Richards Mortgage Group Articles

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.

(Updated April 2019 - at this point in time, minimum down payment for a house remains 5% and maximum amortization is set at 25 years) Canada’s Minister of Finance [Dec 21, 2009] is concerned that homeowners are taking on too much debt and won’t be able to handle the higher payments that come with rising interest rates, or losses from falling home prices. His response may be to increase the size of the minimum down payment of 5% to a higher number (?10%?) and decrease the amortization period from 35 (?to 30?) years, which would serve to increase the monthly payment. Both would make it much harder for a first time buyer to enter the market and cool real estate prices that are overheating in some parts of the country. Industry observers are very concerned that this is a knee-jerk response to a problem actually caused by record-low interest rates, lowered in the first place to stimulate the economy.