make it difficult to meet credit obligations. For some, entering a Part 9 or Part 10 debt agreement may be a way to regain control and start rebuilding.
If you’ve been through this process, you might be wondering whether home ownership is still within reach. The good news is: there may be options available, especially if your agreement has been discharged.
Life is full of unexpected events that can result in financial strain. This can make meeting credit obligations difficult.
What is a debt agreement?
A debt agreement is a formal arrangement to help you repay your debts in a way that’s manageable. It’s often considered an alternative to bankruptcy and is based on what you can reasonably afford.
Your creditors must agree to the terms before it can proceed. Debt agreements fall under the Bankruptcy Act 1966 and come in two forms:
- Part 9 (Part IX) – For individuals with lower income and assets. These agreements typically last 3–5 years and offer more flexibility.
- Part 10 (Part X) – For individuals who are unable to repay debts at all. These are generally more complex and longer in duration.
For more details, visit MoneySmart or speak with a financial counsellor.
What to consider before entering a debt agreement
While debt agreements can offer relief, they also come with long-term implications, especially when it comes to applying for credit in the future.
Before entering into a debt agreement, it’s important to:
- Seek professional advice from a licensed financial counsellor.
- Understand how it may affect your credit score and borrowing ability.
- Explore all available options with support from services like the National Debt Helpline.
How does a debt agreement impact your credit?
Debt agreements are recorded on your credit file and may remain there for up to five years or longer in some cases. Your name will also be listed on the National Personal Insolvency Index (NPII), which is publicly searchable.
These records can make it harder to obtain credit, but they don’t necessarily mean your financial journey is over.
Can you get a home loan after a debt agreement
It’s possible, but it depends on your situation. If your debt agreement is still active, lenders may view it as an ongoing financial obligation, which could affect your borrowing capacity.
If your agreement has been discharged, some non-bank lenders, like Pepper Money, may be able to consider your application. We understand that financial hardship can happen to anyone, and we look at more than just your credit history.
How we may be able help
At Pepper Money, we take a real-life approach to lending. We’ll talk with you to understand:
- What led to your debt agreement
- Whether the life event is ongoing or resolved
- How long ago the agreement was entered
- Whether you’ve met all obligations
- If you’re planning to settle or pay out the agreement soon
We may be able to help with:
- Finalising a debt agreement
- Consolidating debt into your home loan to reduce the payments you may have to manage.
- Exploring home loan options once your agreement is discharged
- All applications are subject to our loan suitability and assessment criteria.
Let’s talk about your options
We believe that a credit setback shouldn’t define your future. If you’re ready to explore home loan options after a debt agreement, we’re here to listen and help.
Call our Lending Specialists on 137 377, enquire online or speak with your Pepper Money accredited broker.
Contributor | Neil Culkin, Head of Credit and Settlements
Neil has a 20-year career in credit provision. At Pepper Money, he oversees the underwriting and credit control of all consumer finance loan applications. He is also responsible for updating lending policies and guidelines. Read more.
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Resources to help with credit issues
It can be tough to recover from a credit event. We've put some resources together to help you get back on-track.
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