September 5th, 2005 by Questions

I’ve been discharged for a couple of years now. I have established credit for over 15 monthes with one loan, but my mortgage broker is forseeing problems with CMHC now that I have put an offer in on a house. I have a pre-approved mortgage but apparently the chances are slim that CMHC will approve it. Why is that?


One Response to “discharged”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

Every institution has their own internal credit approval process, CMHC is no different. While CMHC claims that they require a bear minimum of 2 years after a bankruptcy has occurred and history of making payments on other contracts, they also consider many factors such as current level and stability of income. As a result it is difficult to say the exact fact for this concern and you may want to ask your mortgage broker what can be done to avoid this in the future.

In general terms, the best thing you can do is 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. As well, starting to accumulate a down payment, the larger the down payment, the more likely you are to be approved for the mortgage.

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