Refinance After a
Consumer Proposal —
equity works for you.
If you own a home, a refinance can do real work during or after a proposal — consolidate high-interest debt, access equity, or pay the proposal out early to accelerate your recovery.
Four ways a refinance
works on a proposal file.
It's equity-first — what's possible depends on your home's value and your remaining loan-to-value, not just your credit score.
Consolidate high-interest debt
Rolling credit card balances and lines of credit into your mortgage replaces several high-rate payments with one lower blended payment — freeing monthly cash flow while you rebuild. Debts inside your proposal are settled through your trustee; this applies to debts outside it.
Pay the proposal out early
Settling your consumer proposal in full compresses your recovery timeline. Equifax and TransUnion remove a proposal 3 years after it's paid off — versus 6 years from the date you signed it. Using home equity to pay it out early can save years on your credit file.
Access home equity now
Your home's equity doesn't freeze during a proposal. B-lenders and private lenders can unlock it for a genuine need — typically up to about 80% LTV at alt-A or 65–75% on private — while A-lenders wait for discharge and rebuilt credit.
A mapped exit to A-lender pricing
The refinance you do during or after a proposal is a bridge, not the destination. We set a refinance-trigger target at your first deal so you move to A-lender pricing the moment your file qualifies — not a day later than you have to pay the premium.
Three steps to refinance
a proposal file.
Equity first, structure second,
exit plan built in from day one.
Equity snapshot
Your home value, first-mortgage balance, proposal status and what you want to achieve — consolidate, cash out, or pay out the proposal. We estimate your available equity and options quickly.
Structure the refinance
B-lender refinance or second where credit allows; private where the proposal is active or the timeline is tight. We disclose the rate, fees and blended cost in writing before you commit.
Execute + plan the exit
Fund the refinance, consolidate or pay out as planned, then set a refinance trigger to move you to A-lender pricing once your rebuilt file qualifies.
We can help across
every proposal stage.
Tap any situation below to see how we approach it.
If you’re…Your proposal is still active and you want to pay it out early
Your proposal is still active and you want to pay it out early
Private and some B-lenders work with active proposals. Using home equity to settle the proposal in full starts the 3-year credit-report removal clock immediately — versus waiting for discharge and then another 6 years from the filing date.
Check my equityIf you’re…You were recently discharged and carry leftover high-interest debt
You were recently discharged and carry leftover high-interest debt
Post-discharge B-lenders can often consolidate credit card or LOC balances into a single mortgage payment at a fraction of the rate. We model the blended cost before you commit.
Model my savingsIf you’re…You need emergency cash but your bank won't touch you
You need emergency cash but your bank won't touch you
A private second mortgage behind your existing first can access equity without breaking your current rate. Total new mortgage stays under the lender's LTV cap — typically 65–75% on private files.
See my optionsIf you’re…You want to consolidate debt but keep your low first-mortgage rate
You want to consolidate debt but keep your low first-mortgage rate
A second mortgage or private second can pull equity without triggering the prepayment penalty on your first. We compare full refinance vs. second side-by-side so the decision is clear.
Compare pathsIf you’re…You're 12–18 months post-discharge and rebuilding credit
You're 12–18 months post-discharge and rebuilding credit
Alt-A lenders often approve files at this stage — better rates than private, still above A-lender. We time the move to squeeze the most out of your improving credit profile before the next renewal.
Start my applicationIf you’re…You want a plan to reach bank rates within 3 years
You want a plan to reach bank rates within 3 years
We reverse-engineer the timeline: how long the proposal stays on your credit file, when credit re-establishes, and exactly what income and LTV your target A-lender needs. Then we work backwards to get you there.
See the full hubWhat the equity math
looks like on a real file.
It's equity-first. The numbers below are illustrative — your home value and LTV room determine what's actually available.
- Home value$700,000
- First mortgage balance$400,000
- Monthly mortgage~$2,510
- Credit card debt$25,000 @ 21%
- Proposal payments~$350/month
- Total monthly outflow~$3,385
- New balance~$440,000
- LTV~63% (room to 80%)
- Monthly payment~$2,900
- Credit cardCleared at closing
- ProposalPaid out in full
- Total monthly outflow~$2,900
Illustrative only — your home value, LTV, rate and fees will differ. Alt-A rates are above A-lender pricing; private lenders averaged ~9.6% (CMHC Q3 2025). We confirm your exact numbers before you commit. See the full proposal hub.
- Canada Mortgage and Housing Corporation (CMHC) — Residential Mortgage Industry Report, Q3 2025. The 25 largest mortgage investment entities averaged ~9.6% on single-family lending. cmhc-schl.gc.ca
- Financial Consumer Agency of Canada (FCAC) — How long information stays on your credit report, accessed September 2026. Equifax and TransUnion remove a consumer proposal 3 years after paid off or 6 years from signing, whichever comes first. canada.ca
- Mortgage Squad Advisors rate desk — Illustrative alt-A/private refinance LTV and pricing ranges, reviewed August 2026. Alt-A typically to ~80% LTV; private typically to ~65–75% LTV. Illustrative — not a quote.
Common questions,
clear answers.
Timing, equity limits, costs and the path back to prime — answered plainly.
Can I refinance while my consumer proposal is still active?
Often yes — through a B-lender or private lender, typically to consolidate debt or pay the proposal out early. A-lenders generally won't refinance during an active proposal. It's equity-based, so what's possible depends on your loan-to-value.
How much equity do I need to refinance?
Generally the new mortgage needs to stay under about 80% of value at alt-A, or 65–75% on private. On a $700k home with a $400k mortgage, that's roughly $160k of room at 80% (alt-A), or about $55k–$125k on a private at 65–75%. Illustrative and varies by file; we confirm your exact numbers.
Should I refinance to pay off my proposal early?
Only if the math works and it doesn't drain your equity. Settling early completes the proposal and can shorten your path to prime — but if the payout eats most of your equity, or credit rebuild is the real bottleneck, waiting can be smarter. See our early-payout guide.
Can I consolidate other debt at the same time?
Yes — that's one of the most common reasons to refinance on a proposal file. Rolling high-interest balances into the mortgage replaces several payments with one at a lower blended rate. We model the blended cost so you can see the real monthly effect. Debts included in your proposal are settled through your trustee — consolidation applies to debts outside the proposal. A lower monthly payment does not mean a lower total cost: consolidating over a longer amortization can increase total interest.
What does a proposal refinance cost?
A B-lender prices above A-lender rates plus a lender fee; CMHC reported that the 25 largest private lenders averaged about 9.6% on single-family mortgages in Q3 2025, plus fees. It's a temporary premium — the plan is to refinance to A-lender pricing once your file heals. All fees disclosed in writing.
Will refinancing help my credit?
Indirectly. Clearing high-interest debt and lowering utilization can help your score, and paying the proposal out early starts the 3-year clock for it to come off your credit report. But the core rebuild is still consistent on-time payments over time — see our credit rebuild guide.
When can I refinance back to a bank?
Typically once the proposal is discharged, you've re-established credit for roughly two years, and your income and ratios support it. We set a refinance trigger and move you to A-lender pricing the moment you qualify — see our mortgage after 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
Consumer proposal files need a broker who knows which B-lenders and private lenders actually work with proposal files — the right match depends on your stage, equity and what you're trying to achieve.