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Refinance to Pay off Consumer Proposal then Getting a New mortgage

Hi. I`m about 6 months into a 4-year CP. I think I can sell my home and pay off the CP with the proceeds. However, I want to get another house. Question: Could I refinance my current mortgage to pay off CP. (I`ve seen websites that say they can do this). If so, after the CP is paid off, can I then carry my mortgage to a new home. I really want to move, but am afraid that I will not be even able to rent with landlords doing credit checks. (good buildlings).

Posted from: Ontario

One Response to “Refinance to Pay off Consumer Proposal then Getting a New mortgage”

A licensed trustee said...

I think you should be very careful how you proceed. It is unlikely you will be able to refinance your existing mortgage if you have already filed a consumer proposal – at least not at favourable interest rates. Be wary of any mortgage broker that tells you they can do this – every extra point of interest on $100,000 will cost you an extra $100 a month on your payment.

Why don’t you ask your current mortgage holder if your mortgage is “portable” – that means you can take it with you to a new house. If it is then perhaps you can still sell your curent house, pay off the proposal and use whatever funds are left as the downpayment on the new place.

Just be very very careful – any deal that sounds too good to be true probably isn’t…