time frame to apply for a mortage

May 17th, 2009 by Questions

how long do you need to wait after a bankruptcy to get a mortage.

Posted from: Ontario


One Response to “time frame to apply for a mortage”

, A licensed trustee said:

Legally you are not required to wait at all – you may apply for a mortgage even while you remain bankrupt (as long as you tell the lender that you are bankrupt). Of course, the odds of getting approved are somewhat limited…

From a practical standpoint, most lenders will tell you to wait for a least 2 years after your discharge to apply for a mortgage. Further, you should expect to pay a premium (ie higher interest) on the first mortgage you are approved for so make sure you agree to the shortest term possible. The lender will suggest 5 years – you want to agree to 1. Once the mortgage is up for renewal you should qualify for a better rate…

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