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Mortgage Squad Advisors
Consumer Proposal

Mortgage after a consumer proposal? Yes — sooner than you think.

Active or discharged. Specialty B-lenders fund active files. Discharged files open up to wider B and eventually A-lender pricing in 2-3 years.

Active OK (B/private)Discharged → B-lender5-10% down post-disc2-3 yr to A-lenderRe-establish credit100% confidential
5-star rated| FSRA #13737| 5-min pre-qualification

Written by the Mortgage Squad Advisors Editorial Team · Reviewed by the Principal Broker, FSRA #13737 · Updated June 2026

In or past a consumer proposal?
There is a real path back. No judgment.
Whether you're still making payments or already discharged, we work with lenders who'll help you rebuild — and we show you exactly how to get back to a Big-6 bank.
Your path backActive
ActiveDischarged+12 mo clean+24-36 mo clean
Specialty B + private
20-35%
Down (active)
5-10%
Down (discharged)
2-3 yrs
To A-lender (post-disc)
Private
100% confidential
Get pre-approved Affordability
Maya · AI · 24/7
I have a consumer proposal — when can I get a mortgage?
5-star rated| FSRA #13737| 50+ langs

Most Canadians in or post-consumer-proposal are told by their bank that they need to wait 6-7 years before they’ll be considered for a mortgage — which simply isn’t true. Active proposals can be financed today via specialty B-lenders and private capital. Discharged proposals open up B-lender options immediately, and A-lender pricing typically becomes available 24-36 months post-discharge with clean re-established credit. The path back is real, and starting it sooner is always better than waiting.

What you get

Why Canadians choose Mortgage Squad Advisors.

Active consumer proposal financing via specialty B-lenders (yes — even mid-proposal)
Discharged proposal: refinance, purchase, or HELOC all available at B-lenders
Minimum 2 active reporting trade lines (12+ months clean) helps re-establishment
Private mortgage option for equity-based files at any proposal stage
Up to 80% LTV on alt-A; 65-75% on private
5-10% down possible at certain B-lenders post-discharge with insurer approval
Plan to refinance back to A-pricing once 24-36 months post-discharge clean
No judgment — proposal is a financial recovery tool, not a moral failing
Discreet — your file is private and stays that way
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.

Or ask Maya directly:

Do I qualify for a post-proposal mortgage?What documents will I need?How fast can this close?
Maya · 24/7 AI advisor

Question about post-proposal mortgage? Maya answers instantly in 50+ languages.

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How it works

Three simple steps, no pressure.

1

File snapshot

Date of filing, expected or actual discharge date, current re-established credit (trade lines reporting, monthly payment history). We map your full options in 24 hours — no bureau pull required to begin.

2

Match the lender

Active proposal: specialty B-lender (Haventree, certain RFA programs) or private. Discharged: wider B-lender pool, plus potential A-lender if 24+ months post-discharge with 2+ trade lines reporting clean. We pick the cheapest path that fits.

3

Plan the path forward

Set a refinance trigger date (typically 24 months post-discharge for A-lender eligibility). We monitor your credit recovery and re-shop when you cross each milestone — most clients move from B to A within 24-30 months of discharge.

Run the math first

Can you get a mortgage while still in a consumer proposal?

Yes — and the bank that told you to wait six years was wrong. A consumer proposal is a legal arrangement filed through a Licensed Insolvency Trustee, not a bankruptcy, and specialty B-lenders and private capital will fund you mid-proposal once you can show you’re current on your trustee payments.

The trade-off is structure, not refusal. Expect 20-35% down, a rate premium in the +100-200 bps range on a B-lender file, and equity-based pricing on a private. Lenders want proof the proposal is being serviced and that you have re-established at least one reporting trade line. A-lenders are the exception — they generally want the proposal paid out, discharged, and your credit rebuilt before they’ll look. So an active file is almost always a B or private placement.

The point of taking an alt mortgage now is to leave it. We map the A-lender exit from day one, with a trigger date — not an open-ended commitment to premium pricing.

How long after discharge until A-lenders will approve you?

Discharge is the starting line, not the finish. Most A-lenders want roughly two years post-completion with re-established credit before they’ll price you at prime — and discharge by itself does not satisfy that. What moves a lender from no to yes is the rebuild.

Re-established credit means active, on-time trade lines reporting fresh activity: typically two or more accounts (a secured or unsecured card, a small loan, a car payment) reporting clean for 12 or more months, with low balances relative to limits. The proposal stays visible on your bureau for about three years post-completion, so the aging of the file and the depth of new clean history are what build lender confidence in parallel.

In the 24-36 month window, with two clean trade lines and a stable income story, insured A-lender purchases at 5-10% down become realistic. We re-shop your file the moment you cross each milestone rather than leaving you parked in B-pricing.

Can you pay out your consumer proposal early using home equity?

If you own a home with equity, this is often the single fastest route back to prime. You refinance — through a B-lender or private, since the proposal is still active at the moment of funding — and use the proceeds to settle the proposal in full through your trustee. The proposal completes, the discharge clock starts immediately, and you’ve compressed a 60-month term into the time it took to close.

