Previous Consumer Proposal
What is a Consumer Proposal?
If you’ve ever found yourself in the position of needing debt relief services, then the term ‘consumer proposal’ has probably crossed your path. “What is a consumer proposal?,” you may ask.
Consumer proposals are a means of avoiding bankruptcy through negotiating a legally binding agreement with your creditors. Instead of declaring bankruptcy, you can propose paying a portion of each of your debts back. The people who hold your debt have to agree to it, of course.
For example, let’s say that you owe $50,000 distributed over credit cards, lines of credit, car loans and other debt. You are currently employed and you can afford to make some of the payments but not repay the full amount.
You can connect with a consumer proposal administrator who will help you file your proposal. You propose paying a monthly sum of, say, $400 for the next 4 years which will amount to $19,200. Each of your creditors will vote on the proposal and if they all accept, at the end of the agreement and your payments, you eliminate all your outstanding debt.
For your creditors to accept the proposal, you will have to offer to pay more than they would have received if you declared bankruptcy. Your administrator can help you estimate that amount.
If the creditors accept your proposal, then your credit will clear from the time they clear the consumer proposal (which is once you pay them back).
How we can help home buyers
Many people who have gone through the difficult process of declaring a consumer proposal contact our 911 Mortgage Brokers with questions such as: “How long am I supposed to wait before I apply for a mortgage?” or “Can I even get a mortgage after a consumer proposal?”
The answer really depends on the lender. Often, the largest banks and the CMHC (Canada Mortgage and Housing Corporation) would like to see two years lapse from the date of completion of your proposal before providing the best rates and terms. On the other hand, if you have, at least 20% of the purchase price available for a down payment and proof of gainful employment, you may be able to go house shopping as soon as you’ve completed the consumer proposal! With any lender, it is helpful to show you have been working hard on rebuilding your credit history.
If you are looking to purchase a home, the first step is to get you pre-approved to establish what you can truly afford and the best possible rates available for your purchase. We will explore all the options with you and guide you step-by-step, from pre-approval to funding on the day of your closing.
How we can help existing home owners
If you are already an existing homeowner, you have a secret weapon which is right under your roof and which is your home’s equity. As a matter of fact, an experienced mortgage broker can help you access your home equity immediately.
Our 911 Mortgage Brokers can match you with one of our lenders who are willing to over-look past credit issues, such as a consumer proposal. We can even help you use your home equity loan to pay out your consumer proposal early. Consumer proposal loans can save you money and speed up repairing your credit rating. By tapping into your equity, your consumer proposal can be paid off immediately, so you can start enjoying your freedom again.
How 911 Mortgage Brokers can help
We understand that difficult situations arise in life which may wreak havoc in a person’s financial situation resulting in a consumer proposal or a bankruptcy. This is where an experienced mortgage broker comes in and can make all the difference. Our 911 Mortgage Brokers have the expertise and know-how to deal with these situations, swiftly and efficiently, to provide the right mortgage solution. We are known for providing out-of-the-box creative solutions.
Here at 911 Mortgage Brokers we specialize in assisting clients with less than perfect credit, including clients who are still enrolled in consumer proposals and bankruptcies. Our lenders understand the importance of common-sense approvals. With this in mind, they place little to no emphasis on income or even past credit issues. To clarify, they approve mortgages and home equity loans almost exclusively on the amount of equity you have in your home.
Whether it is a mortgage for home purchase, a mortgage renewal, a refinance, a home equity loan, a home equity line of credit, a second mortgage or a private mortgage, we have the tools and knowledge to secure the right financing solution for you.
Because we work with a large pool of lenders nationwide including traditional Banks, Credit Unions, Alternative Mortgage Lenders, Mortgage Investment Corporations, and Private Lenders, we can explore a wide array of mortgage solutions for you.
Contact Us for a Free Confidential Mortgage Consultation
When looking for a home or looking to refinance after declaring a consumer proposal or a bankruptcy, start by contacting us here at 911 Mortgage Brokers – The Mortgage Centre. Our mortgage brokers will analyze your financial situation after declaring the consumer proposal or bankruptcy. Depending on your financial situation and the details of your consumer proposal or bankruptcy, your 911 mortgage broker or agent will help provide the documents required for your mortgage.
Call Us Today at 289-318-0911 or Toll Free at 1-888-377-0911 for a free confidential consultation to discuss your options.
Our Service Areas
911 Mortgage Brokers – The Mortgage Centre offers services to clients across Toronto and the GTA, Vaughan, King, Aurora, Stouffville, Newmarket, Markham, Richmond Hill, Barrie, Innisfil, Orillia, Collingwood, Oshawa, Ajax, Whitby, Mississauga, Brampton, Caledon, Burlington, Oakville, Milton, Bolton, Hamilton, St. Catherines, Niagara Falls, Windsor, Kitchener, Waterloo, London, as well as far as Muskoka cottage country, Ottawa, Simcoe, and the rest of Ontario.
