Example: self-employed after a consumer proposal, and how a purchase could still be funded
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 incorporated contractor with written-down income, 16 months after completing a proposal and declined twice, buys through a B-lender that accepts both self-employed income and a recent proposal.
This file carried two challenges at once: a recent consumer proposal, and self-employed income that didn't show cleanly on a T4 or line 15000. Two lenders declined — one on the proposal, one on the income documentation.
The borrower's business was genuinely healthy; the paperwork just didn't fit a bank's rigid, single-product view.
We matched the file to a B-lender that both accepts a recently-discharged proposal with re-established credit and underwrites self-employed income through business bank statements and financials rather than line 15000 alone.
We documented the business income properly, verified the proposal was paid and reporting correctly, confirmed the two seasoned trade lines, and structured the purchase at 20% down with a mapped exit to A-lender pricing as the file continues to season.
The same alternative lenders that work with a recent proposal also underwrite self-employed income — so what looked like a double penalty at a bank was a single, fundable file at the right B-lender, with a clear path back to prime.
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 consumer proposal plus self-employed income isn't a double disqualification. The alternative lenders that handle proposal files also accept stated/business-for-self income, so the two challenges are solved on the same file.
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)
- 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.
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Common questions
Can I get a mortgage if I'm self-employed and had a consumer proposal?
How do lenders verify self-employed income after a proposal?
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