Consumer Proposal & Bankruptcy Mortgages in Ontario
Home Equity Loans During or After a Consumer Proposal or Bankruptcy
A home equity loan, consumer proposal in place or not, is still possible as long as you own a home with equity. If the bank turned you down because of a consumer proposal or bankruptcy, we approve based on your equity, not your credit score, and we can even help consolidate debt or pay your proposal out early. Learn more about home equity loans and second mortgages.
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Approvals in as fast as 24 hours · No income or credit requirements · Financing from $25,000
Yes, you can get a home equity loan during or after a consumer proposal or bankruptcy if you own a home with equity. Equity-based lenders approve based on your property's value rather than your credit score, which is why financing is often available even while a proposal or bankruptcy is still active, and the funds can be used to pay it out early.
37,121
Canadians filed a consumer insolvency in Q1 2026. You are far from alone.
24 hrs
Typical approval window through Turnedaway.ca versus weeks at a traditional bank
80%
Maximum loan-to-value we arrange, leaving equity protected as a buffer
0
Waiting period to borrow against your equity if you already own a home
Source: Office of the Superintendent of Bankruptcy and CAIRP, Q1 2026.
Why Homeowners in a Proposal or Bankruptcy Turn to Their Equity
A consumer proposal or bankruptcy can make it feel like every lender has closed the door. Traditional banks lean heavily on your credit score, so a recent insolvency usually means an automatic decline, even when you have built up real equity in your home.
Equity-based lending works differently. What matters most is the value in your home, not the marks on your credit report. That gives homeowners a path the banks simply do not offer, and many use it to pay out a proposal early and finish ahead of schedule. In fact, a home equity loan consumer proposal payout is one of the most common reasons homeowners come to us. For an independent overview of insolvency options, the Office of the Superintendent of Bankruptcy is a helpful resource.
At Turnedaway.ca, we work with a wide network of alternative and private lenders, which is what allows us to arrange financing for homeowners who are still in, or recently out of, a proposal or bankruptcy.
How a Home Equity Loan, Consumer Proposal Payout Works
Getting approved through Turnedaway.ca is straightforward, even with an active proposal or bankruptcy. Here is what the process looks like from your first application through to funding.
Tell Us About Your Situation
Apply securely at apply.turnedaway.ca. Whether you are in a proposal, in a bankruptcy, recently discharged, or just considering filing, we start with where you are today.
We Assess Your Equity
We review your home's value and existing mortgage to see how much room there is, staying within our 80% loan-to-value cap. Your credit score is not the deciding factor. Estimate your room with our home equity calculator.
We Match You to a Lender
We place you with a lender who will fund through an active consumer proposal or bankruptcy, not just the banks that say no. An independent appraisal confirms your home's value.
Review Your Full Cost Disclosure
Every cost is laid out in a written Cost of Credit Disclosure before you sign anything, so there are no surprises. Your lawyer completes the legal work and registers the loan.
Close and Move Forward
Pay out your proposal early, consolidate remaining debt, and follow the exit plan we build to return to bank rates when you are ready. Most files close within 5 to 10 business days.
Who Qualifies?
Approval is based primarily on the equity you have built up, not your credit score or employment status. Not sure how much equity you have? Use our home equity loan calculator to get an estimate.
Currently in a Proposal or Bankruptcy
An active consumer proposal or bankruptcy does not automatically disqualify you. With enough equity, we can often arrange financing while it is still in place.
Recently Discharged
Discharged but the banks still say no? Equity-based lenders will look at your file when the banks will not.
Self-Employed
No income verification or tax returns required. Your property qualifies you, not your paystub or Notice of Assessment.
Want to Pay Out a Proposal Early
Use your equity to clear the remaining balance, finish ahead of schedule, and start rebuilding credit sooner.
At Least 20% Equity in Your Home
Because all of our lending stays within an 80% loan-to-value cap, you need meaningful equity in the property.
Dealing With CRA Debts or Liens
Equity can clear CRA debts and liens that are blocking your other options.
or call 1-855-668-3074
How Much Can You Borrow?
The amount depends on your property's current value and the balance still owing on your mortgage. Turnedaway.ca does not arrange deals above 80% LTV, which protects you if property values decline. Here is a simple home equity loan consumer proposal example for a homeowner still making payments.
Simple Example
| Detail | Amount |
|---|---|
| Estimated Property Value | $640,000 |
| Maximum LTV at 80% | $512,000 |
| Existing Mortgage Balance | $360,000 |
| Equity You Could Access | up to $152,000 |
Commonly used to pay out the proposal balance and consolidate remaining debt. Use our home equity loan calculator for a personalized estimate. Financing available from $25,000.
What Can You Use the Funds For?
Homeowners use their equity to take control of an insolvency in several ways. These are the most common.
💳
Pay Out a Proposal Early
Clear the remaining balance and complete your consumer proposal ahead of schedule.
🏠
If you own a home, consolidating debt with your equity can keep you out of insolvency.
🏛
Settle CRA debts and liens that block your other options before enforcement escalates.
💼
Consolidate Remaining Debt
Roll high-interest balances into one manageable monthly payment secured against your home.
Consumer Proposal vs. Bankruptcy
Both are legal debt solutions under Canada's Bankruptcy and Insolvency Act, and both can be a fresh start. They differ in length, what they cover, how they affect your assets, and how long they stay on your credit report.
| Feature | Consumer Proposal | Bankruptcy |
|---|---|---|
| What it is | A legal agreement to repay part of what you owe | A legal process that eliminates most eligible unsecured debts |
| Typical length | Up to 5 years of payments | Often 9 to 21 months, first bankruptcy |
| Debt covered | Unsecured debt up to $250,000, not counting your mortgage | No upper limit on unsecured debt |
| Your assets | You keep your assets while you pay | You may surrender some non-exempt assets |
| Time on credit report | 3 years after completion, or 6 years after filing, whichever is first | 6 years after discharge (Equifax), 7 years in Ontario (TransUnion); 14 years for a second |
| Borrow against home equity | ✓ Possible now with equity | ✓ Possible now with equity |
Credit reporting timelines per the Government of Canada.
