FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Getting Another Mortgage

We are currently bankrupt. We repaid the excess value of the house and were able to keep it. However, we would like to downsize. Do you think we would be able to just transfer our mortgage or would the mortgage company not want to re-do our mortgage since we are bankrupt?

Also, how long does it generally take before you are able to get a mortgage again after going bankrupt? All the info I got when we went bankrupt was US information and I didn’t realize that Canada is rather unforgiving towards bankruptcy, even if it was business failure.

Thanks,

Amy

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One Response to “Getting Another Mortgage”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

In terms of being able to downsize, as long as you have kept current on your mortgage payments and have a good relationship with your mortgage company I don’t see why they would have a problem, but ultimately each mortgage company is going to have their own approach to this situation so I recommend you talk to your banker or mortgage broker to determine if they would be willing to do this.

In terms of how long it takes before being able to get a new mortgage, the rule of thumb is typically 2 years after a bankruptcy if you are able to demonstrate sufficient income, a history of making payments as they become due following your discharge from bankruptcy and have a sufficient down payment.

The best thing you can do to help to expedite this process is once you are discharged to begin to rebuild your credit, perhaps by getting a secured Visa card. You give Visa a $1,000 security deposit, and you get a Visa card with a $1,000 limit; this access to credit begins to re-establish your credit, and increase your chances of qualifying for additional credit, such as a mortgage.