Can You Buy a House After Bankruptcy or a Consumer Proposal?
“Can I buy a house after declaring bankruptcy?”
Joe Gonzalez got this question recently, and it’s very similar to asking about buying after a consumer proposal. The answer is yes. Here’s how.
There is hope
Going through a bankruptcy or consumer proposal isn’t fun, and it can even feel embarrassing. But it doesn’t mean you’ll never own a home. Many Canadians rebuild their credit and go on to buy. It just takes a plan, and the discipline to follow it.
Step 1: Listen to your trustee
If you’ve gone through a bankruptcy or consumer proposal, you’ll have a Licensed Insolvency Trustee. These are professionals who work in this field every day. Follow their advice closely. They’ll help you understand your obligations, your timeline and how to rebuild.
Step 2: Find a mortgage broker
A mortgage broker can help you understand when and how you’ll be able to qualify for a mortgage again. They work with a range of lenders, including some that specialize in borrowers rebuilding their credit, and can give you clear steps to get mortgage-ready, whether you’re returning to homeownership or buying for the first time.
Step 3: Follow the plan exactly
This is the most important part. After a bankruptcy or consumer proposal, your credit history is sensitive and easily bruised. The plan your trustee and mortgage broker give you needs to be followed to the letter:
- Make every payment on time, every time
- Use credit responsibly, such as a secured credit card if recommended
- Avoid new debt you don’t need
- Save consistently for your down payment
Don’t deviate, and you’ll be able to own a home one day.
Don’t be greedy with your price
Joe also shares a quick lesson from a recent listing: sellers who priced their home fairly got offers within days and sold close to asking, while many over-greedy sellers sit on the market and end up losing money.
Have questions about your situation?
Every situation is different. Reach out and we’ll connect you with the right people to build your plan.
Call 289-276-1716 or start your home search.
