Refinance and debt consolidation after a consumer proposal

The scenario

Consider a homeowner in Durham Region who has completed a consumer proposal but still carries mortgage debt and other obligations they would like to consolidate using the equity in their home.

By the time a homeowner in this position reaches out, the proposal is often recently completed, which means traditional financing is not yet available to them.

Why the banks say no

Traditional lenders decline applications like this because the consumer proposal was recently completed and the credit history has not yet been sufficiently re-established.

What we do

In a situation like this, we would arrange a private refinance that consolidates the remaining debt while preserving home ownership, giving the borrower a single, more manageable payment.

The outcome

Monthly obligations are reduced by more than $1,000, and the borrower keeps their home while rebuilding their credit.

The exit strategy

The plan is to move to a B-lender after about twelve months of consistent payments, then toward traditional financing as credit recovers.

Facing something similar? Learn more about mortgages after bankruptcy or a consumer proposal, or debt consolidation through refinancing.

This is an illustrative example based on the types of consumer proposal situations we regularly help with. It does not depict a specific client, and the names, location, and figures are representative rather than actual. Individual results vary and are subject to lender approval.