How does a Consumer Proposal affect getting a mortgage?

With respect to a Consumer Proposal or OPD (Orderly Payment of Debts), unless you have a down payment of at least 20%, you will need to discharge the consumer proposal and then reestablish your credit for at least one year (more likely two) before a traditional mortgage lender will consider you on an application, and you will need at least 10% down. 

If you have 20% down or more there are alternative lenders that will consider you one day post discharge for a purchase. If you own your own home already and have equity in excess of 20%, there are also lenders that will refinance you, with a portion of the refinance proceeds going directly to pay out the proposal (works for CRA tax arrears, too). Finally, if you have very strong income but not quite enough cash for 20% down and to payout proposal, there may be a private unsecured loan option that can be used to payout the proposal in conjunction with a purchase.

Contact us for more info.

Follow the advice for rebuilding your credit.

Topics: Bankruptcy or Consumer Proposal