Qualify For A Mortgage After Your Consumer Proposal

Getting through a Consumer Proposal is no small achievement – insolvency is a humbling experience, but paying down your debts with a Consumer Proposal is a moment you should be proud of. You’ve probably been told that a bankruptcy or a Consumer Proposal gives you a second chance – in only a few years, it will even be off your credit rating. But if you want to take out a major loan after going through a Consumer Proposal, there’s still more to do, but there is a path to rebuilding your credit so that you can qualify for a bank loan, a better car loan, or a mortgage.

Homeownership is one of the biggest financial goals that can be jeopardized by insolvency. It’s a major financial commitment, and banks and mortgage brokers may not be willing to take on too much risk to offer you a mortgage.

A bad credit rating is a red flag for potential new creditors that says you’re a higher risk borrower, because you’ve run into insolvency in the past. The cost of taking on more risk, if you qualify at all, is a higher interest rate. In a city like Toronto where the average home price is still nearly $750,000, you simply can’t afford higher interest rates on your mortgage.

But your credit rating doesn’t have to stay that way forever; you can rebuild and with time, qualify for a mortgage at a better interest rate. Part of the Consumer Proposal process with David Sklar & Associates is going through credit counselling, where we teach you about using credit wisely to re-establish your credit rating and move on from these difficulties. These are some of the things you can do to rebuild your credit and qualify for a better mortgage:

Pay Your Consumer Proposal – The first step is finishing your Consumer Proposal, as it takes three years after completion for it to slide off your record – and that’s a big difference between bankruptcy and a Consumer Proposal to keep in mind. If you have any more questions about the difference between bankruptcy and a Consumer Proposal, feel free to ask us at David Sklar & Associates.

Get a Secured Credit CardSecured credit cards were made with rebuilding credit in mind; it’s backed by a savings account where you deposit money as a collateral. With a low limit, it gives you the chance to rebuild your credit at a low risk to the lender, rehabilitating your credit history.

Save a Down Payment – In Canada, down payment rules have changed. A five percent down payment is only the beginning; homebuyers must now provide a ten percent down payment on the cost over $500,000, which means most Toronto homes.

If you’re still not sure how you can rebuild your credit rating and get back on the path to saving for a mortgage, credit counselling at David Sklar & Associates can help. If you’re ready to start reaching for your financial goals again, contact us today to discover your path to successful savings. Your new home is waiting!

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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Ready to live debt free?

I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
Amanda Frappier
01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
Alex Taylor
22:03 17 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
Giani Kokolakis
18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
Wajay Awan
07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
Denise Simpson
15:17 09 Sep 21
My experience with Ashley Carter at David Sklar and Associates was very pleasant and professional. The process was made easy by Ashley with her help in answering my questions and concerns.
Alex Lamparter
13:07 03 Sep 21
Ashley she was extremely helpful,super friendly and understanding my situation. I am very please for the service I received and I will recommend this Company to anyone in need of consolidating. Thanks so so much.
Nicole Minister
17:43 02 Sep 21
I finally pulled the trigger and seek help from this team. I tried to pay my debt in the way it should be until the pandemic made it even worst and couldn't keep up with my payments anymore. Jackie is an amazing person, I told her the problem, she gave me the solution and gave me a variety of options and walked me through the process. That simple. Thank you so much.
rr 28
12:44 21 Aug 21
Dealing with Jackie made the process so much more comfortable. From my first phone call with her I never felt like I was being looked down on. Jackie made this as easy as being in this situation could be.
Vi Smith
18:09 13 Aug 21
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