Mortgage during an
active consumer proposal —
real options exist.
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.
What we do that your
bank won’t.
A bank decline on an active proposal is their rule — not the whole market’s. Specialty lenders exist for exactly this situation.
Specialty B-lenders that consider active-proposal files
A narrow set of specialty B-lenders will consider a purchase or refinance while your proposal is still active — provided you are current on trustee payments and have started re-establishing credit.
Private capital that funds on equity at any stage
Private lenders underwrite on collateral value rather than credit profile. If you have home equity or a strong down payment, private funding is available regardless of where you are in the proposal lifecycle.
Refinance to settle the proposal in full
Where the math supports it, we can refinance your property through a B or private lender, pay the trustee with the proceeds, and complete the proposal early — compressing a multi-year term into a single closing.
A mapped plan to discharge and A-lender pricing
Every active-proposal file gets a written timeline: current lender → discharge → B-lender re-shop → A-lender pricing as credit rebuilds. All fees disclosed before you commit.
How to get funded
during an active proposal.
Three steps from your current file to a funded mortgage — with a clear plan to discharge.
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.
We help across
every active-proposal scenario.
Tap any situation below to see how we approach it.
If you’re…You're current on trustee payments and need to buy now
You're current on trustee payments and need to buy now
Specialty B-lenders can consider your file if you're current on payments and have at least one re-established trade line. A higher down payment (commonly ~20–35%) and a rate premium apply, but the transaction is possible — we confirm what's available for your file.
Check my active-proposal optionsIf you’re…You want to use home equity to pay off the proposal early
You want to use home equity to pay off the proposal early
Refinancing through a B or private lender to settle the trustee in full is one of the most powerful moves on an active file. The proposal completes at closing and the discharge clock starts immediately. We model the equity math before recommending it.
Model my early-payoutIf you’re…You own a property and need to access equity mid-proposal
You own a property and need to access equity mid-proposal
Private lenders lend on the property's collateral value, not your credit score. If you have sufficient equity and a clear exit strategy, a private second mortgage or refinance is often available even while the proposal is active.
Explore my equity optionsIf you’re…You're unsure whether to act now or wait for discharge
You're unsure whether to act now or wait for discharge
Many active-proposal enquiries do better waiting — options widen and pricing improves the moment you're discharged. We'll tell you honestly which camp your file is in rather than push you into a deal. We model the cost of acting now vs. waiting.
See the full lifecycleIf you’re…You've been declined by your bank mid-proposal
You've been declined by your bank mid-proposal
A bank decline is not the whole market. Specialty B-lenders and private lenders exist precisely because active-proposal files can't access bank channels. A decline from one channel is a redirect to the right channel.
Find the right lenderIf you’re…Your proposal is in arrears or has been amended
Your proposal is in arrears or has been amended
An arrears file is a harder placement but not always impossible — private lenders may still consider it on strong equity. We'll be honest about what's available and map what you need to do to get back on track for a funded file.
Discuss my fileActive proposal vs.
waiting for discharge.
Sometimes the premium of acting now beats the cost of waiting. Here is what the comparison typically looks like.
- Lender typeSpecialty B or private
- Typical down payment~20–35% (illustrative)
- Rate vs A-lenderPremium (higher)
- Lender feesYes — disclosed upfront
- Timeline to fundAvailable now
- Best forReal need now
- Lender typeFull B-lender pool
- Typical down payment10–20% (improves over time)
- Rate vs A-lenderCloser to prime
- Lender feesOften lower / nil at A
- Timeline to fundAfter discharge + rebuild
- Best forNo urgent need
Illustrative only — figures are lender-dependent and not a quote. Down payment ranges (~20–35%), rate premiums, and fees vary by file and are disclosed in writing before you commit. See live rates.
- Financial Services Regulatory Authority of Ontario (FSRA). Alternative and private mortgages. Accessed September 2026. Private mortgages usually carry higher interest rates and fees than bank mortgages, are often short-term, and need a clear exit strategy.
- Office of the Superintendent of Bankruptcy Canada (OSB). You owe money: consumer proposals. Accessed September 2026. A consumer proposal is filed through a Licensed Insolvency Trustee and its term cannot exceed five years.
- 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.
Common questions,
clear answers.
Down payment, lender types, costs, proposal impact, and what comes after discharge — answered plainly.
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). 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. 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, which is 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 lenders charge higher rates still, plus lender and broker fees. For today's prime benchmarks, see our live rates. 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.
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
Find a specialist in your city
Active consumer proposal files need a mortgage advisor who knows which specialty B-lenders and private lenders will consider your file — and which won't. We place mid-proposal files across Canada.