Our Commitment to Responsible Lending
It would be easy to promise the world to someone who feels out of options. We will not do that. Turnedaway.ca is a licensed mortgage brokerage, and our job is to give you honest guidance, not just a transaction.
We do not arrange financing above 80% loan-to-value, with no exceptions. Property values can fall, and when a homeowner is already in financial difficulty, taking them to the edge of their equity creates risk we are not willing to accept on their behalf. If your request goes over the limit, we will help you restructure it rather than stretch you thin. Every deal leaves meaningful equity in place as a buffer, with an exit strategy built in to move you back toward lower-cost financing.
The full cost of any solution, including the interest rate, lender fee, broker fee, legal fees, and appraisal, is disclosed in writing through a formal Cost of Credit Disclosure for your specific deal before you commit.
or call 1-855-668-3074
Real Client Results
Every situation is different. Here are three examples of how Turnedaway.ca helped homeowners access their equity through an insolvency when traditional lenders said no.
Case Study 1 | Consumer Proposal
Paying Off a Consumer Proposal Years Ahead of Schedule
A Durham Region homeowner was two years into a five-year consumer proposal. With a home valued at approximately $640,000 and a mortgage balance of $360,000, they accessed equity through a second mortgage while remaining below 80% loan-to-value.
Result: The consumer proposal was paid out in full years ahead of schedule, allowing the homeowner to begin rebuilding credit sooner and move forward financially.
Case Study 2 | Bankruptcy
Renewing a Mortgage After a Bankruptcy Discharge
A homeowner who had recently been discharged from a first bankruptcy was declined at mortgage renewal despite being current on all payments. Using the equity in the property, an alternative lending solution was arranged with a structured plan to return to conventional financing.
Result: The homeowner kept their home, secured a new mortgage, and established a clear path back to bank rates.
Case Study 3 | Debt Consolidation
Avoiding a Consumer Proposal Through Debt Consolidation
A homeowner struggling with high-interest credit card debt was considering filing a consumer proposal. Before proceeding, they explored their options and qualified for an equity-based mortgage solution that consolidated the debt while keeping total financing below 80% loan-to-value.
Result: The homeowner avoided filing a proposal, reduced their payments to a single monthly obligation, and preserved their credit profile.
or call 1-855-668-3074
Where We Serve
Turnedaway.ca helps homeowners dealing with consumer proposals and bankruptcies across Canada. The cities below represent areas we serve regularly, but they are not an exhaustive list. We work with homeowners in every province and territory with the exception of Quebec, Newfoundland, Yukon, the Northwest Territories, and Nunavut.
Financing available from $25,000. Call us at 1-855-668-3074 or get started online today.
Frequently Asked Questions About a Home Equity Loan, Consumer Proposal or Bankruptcy
Can I get a home equity loan while I am still in a consumer proposal?
Yes. A home equity loan consumer proposal arrangement is possible if you own a home with enough equity. Approval is based on the equity in your property rather than your credit score, so an active proposal does not automatically disqualify you. Many homeowners use the funds to pay the proposal out early.
Can I borrow while I am still in a bankruptcy?
Often, yes. We work with lenders who will fund through an active bankruptcy when there is enough equity in the home. The focus is on your property and equity position, not your credit history.
Will a home equity loan pay off my consumer proposal or bankruptcy?
It can. If you have enough equity, the proceeds can settle the remaining balance, which often lets you complete the process sooner and start rebuilding credit. The amount available depends on your home's value and existing mortgage, within the 80% cap.
How soon after discharge can I qualify for a regular mortgage?
Conventional lenders generally look for two years past completion or discharge, plus re-established credit. Alternative lenders may approve sooner on different terms. If you already own a home, there is no waiting period to borrow against your equity.
Do you lend based on my credit score?
No. As an equity-based brokerage, approval is based on the equity in your home, capped at 80% of its value. That cap is a protection for you, not a limit we hide.
How much can I borrow?
Total financing is capped at 80% of your home's value, less any existing mortgage. The exact amount depends on your property value and current financing. Estimate it with our home equity loan calculator.
What does it cost?
The full cost includes the interest rate, lender fee, broker fee, legal fees, and in most cases an appraisal. We provide a written Cost of Credit Disclosure before you commit to anything, and we subsidize appraisal costs wherever possible. For a general overview, visit Canada.ca.
Can I avoid filing a proposal or bankruptcy if I own a home?
Sometimes. If you have enough equity, consolidating your debt against your home can be an alternative to filing. A trustee can advise on the insolvency side, and we can tell you what your equity makes possible.
Will this affect my mortgage renewal?
It can, depending on the lender, since some require both loans to be handled together. We plan for your renewal or refinance up front so there are no surprises down the road.
How long does a proposal or bankruptcy stay on my credit report?
A consumer proposal is removed 3 years after you complete it, or 6 years after you file, whichever comes first. A first bankruptcy is removed 6 years after discharge by Equifax and 7 years in Ontario by TransUnion. You can confirm the details on the Government of Canada credit report page.
Get Approved During or After a Consumer Proposal or Bankruptcy
If you own a home, a consumer proposal or bankruptcy does not have to be the end of your options. Apply today and get a response within 24 hours, with no obligation and full transparency on cost.
Get Approved Nowor call 1-855-668-3074