Example: buying 18 months after a bankruptcy discharge with a B-lender and an exit to A
Illustrative example, not a real client file. A composite scenario showing how a file like this can be structured. Any rate shown is a dated assumption, not a current rate or offer; see today’s rates on our live board.
Eighteen months after discharge from a first bankruptcy, an illustrative borrower with two clean re-established trade lines buys through a B-lender, before the two-year A-lender guideline, with a mapped exit to prime.
Most A-lenders look for about two years post-discharge with clean re-established credit. At 18 months out, the borrowers didn't yet meet that guideline — but they'd done the rebuild right and were tired of watching prices move.
A bank declined on the timing alone, despite strong income and clean recent credit.
We placed the file with a B-lender that accepts a discharged bankruptcy with re-established credit and a reasonable down payment. We documented the two clean trade lines, verified income and employment, and confirmed the discharge was reporting correctly on both bureaus.
We built it as a bridge, not a destination: a short B-lender term now, with a written plan to refinance to A-lender pricing once the borrowers cross the two-year mark with clean credit — subject to lender approval at that time.
The borrowers bought roughly six months sooner than the wait-and-see path. The B-lender rate is a real, temporary cost — offset by getting into the market before further price appreciation, with the A-lender refinance mapped for the moment they qualify.
Figures are illustrative scenario assumptions (2026), not current rates, quotes or a record of a funded deal. For current pricing, see today’s rates.
A discharged bankruptcy doesn't lock you out of homeownership for years. With two clean re-established trade lines and a reasonable down payment, a B-lender may fund a purchase before the two-year A-lender guideline — and a good broker plans the exit to prime from day one. Subject to lender approval.
Rules and sources this example relies on
- How long information stays on your credit report (Financial Consumer Agency of Canada)
- Compare debt solutions (Office of the Superintendent of Bankruptcy)
Illustrative example, not a real client file. This scenario is a composite written to show how a file like this can be structured; it describes no real client, and no real outcome is claimed. Any rate shown is a dated scenario assumption (2026), not a current rate or offer. Approvals, rates, fees and costs depend on your situation and on lender and insurer criteria at the time of application.
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Common questions
How soon after a bankruptcy discharge can I buy a house?
What counts as re-established credit after bankruptcy?
Keep reading
More case studies
- After bankruptcyExample: refinancing a home kept through bankruptcy while credit rebuilds
- After bankruptcyExample: buying after a second bankruptcy with a private mortgage and a longer path to A pricing
- Self-employedExample: how a $760K purchase could be structured for a self-employed buyer a bank declined
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