The math frequently works in your favour. The interest premium you carry on a short alt mortgage is often less than the years of premium pricing you’d otherwise pay waiting for the proposal to run its full term — and an early discharge accelerates the path to A-lender refinancing. We model the full lifecycle cost so the decision is numbers, not guesswork.

It only makes sense if it shortens the road. We won’t recommend a payout that doesn’t measurably improve your timeline to prime.

Which lenders finance a consumer proposal — and in what order?

Think of it as a ladder, and the goal is to climb it. A-lenders sit at the top: prime pricing, insured options, but they generally require the proposal paid, discharged, and credit re-established for roughly two years. That’s the destination, not usually the entry point.

B-lenders are the workhorses for proposal files. A narrow set of specialty B-lenders will fund during an active proposal; the pool widens considerably once you’re discharged. Pricing runs roughly +75-150 bps over prime, with down payments typically 10-35% depending on stage. Private lenders sit at the bottom of the ladder but lend the fastest — they’re equity-based, care less about the proposal itself, and fund at any stage, usually 65-75% LTV with lender and broker fees disclosed in writing.

With access to 100+ lenders including B and private, we place you on the lowest-cost rung that approves today, then move you up.

What does the recovery plan back to prime actually look like?

An alt or private mortgage only works if it ends. The differentiator isn’t getting you approved once — most brokers can place a file — it’s the mapped exit that gets you to prime pricing and keeps you from overpaying for years.

The rebuild is concrete. Open a secured card immediately and use it monthly, paying the full balance every cycle. After 6-12 months of clean reporting, add a second tradeline so you have two active accounts seasoning at once. Keep utilization low — under 30%, ideally under 10%. Stay current on the mortgage and the proposal payments. Those clean trade lines, aging alongside the proposal falling off your bureau, are what unlock A-lender eligibility around the 24-month post-discharge mark.

We set the refinance trigger date when we place your first mortgage, monitor your credit recovery, and re-shop the file the moment you qualify for better. FSRA #13737, no judgment, fees disclosed, and service in 50+ languages — the plan is the product.

FAQ

Common questions, answered.

Don’t see yours? Ask Maya — instant answer, any time.

Active vs discharged — what’s the difference for lenders?
Active = much narrower lender list (specialty B-lenders + private). Discharged = options widen significantly. After 2-3 years post-discharge with clean re-established credit (2+ trade lines reporting 12+ months clean), A-lenders open up. Discharge alone isn’t enough — re-establishment is what moves lenders from no to yes.
How much down payment do I need?
Active proposal: 20-35% down typical (B-lender or private). Recently discharged: 10-20% down at B-lenders. 2-3 years post-discharge with clean re-established credit: 5-10% possible at certain B-lenders with insurer approval (Sagen and Canada Guaranty have proposal-friendly programs). Private: 25-35% down at any stage based on equity.
How do I re-establish credit during and after a proposal?
Open a secured credit card immediately (most banks offer them — Capital One Guaranteed, Home Trust Secured Visa, Plastk). Use it monthly. Pay it in full every month. After 6-12 months of clean reporting, add a second card. After 24 months of consistent clean reporting, you’re a substantially more financeable borrower. We coach this process on every file.
Can I refinance to pay out my proposal early?
Sometimes — if you have sufficient home equity and can find a lender comfortable with the active proposal. This can shorten your proposal term significantly (often from 60 months down to 24-36 months) and put you on the path to A-lender pricing faster. We model the math — sometimes the refinance saves more than the proposal premium costs you.
Will the proposal stay on my credit report after discharge?
Equifax: 3 years post-completion. TransUnion: 3 years post-completion (or 6 years from filing date, whichever is earlier). A-lenders typically want the proposal off the report OR at least 24-36 months past discharge with clean re-established credit. The aging is what matters most — time + clean trade lines = lender confidence.
Does my spouse’s proposal affect me?
Only if you co-borrow. Joint mortgages will pull both bureaus, so your spouse’s proposal will affect a joint qualifying. We can structure single-borrower deals (one name on title, one name on mortgage) where it makes sense — this requires the qualifying borrower to carry the file on their own income alone.
Will my employer or family find out?
No. Consumer proposals are private — only credit bureaus and creditors are notified. Your employer is not informed, your file is not in the newspaper, and your conversations with us are 100% confidential. There is no public record of a consumer proposal in Canada.
What’s the cost premium on a post-proposal mortgage?
B-lender: typically +75-150 bps over A-lender rate. Private: +200-500 bps + lender + broker fee. Refinancing back to A-lender post-discharge typically saves more in interest over a 5-year term than the alt premium you pay during recovery. We model the full lifecycle so you can see the actual cost.
Can I buy a home with an active consumer proposal?
Yes — though it requires specialty financing. Down payment will be 20-35% typically, rate premium 100-200 bps over A, and the lender will require evidence you’re current on your proposal payments. We’ve placed dozens of active-proposal purchase files. The catch: most files do better waiting until 12 months post-discharge if there’s no immediate purchase pressure.
What if I had a bankruptcy that became a proposal, or vice versa?
Common scenario. Lenders look at the most recent insolvency event for timing. A bankruptcy converted to a proposal still has the proposal as the active event. A discharged bankruptcy followed by a discharged proposal stacks the recovery timeline — but with strong re-establishment, both eventually fall off and A-lender pricing returns. We map the exact path on every file.

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