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Bankruptcies and Consumer Proposals

We can work to find the financing you need to restore your credit back to good standing. Our team of mortgage professionals will work with you to find the right option!

Life After A Bankruptcy Consumer Proposal

A bankruptcy is when you assign (give over) everything you own to an Insolvency Trustee (Licensed) in exchange for eliminating your debts. Sounds straight forward but there are rules and guidelines to follow and they can differentiate in every province. Be sure to contact your local Licensed Insolvency Trustee to get accurate and up to date information. The process is governed by federal law and is a legal procedure.

What are some of the options to get a mortgage while in a bankruptcy?

How do I refinance a home if I’ve had a past or current bankruptcy?
The key to refinancing a mortgage while in a bankruptcy consumer proposal is choosing the right team. There are a number of lenders that look at the big picture. The right team of mortgage professionals can help connect you with those lenders.

How do I purchase a home if I’ve had a past or current bankruptcy?
A previous bankruptcy consumer proposal can affect which lenders will consider you for a mortgage. Don’t worry it’s not the end of the world. There are two approaches that can be used to help you purchase that home.

What are some of the common options to get a mortgage with a bankruptcy consumer proposal?

How do I refinance a home if I am in a proposal or recently paid one off?
In the mortgage lending world there’s a place for most situations. So refinancing while in a proposal is possible. Alternative lenders are willing to work with you to off pay consumer proposals. A mortgage refinance can be put in place that can help your credit recovery.

Can I buy a home if I am currently in consumer proposal?
There are a number of lenders that will consider offering you a mortgage while in a bankruptcy consumer proposal. Private mortgage lenders would be the main option. Institutional mortgage lenders would require that you payoff your proposal prior to closing a mortgage on your new home.

The down payment required whether you are in a consumer proposal or discharge from one will be 20% of your homes purchase price (subject to change). The more money you have to put down a purchase the more lenders you’ll have access too.

Why you should pay off your consumer proposal early?

Paying off your consumer proposal early is the best way to improve your credit. It will allow you to apply for credit sooner and open more doors.

Looking for more information or help; give us a call today to find out more.