Mortgages After Bankruptcy and Consumer Proposals

Mortgages After Bankruptcy or Consumer Proposal

Good news — even after a bankruptcy or consumer proposal, homeownership is still possible. It just comes down to timing, rebuilding, and meeting a few key requirements.

After a Bankruptcy
What lenders typically want:
Discharged for at least 2 years (for most A lenders)
Re-established credit:
Minimum 2 active trade lines (credit cards, loans)
At least 2 years history
Minimum credit score: ideally 680+
Down payment: Minimum 5% (A lenders)
Can be higher with alternative lenders

If you’re under 2 years discharged:
Still options available through alternative or private lenders
Higher rates and/or larger down payment may be required

After a Consumer Proposal

What lenders typically want:
Fully paid out and completed
2 years since completion (for A lenders)
Same credit rebuild expectations:
2 trade lines
2 years history
Credit score ideally 680+

If still active or recently completed:
Alternative lender options available
May require 20%–30% down depending on the situation

Rebuilding Credit (Most Important Step)

To get back into strong approval territory:

Get 2 credit products (credit cards or small loans)
Keep balances low (under 30%)
Never miss payments
Avoid applying for too much credit at once

Down Payment Options

Savings
Gifted from immediate family
Some programs allow flex down payment (case-by-case)

 

Key Insight

It’s not about the bankruptcy or proposal itself… It’s about what you’ve done after it

Lenders want to see that:

You’ve rebuilt responsibly
You can manage credit again
You’re stable moving forward

Bottom Line

You can absolutely get a mortgage after a bankruptcy or consumer proposal — with the right timing and strategy.