Qualify For A Mortgage After Your Consumer Proposal

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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, call us at 1-844-962-9200 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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Chan Abdulla
My visit at David Sklar & Association was great. I met Samycha and she was amazing and treated me with compassion and was never judge by anyone there at the office. I will recommend anyone that is looking for a new start in life again to book an appointment at David Sklar & Associate's. All the staff there is very polite and treat you like you are special.
Sheena
Extremely professional, empathetic, honest and down to earth.I felt as those I had previously known Samycha for years. Her ability to relate, understand and assist with my situation was comforting. Very happy with their services.
Simone Foster
The company as a whole is fantastic. If you’re not ready or serious they won’t harass you with cold calls but when you are ready they will help you with a realistic plan. Everyone I’ve worked with is efficient and knows what they’re doing. Just like everyone in the comments I have to praise Cori who I would describe to people like the auntie who knows best lol thank you for everything.
Ricardo Villa
Jerry Janiec and Hernee Templonuevo have been very helpful from beginning to end. Hernee is knowledgeable of what it is that is required of you regarding pertinent documents that they need. Jerry provides a clean picture of your options and makes recommendation that is suited with your current situation. Thank you, both.
Trish Gee
David Sklar & Associates… they work for you. They do everything they can to help you get out of debt. They lower your debt, then help you rebuild your credit. They care about helping Canadians get out of debt.I’m in a fair amount of debt, and they almost cut my debt in half for me, and in just five years, I will be debt-free, because of them. I’ve been sick because of the amount of debt looming over my head. After my first meeting with Grace, I feel so much better. Grace set up a Consumer Proposal to help me get out of my debt, and I can see an end to my debt. My mental health has gotten so much better since that first meeting, and I owe it all to Grace, and everyone at David Sklar & Associates. Thank you, all!
ronald hall
Trina was the one who handled my case. She was understand, patient and professional.
Chris B
Very professional and thorough
Miroslav Dobrilovic
Prompt and very professional responce,By my counsellor Jerry JaniecMake me belive, I'll be out of woods!
Godly Cruz
Cori was very helpful and kind. She thoroughly explained the process and guided me patiently all throughout. David Sklar & Associates is truly commendable.
Andy Bailey
It was a good experience with this company. I appreciate the time they took to help with my experience. Thank you very much and look forward to further business with you.
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