Howard Hayes Bankruptcy Cambridge Ontario Blog

I met with Karen Monteiro from the Mortgage Alliance at Melvilles Cafe last Friday in Cambridge, Ontario for a coffee; and one of the questions I put to her was one that we get asked frequently here at Hoyes, Michalos & Associates.

Will I qualify for a mortgage in the future if I file for a personal bankruptcy or a Consumer Proposal now?

It is something that is far from impossible but does take some work and patience to achieve. After chatting with Karen, the kind of information she was able to tell me was that each lender is different of course with their own set of qualification criteria, however, if you’ve filed for a bankruptcy or have filed a consumer proposal in the past, here is what a typical lender might look for:

• You have been discharged (your bankruptcy/proposal ended) for a period of around 2 to 3 years minimum.
• You have saved up for a down payment of at least 5% that came from your own savings (ie, you did not have to borrow from someone else or used a gift)
• You have re-established good credit on two new trade credit accounts with a period of 2 years payments that have been made on time. (No glitches or late payments).
• You have started further savings, perhaps into an RRSP.
• You make a joint application with someone who has not filed insolvency proceedings

Karen also mentioned that as usual, it all depends on your individual circumstances and the market/lending conditions at the time you apply, but as a good starting point, its helps to know what a lender might be looking for. Its reassuring to know that lenders are willing to keep the door open and that their is life after bankruptcy.

If your goal is to have your own home in the future but don’t know where to start, give Karen a call at 519 624 9222 and she’d be happy to help.

If you feel your current debt load is preventing you from starting on your way to saving for a down payment or establishing a good credit score then give our office a call at 519 622 3773 or send me an email and we can talk about solutions that will help to get you started on the path to achieving your goals.

Today, Doug Hoyes and myself delivered a presentation to mortgage brokers from around the around the local Cambridge area.

We were invited to speak at the presentation by David Gyurits from the Mortgage Allicance and Interglobe. David’s Interglobe Financial Services company helps people to build financial security and independence. The Interglobe website has many interesting articles ranging from topics from dealing with debt, tax and investment advice along with on products such as RRSP’s and Life Insurance. Visit the website at totalqualityfinancial.

Some of the mortgage brokers we met from the area such as Karen Monteiro, Madelia Almeida and Dale Dyer were telling us that have noticed an increase in the number of people calling them concerned about the falling house prices in the Cambridge area and people asking for advice on re-financing their homes.

With mortgage lenders and banks tightening the requirements people need to meet in order to be able to borrow money against property they own, its important that you understand all your options when considering a financial strategy for you and your family.

If you’re looking to re-finance your mortgage and you have debts you need to bring under control, it’s important to look into all your options before making a decision on how to deal with the debts.

Here at Hoyes, Michalos & Associates, we’re firmly of this belief and we’ll often suggest to help clear up your debts with honest impartial advice. For example, even in light of today’s falling house prices, if you have some equity in your home that has built up over the years and you want to look at borrowing money against the property you own, to put towards credit card/credit lines, maybe contacting a mortgage broker is the right step for you to take first.

If a mortgage broker is unable to help you secure the financing you need, you still have options that we provide here at Hoyes, Michalos & Associates, here in Cambridge such as a Consumer Proposal or even personal bankruptcy. A Consumer Proposal would be a logical option to consider if you have equity in your home and are afraid you’d lose it if you filed for Bankruptcy. A Consumer Proposal would allow you to keep the equity in your home, whilst at the same time paying down you unsecured debts at a rate that is more manageable for you to handle.

Please contact us for more information, and to determine if a proposal is the correct option for you.