Can you get a mortgage after a consumer proposal?

Yes, it may be possible to get a mortgage after a consumer proposal.

A consumer proposal can affect which lenders are available to you, the interest rate you qualify for and how much down payment or equity may be required, but it does not automatically mean you cannot get a mortgage.

The details matter.

Do I have to wait until my consumer proposal is finished?

Not necessarily.

Depending on your situation, there may be mortgage options available while you are still in a consumer proposal. In other cases, waiting until the proposal has been completed and you've had time to rebuild your credit may give you access to better options.

The right approach depends on what you're trying to accomplish, your income, your credit history, the property and the amount of equity or down payment available.

What do lenders look at after a consumer proposal?

Lenders may look at more than the fact that you filed a proposal. They can also consider things such as your current income and employment, how you've managed credit since the proposal, your down payment or available home equity, your other debts and the circumstances that led to the proposal.

They may also want to see that you've started rebuilding your credit and are managing new obligations responsibly.

There isn't one magic credit score or waiting period that applies to everyone.

What if my bank says no?

A decline from your bank doesn't necessarily mean there are no mortgage options available.

Traditional banks generally have specific lending guidelines. Alternative lenders can sometimes consider borrowers whose situations fall outside those guidelines.

Depending on the circumstances, that could include a B lender or, in some cases, a private mortgage.

These options can come with higher rates and additional fees, so the question isn't simply, “Can I get approved?”

It's also, “Does this mortgage make sense for me?”

Can I refinance to pay off a consumer proposal?

In some situations, homeowners with enough equity may be able to refinance their home and use the funds to pay out a consumer proposal or other debts.

But refinancing isn't automatically the right answer.

We need to look at the cost of the new mortgage, the interest you're currently paying on other debts, your monthly cash flow and what the longer-term plan looks like.

Sometimes restructuring debt can create valuable breathing room. Other times, waiting or taking a different approach makes more sense.

The goal isn't just getting a mortgage

If alternative lending is the right solution today, it doesn't have to be the solution forever.

We can look at what needs to happen over the next year or two to strengthen your overall financial picture and work toward moving back to traditional lending when it makes sense.

A consumer proposal is part of your financial history. It doesn't have to define your financial future.

If you're wondering whether you can buy, renew or refinance during or after a consumer proposal, let's look at the whole picture before deciding what's possible.

Not sure what your options are?

Every situation is different. Let’s look at where you are today, where you want to go, and what mortgage options may make sense.