Consumer Proposal or Bankruptcy in Canada
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Navigating through a consumer proposal or bankruptcy can be challenging, stressful, and sometimes, it seems like there’s no way out. But there is hope and a solution tailored just for you.
With our expert advice and guidance, you can overcome this financial strain without losing your significant assets. Contact us today to discuss your options.
Home Equity Loans with a Consumer Proposal or Bankruptcy
Approvals in as fast as 24 hours
What is Home Equity?
The equity in your home is the difference between its market value less any mortgages owing on the property. Homeowners can utilize this home equity to their benefit as it can be used as collateral for future borrowing. Having home equity allows homeowners to apply for a home equity loan or home equity line of credit (HELOC).
A home equity loan, a second mortgage, is a secured term loan with a fixed interest rate. Borrowers can use home equity loans to have access to cash to cover any expenses. You will receive an immediate lump sum if a home equity loan is approved. The repayment process begins soon after the homeowner receives the funds.
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Worried because you have a consumer proposal or bankruptcy?
TurnedAway.ca can Help Turn Things Around!
You don’t have to make these decisions alone. If you’re unsure on what to do about your debt, don’t hesitate to contact TurnedAway.ca. We work with you to create a personalized plan to help you get closer to being debt free.
What Impact Does a Consumer Proposal or Bankruptcy Have on Your Credit Rating?
Filing for a consumer proposal or bankruptcy will undoubtedly negatively impact on your credit rating. A consumer proposal typically affects your credit rating less than bankruptcy.
Bankruptcy can be on your record for up to seven years, whereas a consumer proposal stays on your record for only three years after the final payment.
Both situations can make it more challenging to obtain credit, but with proper financial management, it is possible to improve your credit rating over time. Talk to one of our experts today and learn how we can help improve your credit standing.
Alternative Options to Consumer Proposals or Bankruptcy
Struggling to find an alternative solution to filing for bankruptcy? Here are some potential options to think about:
Debt Consolidation
If you find managing multiple debts with varying interest rates challenging, consolidating your debts into a single loan is worth considering. Consolidating all your debts to a single monthly payment at a lower interest rate can simplify your finances and make managing your debt easier.
Informal Debt Settlement
An informal debt settlement is an arrangement that is voluntarily negotiated between you and your creditors regarding the terms of the debt you owe. To initiate this process, you must contact each of your creditors directly and attempt to negotiate aspects such as interest rates, payment schedules, and the overall amount owed.
How to Qualify for a Mortgage with a Consumer Proposal or Bankruptcy?
Qualifying for a home equity loan with a bankruptcy or a consumer proposal is challenging. Here are a few essential things to keep in mind:
Consult a Mortgage Professional Before Filing a Consumer Proposal or Bankruptcy
If you already own a home, you may be able to avoid filing a consumer proposal or bankruptcy by using the equity in your home! If you are considering buying a new home, you should complete your consumer proposal or bankruptcy before taking on substantial new credit. This will give you time to get your financial standing in order, build your credit score, and accumulate a down payment.
Understand Your Mortgage Approval Options
You can get a standard rate mortgage from conventional lenders if it’s been two years since you’ve completed your consumer proposal or bankruptcy. Sub-prime lenders may approve you earlier, but their terms may not be as favorable.
Review Your Credit Report
Ensure your credit history is free of over-extended debt and take extra precautions to verify that no errors exist on your credit bureau files. Doing this will help ensure you have smoother financial transactions in the future.
Highlight Other Positive Factors
Home equity lenders may also consider whether you demonstrate other positive attributes, such as earning a steady income, the length of time you have been at your current address and if you have savings and other assets.
Get Expert Financial Counseling
Canadians can access qualified financial counseling as part of both consumer proposals and personal bankruptcy systems. This allows them to receive personalized advice and resources on credit best practices and other important financial topics.
There is no quick fix to repairing your credit score. Take the time to carefully consider your options and seek advice from a financial expert to ensure that you make the most appropriate decision for your current situation. Book a call with our mortgage specialists to learn more about your options.
Act Now
Apply For a Home Equity Loan Consumer Proposal and Get Approved Now!
We’ll show you how to navigate this difficult time of having a bankruptcy or consumer proposal and ensure a smoother financial future for you and your family.
Can I Get a Home Equity Loan While in Consumer Proposal or Bankruptcy?
If your bank has turned you away because you have poor credit, have previously filed or about to file for a bankruptcy/consumer proposal, there are options for you.
We have been helping clients obtain mortgage financing for over 30 years now, no matter how poor their credit was. There might seem to be numerous lenders that fill this void where big banks are unwilling to assist but only a few can deliver.
If you want to refinance a mortgage or home equity loan, we can arrange to pay your consumer proposal or bankruptcy out from the proceeds of your home equity loan.
How Soon After a Consumer Proposal or Bankruptcy Can I Get a Mortgage in Canada??
You may be curious how quickly you can become eligible for a mortgage after going through a consumer proposal or bankruptcy. While there are restrictions, there are still options available to you.
- If you own a home and are looking for the best option for a home equity loan, there are no restrictions on how soon you can borrow money.
- If you don’t own a home and are considering filing for bankruptcy or a consumer proposal, or have filed or completed one, there are important alternatives TurnedAway can help you explore.
- If you have been recently discharged from bankruptcy or a consumer proposal and are looking to purchase a home, most lenders will require you to be discharged for two years and have re-established your credit score.
There are still options if you want to buy a home. Working with an experienced mortgage broker can help you find a lender willing to bypass some of the lending criteria major financial institutions require.
However, you must have a down payment of at least 20% and possibly more when purchasing your home, depending on your situation.
How Can TurnedAway.ca Help?
At TurnedAway.ca, we take a practical approach to underwriting and help clients seeking loans and mortgages while in a consumer proposal or bankruptcy, or had just been recently discharged from it.
No matter how overwhelming your financial challenges may seem, we can help you find a solution. With our expertise from over 30 years of experience assisting clients to get over consumer proposal and bankruptcy issues, we can expertly guide you through the process. Let us help you move forward toward your financial goals!