Tips on Getting a Mortgage after consumer proposal
Home ownership is often a concern for anyone that is dealing with financial hardship. If you have just finished completing your consumer proposal, then working towards owning your own property may be on your to do list. There is a recommended path to attaining this.
Many people unfortunately end up in a situation where financially, they are unable to make ends meet with excessive debt. There are often hardships in life that we have to deal with. With regards to life after a consumer proposal, there is hope for you!
Repairing your Future with a Consumer Proposal
Taking the move to proceed with a consumer proposal is a good step in the right direction. This can be the beginning to repairing your financial future. During this path, it is a good time to help prepare for the future. Work on repairing your credit and helping to regain financial stability.
You may need to be discharged from your Consumer Proposal ( or your bankruptcy) for at least two years if you want to qualify for a “normal” mortgage from any of the major banks. Needless to say, your credit rating will need to be worked on and improved during the whole process with your consumer proposal and afterwards as well.
The majority of bank lenders will require a proposal be paid in full. You will want to have savings, and this is above your mortgage down payment. You will want to make sure that you have some money set aside in case of any financial emergency. Being properly financially prepared can help with avoiding possible hardships in the future.
Showing that you have been working on reestablishing your credit over the past few years can help to show your improved reliability with banks/lenders.
After 3 Years of Completion
One last thing is to make sure that once three years have passed since fully completing your consumer proposal, that it is fully removed from the credit bureaus in Canada. After 3 years, your consumer proposal should be removed from your credit history.