Can I get a mortgage while in a consumer proposal?

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Getting a mortgage during a consumer proposal can be tricky. Big banks typically avoid lending during this period as they see it as a financial red flag. However, alternative lenders might offer options, albeit with less favorable terms. Most lenders prefer that the proposal is completed before approving mortgages. Reach out via phone, text, or live chat if you have any questions.

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Consumer Proposal Question

Can I get a mortgage while in a consumer proposal? Can I still qualify for a mortgage if I’m currently in a consumer proposal?

From: Anonymous Question
Location: Vancouver, British Columbia (BC)
Category: consumer proposal

Consumer Proposal Answer

Getting a mortgage during a consumer proposal can be a bit tricky but not impossible. Most big banks and prime lenders tend to shy away because they see a consumer proposal as a red flag regarding your finances. Still, there’s hope with alternative lenders who cater to folks with trickier financial backgrounds—just be prepared for some less-than-ideal terms. Many lenders would rather you finish off the consumer proposal first before rubber-stamping your mortgage. But if you’re almost there, some might give your application a glance. Banks and the more traditional players usually play the waiting game, preferring a sit-tight period of about two years after the proposal wraps up to offer better mortgage deals.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

Yes, you can still qualify for a mortgage while in a consumer proposal. However, it may be more challenging, as lenders typically consider several factors including your credit score, debt-to-income ratio, and the overall stability of your finances. Guidelines on this matter are primarily determined by individual lenders rather than specific regulations in the Bankruptcy and Insolvency Act or its associated regulations. It is advisable to consult with a mortgage professional or a financial advisor to explore potential options.

From: OSB Helper

Related Questions to Getting A Mortgage

Here are the top 5 most frequently asked questions related to getting a mortgage while in a consumer proposal, based on the provided sources and general online trends:

1. Can I get a mortgage while in a consumer proposal?

• Yes, but it may be more challenging and often requires waiting until the proposal is completed.

2. How long after a consumer proposal can I get a mortgage?

• Typically, lenders prefer a waiting period of at least two years after the consumer proposal is fully completed.

3. Will a consumer proposal affect my existing mortgage?

• No, a consumer proposal does not directly affect your existing mortgage as long as you continue to make payments.

4. Can I get a new mortgage before my consumer proposal is completed?

• It is possible but less likely; lenders may delay approval until your consumer proposal debts are fully settled.

5. What steps can I take to improve my chances of getting a mortgage after a consumer proposal?

• You should improve your credit score, secure a new line of credit and demonstrate responsible credit usage, and consider making a substantial down payment.

If you have a question about debt see our debt questions or ask your own debt related question.

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