Updated: May 2020

In Canada, getting a mortgage after a multiple bankruptcy can be very difficult, especially when a property was included. The first bankruptcy will disappear from your credit report 6 years after discharge (7 years in ON, QC, NB, NL, PEI). However, if you declare bankruptcy more than once, then each bankruptcy will appear on your credit report for 14 years post-discharge. In most cases multiple bankruptcy is easily apparent to mortgage lenders.

As a mortgage broker, I have no “A” lenders who would provide a mortgage to any multiple-bankrupt.  While a “sub-prime” or “private” lender might look at your file, they would require a down payment in the order of 25-35% of the property value. Interest rates would certainly be higher than regular bank rates.

A single bankruptcy is much easier to deal with and typically requires the borrower to re-establish their credit for at least one year within the 2 years after discharge, a much more realistic time frame and much higher success probability.

If you have been bankrupt, please be very cautious about entering into a rent-to-own or seller financing deal as there may be no lender for you when the seller wants out. 

You can find excellent credit rebuilding strategies here.