A bankruptcy discharge is a fresh start — not a seven-year sentence.
Once you’re discharged with two re-established trade lines, B-lenders will fund a purchase or refinance. A-lender pricing typically returns about two years post-discharge.
Discharged → B-lender2 trade lines re-established~2 yrs to A-lender5-10% down possiblePurchase or refinance100% confidential
The myth is that a bankruptcy locks you out of home ownership for seven years. The reality is far more hopeful: the moment you’re discharged and have begun re-establishing credit, B-lenders will consider you, and most clients are back to full A-lender pricing roughly two years after discharge. What actually moves lenders from no to yes isn’t just the passage of time — it’s discharge plus two new trade lines reporting clean. Start rebuilding the day you’re discharged and the path back is measured in months, not years.
What you get
Why Canadians choose Mortgage Squad Advisors.
Discharged bankruptcy: purchase, refinance, or HELOC available at B-lenders right away
Need two re-established trade lines reporting 12+ months clean for the strongest files
A-lender pricing typically returns ~24 months post-discharge with clean re-establishment
Private mortgage option for equity-based files before re-establishment is complete
Up to 80% LTV on alt-A; 65-75% on private depending on property
5-10% down possible at certain B-lenders post-discharge with insurer approval
Second-bankruptcy and bankruptcy-then-proposal files mapped individually — still solvable
Built-in plan to refinance to A-pricing the moment you cross the 24-month milestone
No judgment — bankruptcy is a legal fresh-start tool, and you used it
All lender + broker fees disclosed in writing upfront
Instant check · no credit pull
Your path back to a mortgage
Tell us where you are — we'll map the realistic timeline and the exit to A-lender pricing.
Situation
Status
17 months
Time since discharge
B-lenders — with 2 clean re-established tradelines
Where you stand today
~7 months
Estimated time to A-lender pricing
Re-establish 2 clean tradelines (secured card + small loan), reported on time, utilization under 30% — that’s what moves your score toward the A-lender exit.
Estimates only — a licensed advisor confirms your file. FSRA #13737.
Tell us your discharge date and what you’ve rebuilt since — secured card, RRSP loan, car loan, any trade line reporting. We map your full options in 24 hours and tell you exactly which lenders are open to you today and which open up at the next milestone.
2
Match the lender
Recently discharged with two clean trade lines → B-lender purchase or refinance. Discharged but still rebuilding → private bridge against equity. Two-plus years discharged with strong re-establishment → we test A-lenders. We always quote the cheapest path that approves.
3
Plan the path to A
We set a refinance trigger — usually the 24-month post-discharge mark — and monitor your credit recovery. The day you qualify for A-lender pricing, we re-shop and move you off the alt rate. Most clients complete the B-to-A journey within 24-30 months of discharge.
How soon after a bankruptcy can you actually get a mortgage?
The clock that matters is your discharge date, not your filing date. Discharge is the legal milestone where the bankruptcy is closed and you begin rebuilding — and most lenders measure everything from that day.
For A-lenders (banks and prime monolines), the common threshold is roughly two years past discharge, paired with re-established credit reporting clean. That two-year window is a guideline, not a statute; underwriters weigh it alongside down payment, income stability, and how cleanly you’ve rebuilt. Some files clear closer to one year post-discharge when offsetting factors are strong — a large down payment, secure long-tenure employment, and pristine new trade lines.
B-lenders move faster: many will fund a purchase or refinance the moment you’re discharged with credit re-establishment underway. Private lenders are faster still — they underwrite on equity, so a sufficient down payment or existing home equity can open a file before re-establishment is even complete. The earlier you borrow, the higher the rate; that trade-off is exactly why this is a bridge, not a destination.
What does ‘re-established credit’ actually mean to an underwriter?
‘Re-established credit’ is a specific test, not a vague vibe of being responsible again. Underwriters generally want to see at least two new trade lines — opened after discharge — each reporting clean for 12 or more months with no missed payments.
The trade lines need real substance. A secured credit card with a meaningful limit plus a small installment or car loan is the classic pairing; two tiny store cards rarely satisfy the same reviewer. Utilization matters too: carrying a card near its limit reads as stress even when payments are perfect, so keeping balances low (well under half the limit) strengthens the file.
The goal is a clean, recent payment story that overwrites the bankruptcy in an underwriter’s eyes. Two clean trade lines reporting 12-plus months is the single biggest lever that moves a file from B-lender territory toward A-lender pricing. Bruised credit narrows the lender list; deliberate re-establishment widens it back open.
First vs second bankruptcy, and discharged vs undischarged — why it changes everything
Two distinctions reshape your options more than almost anything else. The first is discharge status. An undischarged bankruptcy is still legally open, and the vast majority of lenders — A, B, and most private — will wait until you’re formally discharged before funding. Discharge is the gate; until you’re through it, options are extremely limited.
The second is whether this is a first or a repeat bankruptcy. A first bankruptcy typically reports on your credit bureau for about six years from discharge; a second reports far longer, often around fourteen years. Because A-lenders generally want the event aged off or well past the two-year mark with clean rebuilding, a second bankruptcy usually leans on B-lender and private financing for longer.
