Committed to making your mortgage approval process stress free and efficient for over 25 years, Sunlite Mortgage is one of Toronto, Canada’s leading mortgage brokerages.
The last couple of years, with high inflation after the pandemic, have financially frustrated some homeowners. There has been a high delinquency rate for loans, credit cards and mortgage repayments. Unfortunately, some Canadians have had to file for bankruptcy or a consumer proposal. If you are a homeowner in a consumer proposal in Canada, you may be wondering if getting a mortgage in a consumer proposal is possible. Refinancing your mortgage could significantly reduce your monthly payments, giving you more financial breathing space. Some institutional mortgage lenders, alternative lenders, and most private lenders offer mortgages to someone currently in a consumer proposal. Talking to an experienced Sunlite Mortgage broker with access to many lenders could be instrumental in helping you secure the best mortgage rate.
It’s crucial to fully comprehend the terms of your consumer proposal, including the monthly payments and any potential restrictions it might impose. This understanding will empower you to make informed decisions about your financial situation and mortgage options.
Getting a mortgage in a consumer proposal can be stressful, given the thorough scrutiny lenders undertake due to the associated risk. Your consumer proposal status may present challenges, as lenders view you as a higher risk and charge a higher mortgage rate. You can overcome these obstacles with the right strategy and guidance from a knowledgeable Sunlite Mortgage broker. Their expertise, access to multiple mortgage lenders, and personalized service can significantly enhance your chances of obtaining the right mortgage that aligns with your needs and helps you realize your homeownership aspirations with little or no stress.
Before applying to a mortgage lender for a mortgage, your Sunlite Mortgage broker will thoroughly assess your financial situation, including your credit, income, expenses, debts, and assets. By entering a consumer proposal, you would have consolidated your debts and reduced your monthly payment. You could reduce even further by refinancing your mortgage to add the consumer proposal debt to the mortgage. The mortgage broker would require a copy of the Statement of Affairs and the certificate of full performance to ensure you can get new debt. It is essential to note that B, Alternative Lenders, and Private Lenders will refinance your mortgage one day after a proposal. To get a mortgage from an A Lender, you must be discharged from the proposal for at least two years and then have a two-credit history for them to consider offering you a mortgage. If a mortgage lender is involved in bankruptcy, they will unlikely provide you with a mortgage.
Getting a mortgage in a consumer proposal is more accessible than getting a loan in a consumer proposal, as you will be using your home as collateral for the mortgage. In contrast, with the loan, you may not have security and would need a co-signer. As long as there is equity in the property to meet the lender’s maximum loan-to-value (LTV), you could qualify on your own. With many mortgage lenders to choose from with different criteria and requirements, your Sunlite Mortgage broker can get you the best mortgage rate for your unique situation.
If you are currently in a consumer proposal or thinking about one and will need a mortgage, talk to a Sunlite Mortgage agent or provide your information here, or contact us, and one of our mortgage agents will contact you.
