home ownership after bankruptcy
My husband and I went bankrupt. We drive an old car and rent an apartment. Eventually we would like to own a home. Our bankruptcy was recently discharged and our income has increased – with our debts gone, this leaves us some money, finally, to save.
How long after a bankruptcy is discharged will we be able to realistically get a mortgage? Our trustee told us that the Canadian Mortgage and Housing Association will allow a mortgage 3 years after bankruptcy but talking to others who have gone bankrupt, I haven`t found anyone who was able to get a mortgage that soon.
The mortgage brokers that we deal with tell us that people can start applying for mortgages 24 months after thier discharge. The normal experience is that they are granted a 1 or 2 year term at higher than advertised rates (say an extra 2 – 3%), if there ar no payment problems during the term then when they renew they will qualify for regular rates.
Of course you still require a downpayment and must be approved based on your income and employment history.
I usually advise people to call a couple of mortgage brokers and or meet with a loans officer at a bank – they can help you develop a savings plan that will lead to a mortgage.