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
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.
posted by Howard @ 2:07 PM
0 Comments:
Post a Comment
<< Howard Hayes Bankruptcy Cambridge Ontario Blog