Can I get a Mortgage after a Consumer Proposal?
You’ve had to enter into a consumer proposal, but now you may be asking yourself, how does this impact my home financing options?
Whether you are trying to buy a home, or refinance an existing mortgage, you need to know how the consumer proposal will impact your application.
When Can You Buy A Home?
As always, whether or not you qualify for a mortgage, will depend on the usual qualification criteria we all face. However, having a consumer proposal on your record adds some conditions.
The primary factors to how quickly you can buy, are: How much down payment you have, and your credit bureau.
- 20% Down payment
- You can purchase a home immediately after completing your consumer proposal.
- You will more than likely be required to use a B-lender, or a private lender.
- If you have been working on rebuilding your credit bureau you can use a B-lender, if not, you will have to go with a private lender.
- Less than 20% down payment
- You need a minimum two years of clean, new credit post completing the consumer proposal. [You’re best to have at least two trade lines (credit card, loan, line of credit, etc.) with limits greater than $2,000 each].
Worst case scenario, you will need to wait three years post consumer proposal completion, or six years after you filed your proposal (whichever comes first).
If you have any questions, or need help with your home financing options, please feel free to contact me any time.