Example: buying a home during an active consumer proposal with a specialty B-lender

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.