--- title: Can I get a mortgage after filing a bankruptcy or consumer proposal?  date: 2022-05-04T07:57:56-04:00 author: Blaire MacNeil canonical_url: "https://grantthorntonlimited.ca/en/debt-help-resources/articles/debunking-the-great-mortgage-myth-can-you-buy-a-home-after-filing-a-bankruptcy-or-consumer-proposal" section: Articles --- [ Back to the hub ](https://grantthorntonlimited.ca/en/debt-help-resources/articles) # Can I get a mortgage after filing a bankruptcy or consumer proposal? Blaire MacNeil CPA, CIRP, Licensed Insolvency Trustee ![Man and woman unpacking moving boxes into new home](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/Web-image-square/_articleHero/6414/Can-I-get-a-mortgage-after-filing-a-bankruptcy-or-consumer-proposal.jpg.webp) Blaire MacNeil CPA, CIRP, Licensed Insolvency Trustee For many Canadians, buying a home is a major financial goal. This goal may seem challenging for various reasons but having filed a consumer proposal or bankruptcy shouldn’t be one. It’s a common misconception that filing a bankruptcy or a consumer proposal will prevent you from getting a mortgage and owning a home. On the contrary, being proactive about settling your debt is the best path to future homeownership. ## Can you get approved for a mortgage if you have debt? **It could be challenging.** Banks and other mortgage lenders consider many factors when approving an individual for a mortgage. These factors include employment, income, assets owned, debt, and credit history. Concerning debt, the amount you owe, length of loans, and debt-to-income ratio are factors lenders consider when assessing your mortgage eligibility. If your debt levels are too high or your debt ratios don’t meet the lender’s standards, they may decline your application. Getting approved for a mortgage could be difficult if you have debt and cannot make payments to reduce the principal amount. ## Can filing a bankruptcy or a consumer proposal help you buy a home? **Yes, by settling your debts.** Formal debt solutions can provide you with a financial fresh start. Once the insolvency process is complete, you can [focus on rebuilding your credit](https://grantthorntonlimited.ca/en/debt-help-resources/articles/what-affects-your-credit-score) without the baggage of old debt, bettering your creditworthiness in the eyes of banks and other lenders. [Consumer proposals](https://grantthorntonlimited.ca/en/consumer-proposal/what-is-a-consumer-proposal) allow you to reduce your debt by up to 80% and simplify your repayment into a single, interest-free monthly payment. With a clear, customizable plan, you can escape the endless cycle of minimum debt payments and interest and get closer to your goal of homeownership. ## But don’t bankruptcies and proposals affect your credit? **Yes, but only for a while. While both processes impact your credit, they provide a light at the end of the tunnel. Depending on your province, a bankruptcy will show on a credit report for six to seven years after discharge. A consumer proposal will be removed from a credit report three years after you've fully performed the proposal. So, while there will be an impact on your credit history, it won’t be forever and will at most delay your ability to be approved for a mortgage at a regular interest rate. Sharing your goal of homeownership when[ meeting with a Licensed Insolvency Trustee](https://grantthorntonlimited.ca/en/debt-help-resources/articles/what-happens-when-you-meet-with-a-lit) will allow your trustee to advise you on your best course of action for debt relief and how to rebuild your credit. ## Can someone who has filed a bankruptcy or a consumer proposal be approved for a mortgage? **Yes, if you take the right steps**. Your approval will be based on your creditworthiness and spending behaviour once you've been discharged from bankruptcy or completed your consumer proposal, and your certificate of full performance is issued. To help set you up for success after completion, you’re required to participate in two financial counselling sessions. Our certified counsellors will offer insights and advice on rebuilding your credit and [establishing a budget](https://grantthorntonlimited.ca/en/debt-help-resources/articles/how-to-make-a-basic-budget-and-stick-to-it) so that you can become an eligible mortgage candidate. ## When should you seek professional advice? **When you spot the signs.** It’s best to seek professional advice as soon as you experience one or more [warning signs of unmanageable debt](https://grantthorntonlimited.ca/en/debt-help-resources/articles/debt-danger-signals). The good news is that a consultation with a Doane Grant Thornton Licensed Insolvency Trustee is free and requires no commitment after the fact. If you find yourself questioning whether you’ll ever be able to pay off your debts and achieve your dream of homeownership, reach out to our team at any time for prompt, accurate, and helpful advice. [Book your free, no-judgment consultation](https://grantthorntonlimited.ca/en/get-in-touch/contact-us) and start the road to debt freedom today. About the Author Blaire MacNeil CPA, CIRP, Licensed Insolvency Trustee ## Latest articles [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/67684/assets-CP-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [What happens to your assets in a consumer proposal? