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

"*" indicates required fields

Facebook

This field is for validation purposes and should be left unchanged.

Name*

Phone Number*

Email*

This field is hidden when viewing the form

What's the best time to contact you?*

Location*

What city do you live in?*

Total Unsecured Debt*

*Unsecured debt includes credit cards, lines of credit, bank overdrafts, payday loans, and unsecured personal loans (excluding student loans). It does not include mortgages and car loans.

This field is hidden when viewing the form

Source

How can we help you?

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.

Agreement*

I understand that Bankruptcy-Canada.ca does not provide debt relief services directly and agree to securely share this information with a local Licensed Insolvency Trustee (LIT) for a free, confidential consultation.

Select Trustee By Province

Buying a Home AFter Bankruptcy

I live in Ontario and I heard that the minimum required down payment of 25% after bankruptcy has been lowered to 20%. Is this correct?

Share this post:

X (Twitter) Facebook Pinterest LinkedIn Email

One Response to “Buying a Home AFter Bankruptcy”

A licensed trustee said...

I think you may be confusing a number of different things…

First, there are no bankruptcy specific rules regarding mortgages after you’ve been discharged.

The 25% down-payment you may have heard about is in order to qualify for a conventional mortgage. That means a mortgage that does not require insurance from CHMC. I haven’t heard that the downpayment has been reduced to 20%, but that is possible – check with your lender.

I can tell you that it is very difficult to obtain a mortgage in the first few years after you have been discharged and it is quite likely you will be required to pay a higher rate of interest when you are approved.

We tell people to carefully shop around – you probably only want a 1 or 2 year term on the first mortgage you are approved for. Once that time has elapsed you should qualify for normal interest rates.