Example: buying a home during an active consumer proposal with a specialty B-lender
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.
An illustrative single-income buyer, 18 months into an active consumer proposal and current on payments, buys through a specialty B-lender rather than waiting for the proposal to be completed.
Most lenders want a consumer proposal discharged before they'll consider a purchase, and the borrower's bank declined automatically the moment the proposal appeared on the bureau — regardless of the fact that every trustee payment had been made on time.
With rents rising locally, waiting three-plus years for full discharge meant watching prices move further out of reach.
We placed the file with one of the few specialty B-lenders that will consider an active consumer proposal, provided the borrower is demonstrably current on trustee payments and has begun re-establishing credit. We documented the payment history, verified income, and confirmed the proposal was reporting correctly on both bureaus.
The lender required a larger down payment to offset the active-proposal risk. We structured it as a short B-lender term — a bridge, not a destination — with a written plan to refinance toward A-lender pricing once the proposal is discharged and credit has seasoned.
The borrower bought during the proposal instead of waiting for discharge. The B-lender rate and fee are real, temporary costs — offset by getting into the market sooner — and the file is built to refinance to prime once the proposal discharges and credit matures.
Figures are illustrative scenario assumptions (2026), not current rates, quotes or a record of a funded deal. For current pricing, see today’s rates.
An active consumer proposal is not an automatic no. A specialty B-lender (or private capital) can fund a purchase when you're current on payments, have re-established some credit, and can put more down — with the exit to A pricing planned from day one.
Rules and sources this example relies on
- You owe money: consumer proposals (Office of the Superintendent of Bankruptcy)
- Compare debt solutions (Office of the Superintendent of Bankruptcy)
- How long information stays on your credit report (Financial Consumer Agency of Canada)
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
Can I buy a house during an active consumer proposal?
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Keep reading
More case studies
- Consumer proposalExample: refinancing after a completed consumer proposal to consolidate debt and cut the monthly payment
- Consumer proposalExample: paying off a consumer proposal early with home equity
- Consumer proposalExample: self-employed after a consumer proposal, and how a purchase could still be funded
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