Home Loans After a Debt Agreement in East Brisbane, QLD, Your Path Back to Approval

A Part IX debt agreement feels like the end of the road, but most people who complete one are in a stronger financial position than they were before it started. The agreement is finished, the debt is gone, and the question most people ask next is: can I still buy a home?

The answer is yes, though the path looks different from a standard application. Lenders who work with past credit events assess the full picture, not just the listing on your file. Whether your agreement completed six months ago or three years ago, where you stand and which lenders will consider you depends on timing, your deposit, and what your credit file shows since the agreement ended.

Our team works with buyers across East Brisbane, QLD who are rebuilding after past credit events, comparing across 60+ lenders. The home loan options for buyers with past credit issues are wider than most people expect, and the difference between lenders is where the outcome is decided.

Can you get a home loan after a Part IX debt agreement in East Brisbane, QLD?

Yes, you can get a home loan after a Part IX debt agreement, though the lenders willing to consider your application are specialist and non-bank lenders rather than the major banks. Most mainstream lenders will decline an application while the debt agreement is still listed, or in the period immediately after it completes. Specialist lenders assess the full picture, including how you have managed your finances since the agreement ended, and many buyers in East Brisbane, QLD have purchased successfully within two to three years of completion.

How do lenders read a Part IX debt agreement on your credit file?

A Part IX agreement is a formal arrangement under the Bankruptcy Act 1966 that settles your debts with creditors outside of bankruptcy. It is a serious credit event, and it sits on your credit file for five years from the date the agreement completes. During that window, most mainstream lenders will not approve a home loan application. Specialist lenders, however, are set up to assess exactly this situation.

What specialist lenders look for is conduct since completion: consistent repayment of any remaining obligations, no new defaults or missed payments, and savings history that shows your financial position has stabilised. The agreement itself is treated as a fixed point in the past, not as evidence of ongoing financial difficulty. Timing matters a great deal here, and so does what your file shows from the date of completion forward.

What do lenders actually check when your credit file shows a debt agreement?

Lenders assessing a post-agreement application look at a specific set of factors, and the weight they place on each one differs between lenders on the specialist panel.

What the assessment covers:

• › Time since completion: the further past the completion date, the more lenders are willing to consider the application and on better terms.
• › Conduct since completion: no new defaults, missed payments or credit enquiries since the agreement ended is the clearest signal a lender can see.
• › Deposit size: a larger deposit reduces the lender's risk materially; most specialist lenders expect more than the standard 5% and want to see genuine savings.
• › Employment stability: steady income from the same employer, or consistent self-employment in the same field, demonstrates capacity to service the loan.
• › Explanation of the agreement: most specialist lenders want a written explanation of the circumstances that led to the agreement. A one-off hardship event reads very differently from a pattern of overcommitment.

How much can you borrow, and what deposit do you need in East Brisbane?

Borrowing capacity after a debt agreement is assessed on the same serviceability mechanics as any other application, with one key difference: the specialist lender's maximum LVR is lower than a mainstream lender's, which means a larger deposit is required. Typical maximum LVRs from specialist lenders in this situation sit in the range of 70% to 85%, depending on how long ago the agreement completed and what the credit file shows since then. A deposit of 15% to 30% is the realistic range for most borrowers.

In East Brisbane, where CoreLogic data shows unit medians from $785,000 in Woolloongabba to $961,250 in Carina Heights, most buyers rebuilding after a debt agreement are targeting the unit market rather than houses, whose medians sit well above $1,000,000 across every approved suburb in the area. A 20% deposit on an $850,000 unit purchase requires $170,000 in genuine savings, plus purchase costs. That is a meaningful target, but it is also the kind of deposit that opens the most competitive specialist lender options.

The APRA serviceability buffer of 3.0% is applied on top of the actual loan rate, so the assessment rate is higher than the rate you pay. Specialist lenders price above mainstream lenders, which means the assessment rate for this kind of application is typically higher than for a standard loan. That affects your borrowing ceiling, which is why a broker's role in matching you to the right lender matters as much as it does.

Source: CoreLogic (via YIP, mid-2026) and APRA.

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Which government schemes can you use after a debt agreement?

Most government first-home schemes require the applicant to have a satisfactory credit history, and a Part IX listing on your file will typically disqualify you from mainstream scheme access while the listing is active. That said, it is worth understanding what becomes available once your file clears.

How the main schemes sit for buyers in this position:

• › First Home Guarantee (5% Deposit Scheme): no income cap since October 2025, and the East Brisbane price cap is $1,000,000, which covers the unit market. Credit history is assessed by the participating lender; specialist lenders are not currently part of the scheme, so this pathway opens once your file is clear enough for a mainstream lender.
• › Queensland First Home Owner Grant:$30,000 for a new home valued under $750,000. A debt agreement does not automatically exclude you; eligibility turns on whether you have previously owned a home in Australia, not on your credit file. Worth confirming your position with the Queensland Revenue Office.
• › Help to Buy: the federal shared-equity pathway, with income caps of $103,000 for singles and $165,000 for joint applicants for the 2026-27 year, and a price cap of $1,000,000 for East Brisbane. Participating lenders assess credit eligibility, so this pathway is available once a mainstream lender is willing to proceed.
• › Boost to Buy (Queensland): SEQ allocations are currently exhausted, so this pathway is not available to East Brisbane buyers regardless of credit history.

The realistic approach for most buyers in this position is to borrow with a specialist lender first, then refinance to a mainstream lender once the credit file is clear. That refinance is where the government schemes typically become accessible, and a broker can structure the initial loan with that transition in mind.

Source: Housing Australia and Queensland Revenue Office.

When does borrowing after a debt agreement not make sense?

