Active Proposal

Mortgage During an Active Consumer Proposal

You don't always have to wait for discharge. A narrow set of specialty B-lenders and private lenders will fund a mortgage while your proposal is still active — if you're current on your trustee payments and have started rebuilding credit.

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5-star rated| FSRA #13737| 5-min pre-qualification

Written by the Mortgage Squad Advisors Editorial Team · Reviewed by Surrayya Afzal, Principal Broker, FSRA #13737 · Updated August 2026 · Reviewed quarterly; next review November 2026

Today’s best 5-yr fixed

3.94%

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Your estimated payment

$3,137/mo

Property value$750,000

Down payment$150,000

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Maya · AI · 24/7

Tell me about active proposal mortgages

5-star rated| FSRA #13737| 50+ langs

You’re in a consumer proposal, keeping up your payments, and you either need to buy now or want to put your home equity to work — but your bank won’t look at you until the proposal is done and your credit is rebuilt. That’s the bank’s rule, not the whole market’s. Specialty lenders exist precisely for active-proposal files, and if yours is being serviced and you have some equity or a reasonable down payment, financing during the proposal is often possible.

The short answer

Yes, you can sometimes get a mortgage during an active consumer proposal — through specialty B-lenders or private capital, not a bank. You'll generally need to be current on your trustee payments, have a reporting trade line, and put more down (commonly ~20–35%, illustrative). It's a bridge; the plan is to reach discharge and climb toward A-lender pricing. See the full lifecycle on our mortgage after a consumer proposal hub.

Can you get a mortgage during a consumer proposal?

Often, yes — but not from a bank. While your consumer proposal is active, a narrow set of specialty B-lenders and private lenders will consider funding a purchase or refinance, provided you’re current on your trustee payments and have re-established at least one reporting trade line. Terms are tighter than after discharge — expect a higher down payment and a rate premium — and it’s used deliberately as a bridge.

What you get

Why Canadians choose Mortgage Squad Advisors.

Specialty B-lenders that consider active-proposal files

Private capital that funds on equity at any proposal stage

Purchase or refinance while the proposal is still active

Option to refinance and pay the proposal out early where it helps

Requires being current on trustee payments + a reporting trade line

Higher down payment (commonly ~20-35%) but a real path forward*

A mapped plan to discharge and then toward A-lender pricing

All lender + broker fees disclosed in writing before you commit

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

Discharge / completion date

19 months

Time since discharge

B-lenders — with 2 clean re-established tradelines

Where you stand today

~5 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.

Estimate only — not an approval. This is a simplified guide based on typical timelines. Your actual path depends on your full credit rebuild, income, equity and each lender’s and insurer’s own criteria, and is subject to lender review.

Estimates only — a licensed advisor confirms your file. FSRA #13737.

Or ask Maya directly:

Do I qualify for a active-proposal mortgage?What documents will I need?How fast can this close?

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How it works

Three simple steps, no pressure.

Confirm you're current

Show you’re current on your trustee payments and share your filing date and re-established credit. That, plus your income and any equity, tells us which specialty lenders fit. No bureau pull to begin.

Match a specialty lender

We place your active file with a specialty B-lender or private lender that works mid-proposal, and disclose the down payment, rate, fees and terms in writing before you commit.

Bridge to discharge

We set the plan to reach discharge — including whether an early payout with equity makes sense — then re-shop toward B and eventually A-lender pricing as your credit rebuilds.

Run the math first

What a specialty lender needs to see on an active file

Active-proposal lending is a narrow niche, and the lenders in it look for a specific, reassuring picture. Above all they want proof you’re current on your trustee payments — a proposal being serviced on time is a very different risk from one in arrears. They’ll want to see you’ve started re-establishing credit, ideally at least one trade line reporting clean. And they’ll price for the added risk: a higher down payment (commonly around 20–35%, illustrative) or, on a private file, a conservative loan-to-value against your equity.

