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home ownership and renewing a mortgage

If we were to do a consumer proposal will it affect us when we go to renew our mortgage in five yrs and if we were to sell within the next 2 yrs would it affect our carrying our mortgage to a new home.

One Response to “home ownership and renewing a mortgage”

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Barton Goth GCO Bankruptcy Trustees said...

This is a good quesion to ask as your are correct a consumer proposal will have an impact on your credit (although most people I see who are considering a consumer propsal aready have poor credit so in many situaitons this isn’t a large consideration) and your credit is obvioiusly looked at when renewing a mortgage.

However, when lending money every company also looks at your current monthly cash-flow, the amount of income you have compared to your debt load, your payment history on the mortgage itself and the presence of any equity in the house. As a result of these factors, many of which look more positive after a consumer proposal, we find in practice it isn’t terribly difficult to qualify for a renewal, but you should discuss this with a local trustee to confirm that locally they find the same thing.