Example: refinancing after a completed consumer proposal to consolidate debt and cut the monthly payment
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.
Twenty months after completing a proposal, an illustrative homeowner refinances with a B-lender to roll high-interest credit-card debt into the mortgage and free up monthly cashflow.
The homeowner had rebuilt well after discharge but wasn't quite at the roughly two-year, fully-seasoned mark most A-lenders want — so the bank wouldn't refinance yet.
Meanwhile, high-interest revolving debt was eating cashflow every month, and waiting another few months for A eligibility meant more interest paid in the interim.
We arranged a B-lender refinance to roughly 76% loan-to-value, sized to pay out the credit-card balances and leave a sensible equity cushion. That replaced several 20%+ payments with a single mortgage payment at a far lower blended rate.
We set a refinance-trigger target: once the borrower crosses the two-year seasoned-credit mark, we refinance again into A-lender pricing — so the B-lender step is a short, purposeful bridge, not a long-term rate.
Consolidating the revolving debt into the mortgage lowered the blended interest sharply and freed meaningful monthly cashflow. The B-lender premium is temporary by design, with the A-lender refinance mapped for the moment the file qualifies.
Figures are illustrative scenario assumptions (2026), not current rates, quotes or a record of a funded deal. For current pricing, see today’s rates.
After a discharged proposal, a B-lender refinance can consolidate high-interest debt and relieve cashflow before you're A-lender-eligible — provided the equity supports it and the exit to prime is planned.
Rules and sources this example relies on
- How long information stays on your credit report (Financial Consumer Agency of Canada)
- You owe money: consumer proposals (Office of the Superintendent of Bankruptcy)
- Borrowing against home equity (Financial Consumer Agency of Canada)
- Guideline B-20: Residential Mortgage Underwriting Practices and Procedures (OSFI)
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.
In a similar situation?
Every file is different — but the playbook is the same: the right lender, structured properly. Tell us your situation and we’ll map your options. Free, no credit pull to start.
Common questions
Can I refinance after a consumer proposal to consolidate debt?+
Often yes. Once discharged (and sometimes during an active proposal), a B-lender or private lender can refinance to roll high-interest debt into your mortgage at a lower blended rate, typically up to about 80% loan-to-value at alt-A. A-lenders usually want roughly two years of re-established credit first.
How much equity do I need to refinance after a proposal?+
Generally the new mortgage needs to stay under about 80% of value at alt-A, or 65–75% on private. On a $620,000 home that's meaningful room to consolidate. Ranges are illustrative and vary by file and lender.
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