This should come as no surprise, but sometimes life throws you a financial curveball. Bankruptcy and consumer proposals happen. It doesn’t mean your life is over, and it doesn’t mean you won’t ever qualify for a mortgage again. The key here is to get a plan in place and show that you’ve got things under control. You must be able demonstrate to anyone considering you for financing that what happened in the past won’t happen again in the future. Here, we talk about getting a mortgage post-bankruptcy.

What’s the first step?

Mortgage financing post-bankruptcy is possible. It’s just different than your standard mortgage financing. Therefore, you will need to consider the following:

  • Firstly, financing will be dependent on how long it has been since you were discharged from your bankruptcy. Alternatively, how long since you completed your consumer proposal. Most lenders consider the discharge date on both to be your new ground zero.
  • Secondly, financing will be dependent on how you have been re-establishing your credit since your discharge date. Also, how in depth that credit is. A $700 Visa is nice, but a $5000 Line of Credit carries a little more weight.

How do I qualify?

In order to qualify for mortgage financing with a mainstream lender, they will want to see a minimum of the following before they will give you a mortgage. You must be discharged for at least two years, have at least a 5 per cent down payment from your own resources (although 10 per cent is a safer bet), two years of credit established through two trade lines with a minimum credit amount of $2500 each, and no late or missed payments. This would be the bare minimum to qualify.

As mortgage professionals, our job is to provide solutions and strategies for our clients. As such, we have access to lenders who aren’t mainstream. These alternative lenders will consider extending mortgage financing when clients have a larger down payment. You’re looking at a 20 to 25 per cent down payment minimum, and the interest rates will be a little higher than mainstream lending. Alternative lending isn’t for everyone, but it’s a great solution for some, especially those who have gone through a bankruptcy or consumer proposal.

So whether you’re looking for a plan to help you qualify for a mortgage with the most favourable terms, or if you need something more immediate, give me a call at (705) 333-4338 or get in touch with me here!

Customer Service Numbers:

CMHC: 1-800-668-2642
Genworth: 1-800-511-8888
Canada Guaranty: 1-866-414-9109

ATB: 1-800-332-8383
B2B: 1-800-263-8349
BMO: 1-877-895-3278
Bridgewater: 1-866-243-4301
CIBC: 1-800-465-2422
CMLS: 1-888-995-2657
Optimum: 1-866-441-3775
Equitable: 1-888-334-3313
Connect First: 403-736-4000
Chinook Financial: 403-934-3358
First Calgary Financial: 403-736-4000
First National: 1-888-488-0794
Haventree: 1-855-272-0051
Home Trust: 1-855-270-3630
HSBC: 1-888-310-4722
ICICI: 1-888-424-2422
Manulife: 1-877-765-2265
MCAP: 1-800-265-2624
Merix: 1-877-637-4911
Marathon: 1-855-503-6060
RBC: 1-866-809-5800
RFA: 1-877-416-7873
RMG: 1-866-809-5800
Scotiabank: 1-800-472-6842
Servus: 1-877-378-8728
Street Capital: 1-866-683-8090
TD: 1-866-222-3456