How to Stop CRA Garnishment After Receiving an RTP Demand Payment Letter

Ever felt the stress of unexpected financial setbacks? How to stop CRA garnishment is a question many Canadians face when dealing with debt issues and a RTP (Requirement To Pay) from the Government of Canada. Understanding the steps to halt this process can alleviate a significant amount of stress and help you regain control over […]

How Many Times Can You Do A Consumer Proposal

Ever felt like you’re stuck in a financial maze with no exit in sight? Debt can weigh you down, making every day feel like an uphill battle. But what if there’s a way to reset and start fresh? How many times can you do a consumer proposal? The straightforward answer is that you can file […]

Who Can Put a Lien on Your House in Canada?

Liens can significantly impact property ownership in Canada, often catching homeowners off guard. Understanding liens—what they are, the types that exist, and who can place them on your property—is crucial for any homeowner. This article unpacks the complexities of liens, explores potential lien holders, and discusses the consequences they can have on property sales. It […]

FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

"*" indicates required fields

Name*

Phone Number*

Email*

This field is hidden when viewing the form

What's the best time to contact you?*

Location*

What city do you live in?*

This field is hidden when viewing the form

Source

How can we help you?

Agreement*

I understand that Bankruptcy-Canada.ca does not provide debt relief services directly and agree to securely share this information with a local Licensed Insolvency Trustee (LIT) for a free, confidential consultation.

Phone

This field is for validation purposes and should be left unchanged.

Select Trustee By Province

Apply for a mortgage after consumer proposal?

A person was in consumer proposal in 2012. He has completed the consumer proposals in Nov 2013. The person is now having credit cards. Is the person can apply for residential mortgage to buy a new home?

Posted from: Ontario

Share this post:

X (Twitter) Facebook LinkedIn Email

One Response to “Apply for a mortgage after consumer proposal?”

Doug Stuive, CA | Trustee | CIRP said...

The are three factors that the bank looks at when deciding if a mortgage will be granted to a consumer. The first item is the income of the household, which may also include the length of time you have been employed. The second item is your debt to income ratio. Provided you have not built up a balance on your credit cards after completing your proposal your debt ratio should be low, which can work in your favour. The last item they look at is your credit score. One year after filing a consumer proposal your credit score may still be too low for the banks to approve you for a mortgage, even if you meet the other two criteria.

Before making an application for pre-approval on a mortgage to the bank, I would recommend that you complete a credit check on yourself. Make sure that all of the creditors that were included in your consumer proposal are not showing as active, collectable debt. Also make sure the date you completed your consumer proposal is reported accurately in the credit bureaux. Correcting any errors before you make an application for a mortgage is a good first step.

If your credit report is in order then you should make an appointment with a representative from your bank to discuss whether you would be a good candidate for a mortgage. It may be that you would not qualify right now, but the representative should be able to provide you with some steps to take that will help you to get pre-approved in the future.