Mortgage – Consumer Proposal
Questions: At what point can I get a mortgage during a consumer proposal? If so, what are the (ball park) interest rates usually offered? Would a refinance be better if I currently own my home? Do you think my current lender would renew my current mortgage if I have recently filed a consumer proposal?
Answer: The answer depends on your personal situation. In most cases, if your existing mortgage is up to date, you will have no problem renewing your mortgage. If you start a consumer proposal and then attempt to get a mortgage, it will be much more difficult. There are some lenders that will give you a mortgage after your proposal payments have been in good standing for one year. For more information, contact a mortgage broker (here’s a link to a mortgage broker that can find mortgages in most areas in Canada). In most cases, if you qualify, the mortgage interest rate will be one or two points higher than you would get if you had perfect credit, but that will also depend on your income, equity in your house, and other factors.