Question: I am currently in a consumer proposal and looking to get a RRSP loan. Can I qualify for a loan while in a consumer proposal?
RRSP Loans and Debt Programs
In most cases it is difficult to borrow while you are in the middle of a consumer proposal, debt management plan or any debt relief program. You have two options.
First, you could talk to family or friends about getting a loan for you, or perhaps co-signing a loan.
Second, you may qualify if you deal directly with a financial planner that sells mutual funds for RRSPs, because they may have less strict lending rules.
If you borrow money you are required to disclose that you have not yet completed your proposal. Any application you make for a new loan during a consumer proposal, debt management plan or similar program will require a credit check. The fact that you are in a consumer proposal or similar program will appear on your credit report. This is why it is difficult to qualify.
If you don’t qualify, your goal should be to get your proposal paid off as quickly as possible, so that you can then have more cash available to make RRSP contributions.