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buying a home in Canada after bankruptcy

I was released from bankruptcy in 2001. Since then I have obtained a secured credit card and maintain monthly payments on time. I also have established an RRSP/GIC for $6800. In an attempt to restablish my credit, I took out a small loan with a co signer and have repaid it.

I have been with my current employer for 6 years. I have paid off my 2000 auto loan.

I want to get my masters and buy a home.

I have approached the banks and they are not interested in lending me money. Is it because I am a female? I am the primary bread winner in my family and I would like to get a better pay scale hence the masters. Also, I am paying more on rent that need be and would like to purchase a mini home with land.

It has been suggested that I get my masters first; however, that is a $15,000 investment. Should I put my RRSP towards my masters and then with a higher salary comtemplate a house.

I am 40.

One Response to “buying a home in Canada after bankruptcy”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

From the sounds of it you have begun to take a number of good steps toward rebuilding credit, but probably haven’t done enough to fully rebuild. Continue obtaining small forms of credit and repaying as required. A good way to do this is instead of simply establishing an RRSP, use a Registered Retirement Savings Loan to do so. The advantage of this is that it is not only an asset, but establishes a comment with the credit bureau at the same time. Any credit contract you can enter into and complete will help.

As to what is necessary to obtain a mortgage in the quickest fashion, this is a difficult question to answer as every lender has it’s own internal controls as to when they will be willing to fund a mortgage. First you should ask each institution you have dealt with what would be necessary to approve this type of an agreement. It may be that if you utilize the RRSP Home Buyers Program to enhance the amount of your down payment.
Regardless of what they say, before making the investment of a Masters (as it doesn’t always guarantee ha more competitive salary) contact a mortgage broker and find out a) if you could qualify, and b) what would need to be done to qualify. Then you will be in a much better position to make the decision whether it is salary that will make the difference of if other efforts are necessary. Often a mortgage broker has access to a large number of institutions, as well as 3rd party lenders who may be more willing to consider lending in this type of situation.