One year after completing a consumer proposal, a mortgage is possible — but the lender tier, down payment and price you should expect depend on what you have rebuilt since discharge. Mainstream insured lending generally wants more distance and a spotless new record; alternative B lenders will look at a proposal graduate with re-established credit, stable income and a larger down payment, often twenty percent or more. Private lending exists below that, at costs that should only ever be a short bridge with an exit plan.

What ‘rebuilt’ actually means to a lender

Two re-established credit tradelines — typically a secured card and one other — used lightly and paid perfectly for at least a year, no new collections or late payments, and a written explanation of what caused the proposal and what changed. Lenders are underwriting the pattern since the event, not the event itself. If your rebuilt record is only a few months old, waiting and building can move you up an entire lender tier.

Deposits and documentation

Expect to prove the down payment’s full ninety-day history, that proposal payments are complete with the discharge certificate in hand, and stable employment. Buying below your maximum matters more for a rebuilt file than for any other: the payment you never strain to make is the credit record you are still building.

Photo via Wikimedia Commons

A note on rates

Posted rates are a starting point, not the final word. Rates are sometimes negotiable depending on the person and the situation, and we work with multiple lenders who offer different products and sometimes more competitive rates than any single posted table shows. Contact us and we will shop across lenders for your file — call Travis Bannert at (780) 720-8240. Any rate quoted for your file is based on an application and lender approval — it is confirmed only when a lender reviews your full application.

Start with a check, not a guess

Run your numbers through the Pre-Approval & Refinance Check — that page is the fastest way to sign up for a review of what you qualify for, what documents you need, and what your payment would look like on the homes you are actually watching in Edmonton and across Alberta.

Frequently asked questions

Can I get a mortgage while still paying a consumer proposal?
It is very difficult and rarely advisable. Most paths open after the proposal is completed and discharged and a period of clean, rebuilt credit has passed.

Thinking about this move in Edmonton or anywhere in Alberta? Call Travis Bannert at (780) 720-8240 — I will try to call you this week, or reply with a good time and we will set a phone appointment to walk through your file step by step.

By Travis Bannert, Mortgage Broker
Travis Bannert, Mortgage Broker | Next Door Mortgages, BFL Dominion Lending Centres | (780) 720-8240 | nextdoormortgages.com