Consumer proposal
“I’m in a consumer proposal. Am I stuck until it’s done?”
Not always. If you own a home, your equity may pay the proposal off early. If you’re buying, some lenders will work with you before it’s finished.
How we can helpCredit-Challenged BorrowersToronto & GTA
Bruised credit?You can still have a plan.
Whether you’re in a consumer proposal, rebuilding after bankruptcy or have settled debts, we’ll show you which lenders can help today — and how to get back to better rates.
Is This for Me?
Sound familiar?
Bankruptcy
“I went bankrupt. Will anyone lend to me?”
Yes, once you’re discharged, and it gets easier with every month of rebuilt credit. We’ll map out when each type of lender opens up to you.
How we can help
Debt settlement
“I settled my debts for less. Now my report looks bad.”
A settled account isn’t the end of the road. Lenders want to see it’s resolved and that your credit has been clean since.
How we can helpWe also help with:CollectionsLate paymentsJudgmentsTax arrearsMortgage arrearsLow credit score
Consumer Proposal
During or after a consumer proposal.
A consumer proposal lets you repay part of your unsecured debt through a Licensed Insolvency Trustee. It affects your credit, but it doesn’t have to stop you from owning — or keeping — a home.
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While you’re still paying
If you own a home with equity, a refinance may pay off the rest of your proposal in one lump sum. Many lenders like to see about a year of on-time payments first. If you’re buying, some alternative lenders may consider you with a larger down payment.
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Right after it’s completed
Keep your Certificate of Full Performance. Alternative lenders can often help now, especially with 20% down or more, while you rebuild credit.
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About 2 years after completion
With re-established credit, traditional lenders and insured (CMHC) mortgages generally become possible, with better rates.
Paying a proposal off early also starts the clock sooner: it generally comes off your credit report 3 years after completion, or 6 years after filing, whichever comes first.
See if I qualifyBankruptcy
After a bankruptcy.
Bankruptcy is a fresh start, and the mortgage options grow the further you get from your discharge date. The key is knowing which lenders are open to you today.
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Before discharge
Options are very limited while you’re an undischarged bankrupt. Talk with your trustee first. We can still help you plan so you’re ready the day you’re discharged.
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Soon after discharge
Some alternative lenders may consider you with a larger down payment (often 20% or more) and some newly re-established credit.
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About 2 years after discharge
With two or more active credit accounts paid on time, traditional lenders and insured (CMHC) mortgages generally open up.
A first bankruptcy generally stays on your report 6 years after discharge at Equifax and 7 years at TransUnion in Ontario, but you don’t have to wait that long for a mortgage.
See if I qualifyDebt Settlement
After settling debts or collections.
If you negotiated debts down, or have accounts in collection, your report will show it for a few years. Lenders care most that it’s resolved and that it isn’t still happening.
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Open collections or judgments
Many lenders need these paid before or at closing. If you own a home, a refinance can sometimes clear them as part of the mortgage.
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Settled, with paperwork
Keep the settlement letter for every account. It shows the debt is closed and helps a lender look past it.
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Clean credit since
Twelve to twenty-four months of on-time payments on new or remaining accounts makes a big difference to which lenders will say yes, and at what rate.
Check your own reports at Equifax and TransUnion (both free) to make sure settled accounts show the right status. Errors are common and can be corrected.
See if I qualifyRebuilding Credit
What lenders look for when you’re ready.
The fastest way back to better rates is rebuilt credit. A secured credit card is an easy start. Use it a little, pay it in full, and let the months add up.
Not ready yet? Book a call anyway. We’ll give you a simple plan and a date to aim for. We serve borrowers across the GTA, so you can work with a local Scarborough mortgage broker, Toronto mortgage broker, Markham mortgage broker, York Region mortgage broker, Durham Region mortgage broker or Peel Region mortgage broker.
- Two or more active credit accounts
- Limits of about $2,000–$3,000 or more
- On-time payments since your proposal, bankruptcy or settlement
- Balances kept under about 30% of the limit
- Discharge, completion or settlement paperwork
- Stable, documented income
- Down payment or home equity
- A clear explanation of what happened
Your Credit Report
How long it stays on your report.