What they don’t need is perfection — that’s the point. A file that would be an automatic bank decline can be a clean approval at the right specialty lender, because they underwrite the whole situation rather than a single flag. Every figure here is illustrative and lender-dependent.

Should you finance now, or wait for discharge?

This is the honest question, and the answer is genuinely file-specific. Finance now if you have a real need — a purchase you can’t defer, a debt situation that’s costing you more than the mortgage premium would, or an early-payout opportunity that shortens your whole timeline. The premium you pay during the proposal buys you the transaction and the progress.

Wait if there’s no pressing need: options widen and pricing improves the moment you’re discharged, so a few months of patience can meaningfully lower your cost. Many active-proposal enquiries do better waiting until shortly after discharge. We’ll tell you which camp your file is in rather than push you into a deal — see the stage-by-stage picture in our active vs discharged guide.

Refinancing to pay the proposal out early

One of the most powerful moves available on an active file is refinancing to settle the proposal in full. Because the proposal is still active at funding, you refinance through a B-lender or private lender, use the proceeds to pay the trustee, and the proposal completes — starting the discharge clock immediately and compressing a multi-year term into the time it took to close.

It only makes sense when the math works and it doesn’t drain your equity, so we model equity → refinance amount → payout → fees → remaining equity → exit before recommending it. Full framework in our pay off a proposal with home equity guide.

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FAQ

Common questions, answered.

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

Can I buy a house during a consumer proposal?

Sometimes, through a specialty B-lender or private lender — not a bank. You'll generally need to be current on your trustee payments, have a reporting trade line, and put more down (commonly ~20–35%, illustrative).^basis Many files do better waiting until after discharge if there's no urgency; we'll tell you honestly which applies.

Can I refinance during an active proposal?

Yes, often — through a B-lender or private lender, typically to consolidate debt or to pay the proposal out early. A-lenders generally won't refinance during an active proposal. Whether it makes sense depends on your equity and the math — see our early-payout guide.

What down payment do I need during a proposal?

Commonly around 20–35% on a B-lender purchase, or an equity-based amount on a private file — illustrative and lender-dependent.^basis It's higher than after discharge, which is one reason some borrowers wait. We confirm what's currently available for your file.

Do I have to tell the lender about the proposal?

Yes — it's on your credit report and the lender will see it. Trying to hide it isn't an option and isn't necessary: specialty lenders work with active proposals openly. What they want is honesty and proof you're current on payments.

Will this hurt my proposal?

Taking a new mortgage doesn't cancel or breach your proposal, but you must keep up both your trustee payments and the new mortgage. If you refinance to pay the proposal out entirely, it completes early — generally a positive. Talk to your Licensed Insolvency Trustee about any file-specific implications.

What does it cost?

More than a bank, deliberately. A B-lender prices above A-lender rates plus a lender fee; private averaged about 9.6% for single-family files in Q3 2025 per CMHC, plus fees.^CMHC It's temporary — the plan is to reach discharge and refinance toward prime. All fees disclosed in writing.

What happens after discharge?

Your options widen and pricing improves. We re-shop your file toward a wider B-lender pool and, as your credit rebuilds over roughly two years, toward A-lender pricing. See the full timeline on our mortgage after a consumer proposal hub.

Related products

Mortgage after a consumer proposal (hub)Private mortgage B-lender mortgage Alternative lending Guide: pay off with home equity Guide: active vs discharged Case study: bought during an active proposal

Sources & references

Figures on this page are sourced below and re-checked each quarter. Rates, insurer rules and lender policies change — confirm anything you plan to act on with a licensed advisor.

1. Canada Mortgage and Housing Corporation (CMHC), Residential Mortgage Industry Report (Q3 2025) — Average interest rate on single-family private mortgages was approximately 9.6% in Q3 2025.
2. Mortgage Squad Advisors rate desk (internal verification), Illustrative active-proposal pricing and down-payment ranges (reviewed August 2026) — Active-proposal files commonly require a higher down payment (~20–35%) and price above A-lender rates; figures are illustrative, vary by lender and file, and are subject to lender review — not a quote.

Ready when you are.

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