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Can I get a mortgage after a consumer proposal?

After a consumer proposal, it can feel like your whole financial world is in an uproar. You may be wondering whether it is going to be possible for you to get a mortgage and finally move into a place of your own. If you are coming out of consumer proposal and you are wondering how that is going to affect your ability to get a mortgage, here are a few things you should know. 

Can I get a mortgage after a consumer proposal?

  • If you already own a home and have at least 20% equity in it, you can refinance in order to pay off your consumer proposal so that you can get discharged earlier.
  • Your credit proposal will remain on your credit report for three years after you have been discharged. (When you reach the three year mark, we recommend contacting the credit bureaus and verifying that they have in fact removed the consumer proposal from your credit report)
  • Most lenders will not give you a new mortgage until at least two years after the discharge date of your consumer proposal. 
  • If you must get a mortgage before the two year mark is up, you should consult with a mortgage broker. Your mortgage broker will be able to direct you to reputable lenders who specialize in poor credit mortgages – and steer you away from swindlers. 

How can I improve my chances of getting a mortgage after a consumer proposal?

There are several things you can do after a consumer proposal that will help your chances of getting a better mortgage. 

You should start by working to repair your credit. To do this, apply for a secured credit card and then religiously make the payments in full and on time. Avoid applying for multiple credit cards or lines of credit all at once as doing so will only hurt your credit. This will help to show mortgage lenders that you are willing to do what it takes to fix your credit. 

The next thing you should do is start saving up money for a bigger down payment. The bigger the down payment you can save, the less of a risk lenders will see you to be and the more willing they will be to approve your mortgage application. 

Contact Matrix Mortgage Global today!

If you have been through a consumer proposal and you wish to get a mortgage, we can help. Contact Matrix Mortgage Global today for a consultation. 

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