You don’t have to wait for these to disappear to get a mortgage — but knowing the dates helps you plan.
EquifaxTransUnion
Consumer proposalEquifax: 3 years after completion, or 6 years after filing, whichever comes firstTransUnion: About 3 years after completion, or 6 years, whichever comes first
First bankruptcyEquifax: 6 years after dischargeTransUnion: 7 years after discharge (Ontario)
Repeat bankruptcyEquifax: 14 years after dischargeTransUnion: 14 years after discharge (Ontario)
General guidance based on the credit bureaus’ published reporting periods for Ontario; rules can change and other provinces differ. Settled accounts and collections also remain for several years. Check your own reports — both bureaus offer them free.
How We Help
A stepping stone, with a way back.
1
Tell us what happened
No judgment. We just need the dates and the details: filing, completion or discharge, and any settled accounts.
2
Review your credit together
We look at what lenders will see, and spot errors or quick fixes.
3
Find the right lender for today
Traditional, alternative or private — we match you to who will actually say yes now.
4
Show you the full cost
Rate, fees and term, side by side, before you commit to anything.
5
Close and keep rebuilding
We coordinate the paperwork through to funding, and give you a simple credit plan.
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Move to a better rate
As your credit recovers, we help you switch to a lower-cost mortgage at renewal or sooner.
Good to know: alternative and private lenders usually cost more than a bank. That’s why every plan we make includes how and when you’ll move to a lower rate. Need short-term financing now? See our private mortgage page.
Common Questions
Questions about mortgages and bruised credit.
Answers are general. Your options depend on your dates, your credit since, your income and the lender. We’re a mortgage brokerage, not a Licensed Insolvency Trustee — for advice on filing a proposal or bankruptcy, speak with a trustee.
It can be possible. Traditional banks usually won’t lend during an active proposal, but some alternative and private lenders will, typically with a larger down payment (often 20% or more) or meaningful equity in your home. Rates and fees are higher, so we plan how you’ll move to a better rate later.
Often, yes, if you own a home with enough equity. A refinance can pay the remaining proposal balance in one lump sum. Many lenders like to see about a year of on-time proposal payments first. Finishing early also starts the credit-report clock sooner, because a proposal is generally removed a few years after it is completed.
Before you are discharged, options are very limited. After discharge, some alternative lenders may consider you right away with a larger down payment. Traditional lenders and insured (CMHC) mortgages generally look for about two years after discharge plus re-established credit.
A consumer proposal is generally removed 3 years after you complete it, or 6 years after filing, whichever comes first. A first bankruptcy stays about 6 years after discharge at Equifax and 7 years at TransUnion in Ontario. Repeat bankruptcies stay much longer. You can still get a mortgage before these items fall off.
A settled account shows on your credit report for several years and tells lenders the debt wasn’t paid in full. It doesn’t rule you out. Lenders mainly want to see that it’s resolved, that you have a settlement letter, and that your credit since then has been clean.
Many lenders require collections and judgments to be paid before or at closing. If you own a home, a refinance can sometimes pay them out as part of the mortgage. We’ll tell you which ones a lender will need cleared.
Usually at least two active credit accounts (such as a secured card and a card or line of credit) with limits of around $2,000–$3,000 or more, a year or two of on-time payments, and balances kept low — ideally under about 30% of the limit. Stable income and your discharge or completion certificate matter too.
Usually, yes. Alternative and private lenders charge higher rates, and there may be lender, broker and legal fees. We show you the full cost upfront and plan a path to a lower-rate mortgage as your credit improves.
No. A first conversation doesn’t involve a credit check. When we do pull credit for an application, we’ll tell you first.
Ready?
Let’s make
your plan.
Tell us where you are — in a proposal, after a bankruptcy or after settling debts. We’ll show you what’s possible now, and what gets better from here.
No judgment. No credit check to talk.
Serving Toronto, the GTA & all of Ontario. Alternative and private mortgages generally involve higher rates and fees than conventional financing. Booking a call does not constitute mortgage approval. All financing is subject to lender criteria. Mortgage Made Better Inc., FSRA Licence #13747.