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/65155/recreational-vehicle-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [### What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/63555/influencer-survey.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [### Influenced into debt: How social media impacts Canadians' finances ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) ## Subscribe to our newsletter Get tips and tools to help manage your finances and live debt free. \*I agree to receive communications from Doane Grant Thornton. I understand that I can unsubscribe at any time. ## **Take the first step** to debt freedom Speak to one of our debt solutions professionals during a free, no-obligation consultation. [ Book a free consultation ](https://grantthorntonlimited.ca/en/get-in-touch/contact-us) ## Related articles ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/67684/assets-CP-square.webp) ### [What happens to your assets in a consumer proposal? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) In most cases, a consumer proposal allows you to keep all of your assets while bankruptcy may require you to surrender certain non-exempt assets. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) ![Marina filled with sailboats and recreational boats along the Charlottetown waterfront on a sunny day.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/65155/recreational-vehicle-square.webp) ### [ What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) For many Canadians, recreational vehicles offer freedom, adventure, and unforgettable family memories. But if you’ve financed an RV, travel trailer, boat, ATV, snowmobile, or side-by-side, those monthly payments can become difficult to manage if life takes an unexpected turn. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) ![A woman in scrubs sitting on a park bench looking at her phone, with imagery of social media likes and spending surrounding her.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/63555/influencer-survey.webp) ### [ Influenced into debt: How social media impacts Canadians' finances ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) While social media may be free to use, the things it influences us to buy often come at a cost. As influencer marketing continues to grow, more Canadians are making purchases based on what they see online. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) ![A woman sitting with papers and a calculator in front of her](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/63201/cp-annulment-square.webp) ### [ What happens if you miss a consumer proposal payment? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) Missing a payment during your consumer proposal can feel scary—but it’s not the end of the road. This article explains exactly what happens if you miss a consumer proposal payment, how to avoid annulment, and what to do if your consumer proposal is annulled. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) ![A young woman sits with and supports an older woman holding a cane.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/Web-image-square/_articleThumbMedium/58677/caregiver-article-square.webp) ### [ Tips to avoid debt as a family caregiver in Canada ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-tips-to-avoid-debt-as-a-family-caregiver-in-canada) With the rising cost of living and long waitlists for long-term care, more Canadians are becoming family caregivers, but it can come with an emotional and financial cost. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-tips-to-avoid-debt-as-a-family-caregiver-in-canada) ![Person packing a box for moving](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/57664/adult-child-moving-home-square.webp) ### [ How to budget when your adult child moves back home ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-how-to-budget-when-your-adult-child-moves-back-home) Adult children moving back home isn’t just a trend—it’s quickly becoming the norm. While the cost of living continues to climb across Canada, many Gen Z and millennial Canadians are packing up their apartments and returning to the nest as “boomerang kids.” [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-how-to-budget-when-your-adult-child-moves-back-home) ![Person looking down at bills with head in hand, surrounded by paperwork and an open laptop.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/56923/utilities-square.webp) ### [ What happens if you don’t pay your utility bills in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-dont-pay-your-utility-bills-in-canada) If you’re worried about unpaid electricity, heating, or water bills, you’re not alone. But disconnection isn’t immediate, and you usually have options to protect your service while you get back on track. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-dont-pay-your-utility-bills-in-canada)