Bad things can happen to good people. If opting for a consumer proposal or claiming bankruptcy is something you’re considering, you’ll want to ensure you understand all the risks this could have on your ability to get a mortgage (or keep one for that matter). You’ll want to ensure there is no other option in terms of refinancing your existing mortgage, working with your lender, looking at a different loan structure from a lender or borrowing from family before opting for a consumer proposal or claiming bankruptcy. As credit tightens up with Canadian lenders, you may not be prepared for how long the affects can last even after you have paid off your debts.
Here are three essential considerations if you intend to get a mortgage or have one and are considering either a proposal or bankruptcy:
1. Most lenders will want to see that it has been paid in full for six years before lending at the best rates for a purchase or refinance/renewal.
2. Your lender may not renew your mortgage even though you have never defaulted on your mortgage payments.
3. Even though a consumer proposal and bankruptcy are different by definition, lenders still view them the same when it comes to what they will offer borrowers.
If some borrowers really knew how a proposal or bankruptcy would have affected them in the first place, they may not have gone this route. The Angela Calla Mortgage Team is experienced in understanding the affects of all components within your financial health, and will help guide you through life changes with our proactive planning approach.
Angela Calla, AMP
Dominion Lending Centres-Angela Calla
Host of ” The Mortgage Show” Saturdays @ 7pm on CKNW AM980 Phone :
604-802-3983 Fax: 604-939-8795
Email: acalla@dominionlending.ca