Consumer Proposal CMHC & Mortgage Down Payment

My goal is to purchase my first home in about 5 years; 2 years to pay off proposal, 3 years until my bad credit gets purged while saving for a down payment.

By filing CP, it becomes matter of public record forever. Do lenders/banks look at this before they approve you? Is it a big factor whether to approve or not?

Is 5% down payment enough to get approved for a mortgage after credit has been purged? Or do lenders want bigger down payment (i.e. 20%) from someone who has filed for CP.

Thank you

Posted from: Ontario

One Response to “Consumer Proposal CMHC & Mortgage Down Payment”

Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said...

CMHC Insured mortgages require 5% down payment. The proposal will be deleted from the credit report 3 years after completion. Other factors are taken into consideration besides credit history. For example, steady employment, personal financial management, and the nature (amount) of the loan. If all other factors are satisfactory obtaining a CMHC approved loan is quite possible.