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Mortgage Squad Advisors
Case studyConsumer proposal London, ON· Refinance · Post-discharge · B-lender

Refinanced after a discharged consumer proposal to consolidate debt and cut the monthly payment

Twenty months after a discharged proposal, a homeowner refinanced with a B-lender to roll high-interest credit-card debt into the mortgage and free up monthly cashflow.

Client
Homeowner, consumer proposal discharged ~20 months prior, two clean trade lines
Situation
Post-proposal credit-card balances had crept back to ~$38,000 at 20%+ interest
Goal
Consolidate to one payment and lower monthly cost before A-lender eligibility
The challenge

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.

What we did

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 client 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.

The outcome
Home value
$620,000
New mortgage
$470,000 (~76% LTV)
Debt consolidated
~$38,000 (cards)
Monthly cashflow
+~$540/mo*
Rate secured
~6.49% (B-lender)*
Exit plan
Refinance to A at ~24 months

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.

The takeaway

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.

Illustrative case study. Details are representative of the types of files Mortgage Squad Advisors funds and have been anonymized — no client names or identifying information are shown. Rates, products, and approvals depend on your individual situation and lender criteria at the time of application. Figures reflect 2026 market conditions and are examples, not guarantees of outcome.

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.

FAQ

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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