How to get a Home Loan After a Part 9 Debt Agreement
Who will give me a home loan after a part 9 Debt Agreement?
After completing a part 9 debt agreement in Australia, it can be challenging to secure a home loan, as your credit history will have been affected. However, there are still some options available to you:
Non Conforming lenders: Cater to borrowers with unique circumstances or credit issues, including those who have had a debt agreement. They may consider lending to you if you can demonstrate that you have improved your financial situation since the debt agreement. Lenders that provide non-conforming loans are often more flexible when it comes to credit history. While they may charge higher interest rates or fees, these lenders might be more willing to work with you after a debt agreement. You can apply the next day for a home loan after a Part 9 Debt Agreement has been completed up to 95% LVR in high population areas.
Waiting period: It’s important to note that the impact of a debt agreement on your credit history will reduce over time. In general, a debt agreement stays on your credit file for five years. By waiting until your credit file clears and working to improve your credit during that time, you may have a better chance of securing a home loan with a mainstream lender.
Guarantor loans: If you have a family member or friend willing to act as a guarantor for your loan, this could increase your chances of approval. The guarantor’s financial stability can help to offset the impact of your debt agreement.
Deposit and savings: Demonstrating that you have a strong savings history and a substantial deposit can help to increase your chances of securing a home loan. Lenders may be more willing to work with you if they see that you have managed to save money despite your past financial challenges.
It’s important to consult with a mortgage broker or financial advisor who has experience with borrowers who are applying for a home loan after a part 9 debt agreement. They can help you find suitable bad credit home loan and guide you through the application process.
Ray Ethell offers a wealth of experience to his clients, gained from over 20 years in the Finance industry, and prides himself on providing reliable customer focused service. As an independent mortgage consultant, Ray is able to find a product tailored to his clients’ individual needs, with relevant unbiased advice and recommendations.
- Cert lV in Financial Services (Mortgage Broking)
- Diploma in Financial Services (Mortgage Broking)