HOW TO QUALIFY FOR A MORTGAGE AFTER A CONSUMER PROPOSAL

Completing a consumer proposal is a major financial milestone, and rebuilding afterward is absolutely possible. With the right plan, the right credit structure, and the right timing, you CAN qualify for a mortgage again in Ontario.

1️⃣ Understand the real timelines

A consumer proposal reports quickly and stays visible for years.

✔️ reports within 30 days

✔️ lasts 3–5 years

✔️ remains 3 years after discharge

Planning ahead is essential for rebuilding successfully.

2️⃣ Know when refinancing is possible

You can refinance during a proposal if your equity is strong enough.

✔️ requires 20%+ equity

✔️ proposal paid out at closing

✔️ improves credit reporting faster

This can help you recover faster than waiting for discharge.

3️⃣ Requirements for insured mortgages (5–20% down)

Insured lenders follow strict rules for anyone with past credit events.

✔️ must be discharged for 2 years

✔️ must rebuild credit properly

✔️ must show stability and consistency

Insurers want proof of strong repayment habits before approving.

4️⃣ Most lenders require the proposal to be fully paid

Active proposals are rarely approved for new mortgages.

✔️ proposal must be paid off

✔️ discharge must show on file

✔️ updated credit report required

Once cleared, far more lenders become available.

5️⃣ Some regions face stricter approval standards

Location affects a lender’s risk appetite.

✔️ rural towns can be harder

✔️ remote areas face limits

✔️ market stability matters

Lenders need properties that are easy to resell if needed.

6️⃣ Bundled mortgage strategies are available

Layered lending can work when traditional lenders decline.

✔️ 1st mortgage to 80% LTV

✔️ 2nd mortgage to 90% LTV

✔️ temporary higher costs

This is a bridge solution until credit improves.

7️⃣ Keep savings beyond your down payment

Being house rich and cash poor creates risk for lenders.

✔️ maintain emergency funds

✔️ demonstrate responsible budgeting

✔️ show financial cushioning

Savings increase borrower strength and stability.

8️⃣ Use secondary credit sources if needed

Some lenders accept alternative proof of repayment.

✔️ car insurance

✔️ cell phone bills

✔️ rental payments

Two years of clean history can help strengthen your application.

9️⃣ Make sure the proposal is removed on time

Even after payout, it must be manually removed after 3 years.

✔️ check Equifax

✔️ check TransUnion

✔️ dispute outdated info

Leaving it on your report hurts your score for no reason.

1️⃣0️⃣ Start rebuilding credit immediately

Rebuilding can begin as soon as the proposal is filed.

✔️ two credit cards

✔️ two years reporting

✔️ $2,500 limits each

The structure matters more than the type of card.

1️⃣1️⃣ Use starter credit products

These options rebuild credit consistently.

✔️ HomeTrust secured Visa

✔️ Affirm unsecured card

✔️ Scotia No-Fee card

✔️ TD secured card

✔️ Peoples Trust secured card

Choose products that report monthly without interruption.

1️⃣2️⃣ Understand the 5 C’s of credit

Lenders evaluate more than just your score.

✔️ Character — history & stability

✔️ Capacity — income vs debt

✔️ Capital — assets vs liabilities

✔️ Collateral — security offered

✔️ Conditions — market factors

Explaining your full story is part of a strong application.

💬 Final Thought

There IS a clear path to homeownership after a consumer proposal. With good planning, consistent rebuilding, and the right lender strategy, you can get approved and move forward confidently.

If you want a customized post-proposal mortgage plan, message The Frontline Mortgage Group today. We’ll guide you step-by-step.