If your agreement completed less than twelve months ago and your deposit is below 20%, the honest answer is that the timing is probably not right yet. Specialist lenders in this situation typically offer lower LVRs and higher rates, and if your deposit is at the low end of what they require, the loan structure will be under pressure from day one. Waiting another year, continuing to save, and letting the credit file age does more for your borrowing outcome than most other moves available to you at this stage.

There is also a cost to applying too early. Every credit enquiry appears on your file and stays there for five years. A decline from the wrong lender, or multiple applications run at once, creates a pattern that the next lender reads as financial stress. If your situation is not yet ready, holding off and preparing properly is almost always better than an application that does not proceed.

How does a mortgage broker help buyers with a past debt agreement get approved in East Brisbane, QLD?

The lender choice decides the outcome here far more than it does on a standard application. Three policy differences move the result for buyers coming out of a debt agreement, and they are not published side by side anywhere.

• › How long ago the agreement completed: some specialist lenders will consider an application the day after completion; others require twelve or twenty-four months to have passed. The difference determines whether you can act now or need to wait.
• › The LVR each lender will accept: a lender willing to go to 85% LVR changes your required deposit significantly compared to one capped at 70%, which can be the difference between buying now and waiting another two years.
• › How the hardship explanation is weighted: some lenders place significant weight on a well-structured letter of explanation; others assess the file purely on the numbers. Knowing which lenders are which is where specialist panel access earns its value.

Comparing across the right part of the panel is what finds the option that fits your timing, your deposit and your credit file as it actually stands.

What approval challenges do buyers with a debt agreement face?

The main hurdles, and how they are managed:

• › Narrow lender panel: most of the 60+ lenders on a broker panel do not write loans for buyers with an active or recently completed Part IX listing. The specialist segment is smaller, and knowing which lenders are actually open to the file is the starting point.
• › Higher rate and rate premium: specialist lenders price above mainstream lenders, which affects both repayments and the assessment rate used to calculate borrowing capacity. The gap narrows once the file is clean and refinancing to a mainstream lender becomes possible.
• › Credit enquiry accumulation: every application lodged generates an enquiry that stays on the file for five years. Applying to the wrong lender, or to several at once, creates a pattern that narrows options further. One well-placed application through a broker is materially lower risk than testing the market yourself.
• › East Brisbane price levels: with unit medians ranging from $785,000 in Woolloongabba to over $960,000 in Carina Heights, reaching the deposit threshold that specialist lenders require takes longer in this market than in cheaper areas. Planning the savings timeline early is the most practical thing you can do before the application stage.

Source: CoreLogic (via YIP, mid-2026) and OAIC.

How do you get a home loan after a debt agreement, step by step?

Step 1: Talk to us

We start by reviewing your credit file, the completion date of your agreement, and your current savings position to work out which lenders are genuinely open to your application right now.

Step 2: Build your file and understand the timeline

We help you identify what needs to be in place before lodging, including the deposit target, any documentation around the hardship explanation, and how your credit conduct since completion will read to a lender.

Step 3: Match to the right specialist lender and apply

We identify the lenders on the panel whose policy fits your timing and deposit, prepare the application, and submit it to the one best-placed to approve it without adding unnecessary enquiries to your file.

Step 4: Manage approval through to settlement and plan the refinance

We support you through to settlement, and we map out the timeline to refinance to a mainstream lender once your credit file is clear, so the specialist loan is a stepping stone rather than a long-term position.

Frequently Asked Questions

How long does a Part IX debt agreement stay on my credit file?

A Part IX debt agreement stays on your credit file for five years from the date the agreement completes, whether it is paid in full or not. After that period the listing is removed automatically.

Can I apply for a home loan while my debt agreement is still active?

Some specialist lenders will assess an application while a Part IX agreement is still active or recently completed, though the pool of lenders willing to do so is narrow. Most mainstream and major lenders will decline the application at that stage.

What deposit do I need after a Part IX debt agreement?

Most specialist lenders in this situation expect a deposit of 15% to 30%, depending on how long ago the agreement completed and what your credit file shows since then. A larger deposit reduces lender risk and opens better options.

Will I need to explain the debt agreement to the lender?

Yes, most specialist lenders request a written explanation of the circumstances that led to the agreement. A clear, factual account of a one-off hardship event is assessed more favourably than unexplained ongoing financial difficulty.

Should I use a mortgage broker or go direct after a debt agreement?

A mortgage broker, every time. Specialist lenders are not on the high street, their policies differ significantly from each other, and a declined application from the wrong lender adds an enquiry to your file that stays for five years.

When can I refinance to a mainstream lender after starting with a specialist?

Most buyers refinance to a mainstream lender once the Part IX listing has dropped off their credit file, typically around two to three years after the agreement completes, depending on their overall credit position and LVR at that point.

Your Next Steps

Buying a home after a Part IX debt agreement is a realistic goal for most people who complete one, but the path to approval runs through a different part of the lending market than a standard application. The specialist lenders who will consider your file, the deposit they need, and the timing that gives you the best outcome are not the same for every borrower, and they are not advertised clearly anywhere.

If buying in East Brisbane after a debt agreement is on your horizon, the next step is simple. Get in touch with the AE Finance Solutions team or call 0422 868 524. We'll work through where you stand across our 60+ lender panel.

About the author Abel Desta Director & Mortgage Broker, AE Finance Solutions Abel Desta is the Director and Mortgage Broker at AE Finance Solutions, an East Brisbane brokerage. Specialising in home finance, he helps first home buyers, upgraders and investors across the East Brisbane region. Abel is a credit representative (467836) of LMG Broker Services Pty Ltd (ACN 632 405 504), Australian Credit Licence 517192, and compares loans across a panel of 60+ lenders at no cost to the borrower. Meet Abel → LinkedIn

AE Finance Solutions, QLD, Australia. This is general information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.