Debt consolidation is new borrowing. A Part IX debt agreement and bankruptcy are different legal processes with significant consequences. If you own a home, seek independent financial counselling and legal advice before choosing an insolvency option.
Prepared for Reduce My Repayments by Monet Finance · Published 5 October 2026 · General information for Australian homeowners
Do not use the names interchangeably
If a service offers to “consolidate” debts, ask exactly what it proposes. Is it a new loan, an informal arrangement with creditors, a formal debt agreement or bankruptcy assistance? Request the product or process name in writing. Similar advertising language can hide very different outcomes.
Ask specifically about the home
Read AFSA’s guidance about property and bankruptcy. Ask an appropriately qualified adviser how your ownership, joint ownership and secured loans would be treated in your situation. Do not assume the home is protected because someone else also owns it or because mortgage payments are current.
If an agreement already exists
Bring the full agreement, statements, payment history and any completion or discharge documents to an assessment. Ask what is legally possible before considering new borrowing or early payout. A lender’s willingness to assess a loan does not replace advice about the existing arrangement.
Separate the advice roles
A mortgage broker can assess a potential lending pathway. A financial counsellor can help review debt options without selling a loan, and legal advice may be needed for property or insolvency consequences. Use the right adviser for each question instead of relying on an approval promise as a complete plan.
What to prepare
- The exact proposed or existing legal process.
- Agreement, completion or discharge documents.
- Property ownership and secured-loan details.
- Independent advice before signing a formal arrangement.
Your questions answered
Is a Part IX agreement a consolidation loan?
No. It is a formal debt agreement under bankruptcy law, rather than ordinary new borrowing.
Can you promise to protect my home?
No. Obtain advice about property consequences specific to your circumstances.
Is there a universal waiting period for a new home loan?
Do not rely on a universal promise. The legal status, credit position and lender policy need individual review.