It’s also worth separating bankruptcy from a consumer proposal — a proposal is a different legal tool with its own timeline, and lenders read the two differently. We map your exact discharge dates and event history so the timeline is precise, not guesswork.
Which lender funds you — the post-bankruptcy lender ladder
Think of post-bankruptcy financing as a ladder you climb back up. Each rung trades a higher rate for earlier access, and the goal is always to climb off the alt rungs as fast as your credit allows.
A-lenders sit at the top: best pricing, but they generally want roughly two years past discharge with two clean re-established trade lines and provable income. This is where everyone wants to land. B-lenders sit in the middle — they’ll fund sooner, often right after discharge with rebuilding underway, in exchange for a modest premium over prime, commonly in the range of a hundred-odd basis points. Private lenders sit at the bottom rung: equity-based, the fastest to close, and the most expensive, with a meaningful rate premium plus lender and broker fees.
With access to 50-plus lenders including B and private, an FSRA-licensed brokerage (#13737) places you on the highest rung you currently qualify for — never higher-cost than necessary. Every lender and broker fee is disclosed in writing, in any of 50-plus languages.
The recovery plan: why the mapped exit saves more than the premium costs
Borrowing on an alt mortgage isn’t the plan — it’s step one of the plan. The differentiator is what comes next: a mapped exit back to A-lender pricing, usually within 12 to 24 months, built before you ever sign the first deal.
Here’s how it works. We get you funded today on the best rung you qualify for, then set a refinance trigger — typically the moment you cross two years post-discharge with two clean trade lines. We monitor your credit recovery against that date, and when you clear the bar, we re-shop the file and move you onto A pricing. The alt premium you paid during the bridge is temporary; the prime mortgage you refinance into runs for a full term.
For many clients, the interest saved over that eventual A-lender term exceeds everything they paid in alt premium during the rebuild. The premium buys time and a roof; the mapped exit is what makes the math work. No judgment, just the plan.
FAQ
Common questions, answered.
Don’t see yours? Ask Maya — instant answer, any time.
How long after bankruptcy can I get a mortgage?
You can qualify with a B-lender as soon as you’re discharged, provided you’ve started re-establishing credit. For A-lender (bank) pricing, the general standard is two years post-discharge with two trade lines reporting at least $1,000-$2,000 limits, clean for 12+ months. Equity-based private financing can happen even sooner. Discharge is the starting line, not the finish line.
What counts as ‘re-established credit’?
Lenders typically want to see two active trade lines reporting clean — for example a secured credit card and a small installment loan or car loan — each with at least 12 months of perfect payment history and a meaningful limit. Two clean trade lines post-discharge is the single biggest factor that moves you from B-lender to A-lender eligibility.
How much down payment do I need after bankruptcy?
Recently discharged at a B-lender: typically 10-20% down. Two-plus years post-discharge with strong re-establishment: 5-10% possible with insurer approval — Sagen and Canada Guaranty both run post-bankruptcy programs. Private financing: 25-35% down based on equity. The cleaner and older the discharge, the lower the down payment lenders will accept.
Can I refinance my existing home after a discharge?
Yes. If you kept your home through the bankruptcy and have equity, we can refinance at a B-lender (or private if you’re still rebuilding) to consolidate debt, fund renovations, or simply move to better terms. Many post-discharge clients refinance to roll high-interest rebuilding debt into one lower payment.
Does the bankruptcy stay on my credit report forever?
No. A first bankruptcy stays on Equifax for about 6 years from discharge and on TransUnion for 6-7 years from discharge (it varies by province). A second bankruptcy stays roughly 14 years. A-lenders generally want it either aged off or at least 2 years past discharge with clean re-establishment — the aging plus new clean trade lines is what restores full pricing.
What if this is my second bankruptcy?
It’s a longer road but still solvable. A second bankruptcy stays on your bureau longer and most A-lenders want it fully aged off, so B-lender and private financing carry you in the meantime. We map the exact timeline on your file and set the trigger date for when A-lender pricing realistically returns.
I had a bankruptcy and then a consumer proposal — which matters?
Lenders look at the most recent insolvency event for timing. If a discharged bankruptcy was followed by a proposal, the proposal’s completion date usually governs. The recovery timelines stack, but with strong re-establishment both eventually fall off and A-lender pricing returns. We map the precise path so there are no surprises.
Will my employer or landlord find out?
Mortgage financing is confidential. Your discharge is a matter of credit-bureau record, not public broadcast — your employer isn’t notified by us or the lender, and your conversations with our team stay private. We handle post-bankruptcy files every week and treat every one discreetly.
What’s the rate premium on a post-bankruptcy mortgage?
B-lender pricing typically runs +75-150 bps over A-lender rates; private sits higher at +200-500 bps plus a lender and broker fee. The premium is temporary — the entire plan is built around refinancing back to A pricing once you’re 2 years discharged with clean credit, which usually saves more over a five-year term than the alt premium costs during recovery.
How do I start rebuilding credit today?
Open a secured credit card the week you’re discharged (Home Trust Secured Visa, Capital One Guaranteed, Plastk are common), use it for small monthly purchases, and pay it in full every single month. After 6-12 months add a second trade line. After 24 months of clean reporting you’re a genuinely financeable borrower. We coach this exact sequence on every file.
