Read our

Recent Articles

Can You Get a Mortgage After a Debt Agreement?

By Administrator 02 April, 2013

Many people ask the same question – will I be prevented from getting a home loan in the future if I enter into a Debt Agreement or a Personal Insolvency Agreement?

The answer is: not necessarily.

It will of course depend on your financial circumstances at the time and the lender as each lender will assess your application differently using their criteria, but in our experience our clients have been able to get loans after successfully completing their agreements.

A few things to be aware of before entering into a Debt Agreement or a Personal Insolvency Agreement:

  • Both of these agreements will show up on your credit file for seven years from when you first entered into them. Whilst the agreement is still on foot you won’t be able to get new credit.
  • Once you have completed your agreement it will be updated as such on your credit file. This notation will remain in place until the full 7 year period has lapsed. So if you complete your agreement after 3 years, it will stay on your credit file for another 4 years.
  • After the seven-year period has lapsed your credit file should be fully restored. This means all defaults previously listed on your file will be wiped (assuming you haven’t defaulted again since entering into the agreement).

You will find that entering into a Debt Agreement or a Personal Insolvency Agreement offers more flexibility compared to formal bankruptcy, compare the differences by clicking here.

To get more information about these agreements call our friendly personal debt advisors on 1800 676 598.