Start with the status of the insolvency
A lender will want to know whether the proposal has been completed or the bankruptcy discharged, when it occurred, what caused it and what has changed. Keep the certificate of full performance or discharge documents and make sure the credit bureaus report the information accurately.
Rebuild credit with purpose
- Check both major credit reports for errors
- Pay every account on time
- Keep revolving balances low relative to their limits
- Use new credit carefully and avoid repeated applications
- Save consistently for the down payment and closing costs
- Do not pay expensive credit-repair fees for promises that cannot be guaranteed
What mortgage lenders may review
The lender may consider time since completion or discharge, the reason for the insolvency, credit established afterward, current debt, income stability, down-payment source and property quality. Mainstream, alternative and private lenders use different policies, documentation and pricing.
Do not rush to pay out a proposal with a costly loan
The Office of the Superintendent of Bankruptcy has warned about high-cost loans marketed to people during or after a consumer proposal. Paying a proposal early does not automatically create immediate mortgage eligibility. Compare the full loan cost and get advice from the Licensed Insolvency Trustee handling the proposal.
Build a realistic mortgage plan
A useful plan identifies the target timeline, credit milestones, required down payment, affordable payment and lender route. If short-term alternative financing is considered, it should include the cost and a credible exit to stronger financing rather than relying on future hope.
Frequently asked questions
Can I get a mortgage after a consumer proposal in Ontario?
It may be possible. The available lender category depends on whether the proposal is complete, time since completion, rebuilt credit, income, down payment, property and the rest of the application.
Can I get a mortgage while still in a consumer proposal?
Some alternative or private options may exist, but choices can be limited and costly. Obtain advice from your Licensed Insolvency Trustee and compare the complete mortgage and proposal implications before proceeding.
How long does a consumer proposal stay on my credit report?
The reporting period depends on completion timing and the credit bureau. The Financial Consumer Agency of Canada states that a proposal is generally removed three years after completion or six years after signing, whichever comes first.
Should I use a credit-repair company after bankruptcy?
Be cautious with guaranteed-score claims or expensive rebuilding loans. You can review your credit reports, correct errors and rebuild through responsible use without paying for unrealistic promises.
Reviewed by Sunny Nayyar, Mortgage Agent Level 2FSRA #M23007062Tango Ontario Brokerage #13691Serving OntarioUpdated September 18, 2026
