How do I get a mortgage after bankruptcy in Canada?
We’ve developed a Quick Credit Repair Strategy to help Canadians bounce back on their feet quickly!
If you or someone you know has been through an emotional Bankruptcy in Canada due to a major life event, business failure, loss of income or family crisis, regardless of what you have been told, there is still hope. Ajit Hundal, our Mortgage Consultant at LoanBox.ca has helped many Canadians with re-structuring and re-establishing their credit after they have been through a Bankruptcy or Consumer Proposal.
By following our Quick Credit Repair Strategy, your credit can be fully repaired in as little as 1 year after you have been discharged from your Bankruptcy or Consumer Proposal. At LoanBox.ca we specialize in providing mortgage financing to Canadians with bad credit, previous Bankruptcy, Consumer Proposal and more.
There are several different mortgage programs available before, during and after your Bankruptcy in Canada. Most lenders would prefer that the borrower is fully discharged from their Bankruptcy before obtaining a mortgage. By following our Quick Credit Repair Strategy – you can qualify for a mortgage in as little as 1 month after the bankruptcy is discharged.
Here’s our Quick Credit Repair Strategy:
1. Get Discharged ASAP – The sooner you get discharged from your Bankruptcy, the sooner you can start to rebuild your credit. Consult your local Bankruptcy Trustee to find out the best strategy for you to get discharged in the shortest time possible.
2. Check Credit after Discharge – After you have been discharged from Bankruptcy, check your credit bureau report from TransUnion Canada and Equifax Canada to make sure that all the debts that were included in your Bankruptcy were also updated, included and paid off on your credit bureau.
3. Re-Build your Credit ASAP -Rebuilding your credit after your Bankruptcy as soon as possible is the best thing you can do to bounce back quickly. The first step in doing so is to apply for a couple of Secured Credit Cards, you can start with one – but we suggest you apply for at least two or more from different lending institutions. Here are a few of these lending institutions that have helped our clients bounce back quickly and successfully: Capital One, Home Trust and Peoples Trust.
4. Pay Outstanding Taxes to Revenue Canada -Even though you have been discharged from your Bankruptcy, the lenders will still want to see that you have paid any outstanding taxes to Revenue Canada. The lender will request tax returns from the previous year showing that the income taxes were paid in full.
5. Apply for an RRSP Loan - An RRSP loan is secured by the RRSP that is invested and is another great way to rebuild your credit quickly and efficiently while growing your savings at the same time. Visit your local bank or credit union and talk to them about applying for an RRSP Loan. If you’re a First Home Buyer in Canada, you will be able to withdraw up to $25,000 from your RRSP to be used towards a down payment of a home in Canada, but only once the loan is paid off.
6. Keep all Bankruptcy Documents - Even though the Bankruptcy has been discharged, the lender which you are applying for mortgage with may ask you to provide a copy of the Statement of Discharge along with copies of the Bankruptcy papers showing all the creditors, accounts and balances that were included in the Bankruptcy. Keep these documents in a safe place as you will very like be asked to provide these documents at time of application.
7. Start Saving - The higher your net worth, the stronger your application will be when you apply for that mortgage loan. Lenders will choose your mortgage application over others if you have a substantial savings, good strong income and job stability and re-established credit after being discharged from Bankruptcy.
8. Get Stable Income – A strong or stable proof of income will make the lender feel more comfortable about the borrower being able to repay his or her mortgage obligation. An example of a stable source of income would be a Full Time professional job, with good strong income and borrower must not be on probation.
If you follow our proven Credit Repair Strategy above, you will be well on your way to getting that mortgage application approved. If you have met the above requirements and are ready to take the next step, you may either Apply Online or Contact Us for more information on how to get pre-approved to owning your own home!
We provide mortgage solutions to borrowers across British Columbia including: Victoria, Whistler, Nanaimo, Princeton, Vancouver, Burnaby, Squamish, North Vancouver, West Vancouver, Coquitlam, Port Moody, Maple Ridge, Surrey, Langley, Abbotsford, Chilliwack, Hope, Kelowna, Kamloops, Fort St. John, Prince George, Prince Rupert and more.