Post Bankruptcy or Consumer Proposal (CP)   

Bad things happen to good people all the time, and bankruptcy or consumer proposal is no longer viewed the same negative way by lending institutions as it once was. If at some point you had no choice but to claim bankruptcy or opted for a consumer proposal, that doesn’t mean you won’t be able to get a mortgage to buy a home.

The date of the bankruptcy was discharged, or the CP was satisfied is the date that is considered Ground Zero if you will. What you do after this date is what matters most.

The key to getting a mortgage after this is to have re-established credit. Banks view bankruptcy and a CP the same way, in that new credit must be established after the bankruptcy is discharged or the consumer proposal has been satisfied.

What banks want to see is the Rule of Two. That means 2 credit accounts that were established after the date of discharge or CP pay out, active for a minimum of two years and with a minimum limit of $2,000. There can be no late payments or collections post-bankruptcy or after a consumer proposal was entered into.

Once you have satisfied the minimum re-established credit requirements you will be viewed as having a clean slate. You can purchase a home with as little as 5% down just like anyone else, and you will have access to any government incentive programs to help you buy, if it’s your first home.

Post Bankruptcy or Consumer Proposal? Want to know where you stand? Reach out for a free qualification and personalized game plan. Let’s make this the year you buy your dream home!

Kristin Woolard