Previous Bankruptcy
What is a bankruptcy?
Declaring bankruptcy is never, ever easy. It signifies financial failure of the highest order. But the thing about bankruptcy is that it doesn’t mean you’re a bad person or that you can’t rebound.
Bankruptcy is there for those who have gotten into a serious financial pickle and have no other way out. This often happens when debt mounts for one reason or another and paying back creditors is no longer a feasible option.
And while declaring bankruptcy is not something that should be considered lightly, it isn’t the worst thing in the world. Declaring bankruptcy can allow someone in serious financial peril to get out from underneath it and begin again.
Can I Qualify for a Mortgage After Declaring Bankruptcy?
Bankruptcy is one of the most difficult things that anyone can go through. And it can make it seem as though applying for a mortgage after declaring bankruptcy is an impossible dream that will never come true.
The short answer, however, is that you can still qualify for a mortgage after declaring bankruptcy.
How can I Qualify for a Mortgage after Declaring Bankruptcy?
Many Canadians believe that after declaring bankruptcy, obtaining a mortgage is an impossible feat. But, this is far from the truth. There are a number of mortgage financing options available to those who have declared bankruptcy in the past.
The distinguishing criterion which determines which lender you can work with is your credit or beacon score. So after bankruptcy, building up your score should be a priority. If you work diligently to improve your score, your chances of being approved by a prime lender as soon as two years after being discharged are quite high.
After bankruptcy, you should get a credit card to start reporting and rebuilding your credit. Take the initiative of rebuilding your credit history and the opportunity of a clean slate. Ensure that you stay on top of monthly payments and pay your credit card bill on time and if possible, in full. By doing this, you’ll rebuild your credit for lenders to take into consideration when you eventually apply for a mortgage.
Can I Buy A Home While In A Consumer Proposal or Bankruptcy?
A bankruptcy or consumer proposal ranks as one of the number one reasons clients are declined by their bank for mortgage financing. With tough economic times come tough decisions. Although we are taught that bankruptcy and consumer proposals are bad things, sometimes they are a necessity.
If you plan on buying a home there are some things you need to know about consumer proposals and bankruptcy. To get mortgage approval from a bank you must be discharged for a minimum of two years. You must also have re-established credit. Most big banks look for two established tradelines on your credit report.
In a nutshell, you would need to fulfill these requirements:
- Your bankruptcy has been discharged for at least two (2) years
- You have established credit for two (2) years of that duration
- If you are employed, having the ability to put a five percent down payment on the property on which you wish to buy.
For the most part, there are few exceptions to the rules about buying a home while in a consumer proposal or bankruptcy. However, working with an experienced 911 Mortgage broker will drastically improve your chances of getting approved. While you may not get approval from a major bank, there are alternative lenders who approve these types of purchases.
How Soon After A Bankruptcy Can I Get A Mortgage?
Most prime mortgage lenders will be able to provide you with a mortgage if you are two years clear of bankruptcy. That is, two years from the time you were discharged, not from the time you declared bankruptcy.
So, 24 months later, you could potentially build up your credit score to be in a position where some prime lenders will consider your file. If your credit still isn’t up to par, our 911 Mortgage Brokers have alternative financing options for you. Because we work with a large pool of lenders, both on the traditional and alternative sides, we can explore all the options available and match you with the right lender.
How we can help home buyers
If you are looking to purchase a home post-bankruptcy, start by contacting us here at 911 Mortgage Brokers – The Mortgage Centre. 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. Our mortgage brokers will analyze your financial situation after declaring bankruptcy. Depending on your financial situation, your 911 mortgage broker or agent will help provide the documents required for your mortgage.
We will explore all the options with you and guide you step-by-step, from the pre-approval stage to funding your mortgage 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 bankruptcy.
Just because you had a drawback in a previous stage of your life, it doesn’t mean you can’t go back to re-establishing your life and reaching your goals. If you are looking to purchase another property, helping your children with their education, going on a long awaited vacation, by tapping into your home’s equity we can help you make those dreams become a reality.
Why Work with 911 Mortgage Brokers
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.
So, 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.
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.
