home ownership after bankruptcy

October 16th, 2007 by Questions

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.


One Response to “home ownership after bankruptcy”

, A licensed trustee said:

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.

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