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Bankrupcty Mortgage

Bankruptcy

Unfortunate situations like job loss, divorce, injury or illness can negatively impact your overall credit rating.  At MyMortgage.ca  Inc. we are aligned with lenders who will consider your mortgage application even after a consumer proposal or bankruptcy.

Hers’ how to qualify for a mortgage after bankruptcy:

Step 1 - Get your Bankruptcy Discharge or the Certificate of Completion for your Consumer Proposal.

After you have filed for bankruptcy or a proposal, you will need to follow your
trustee's directions on how to gain your Absolute Discharge or Certificate of Completion.

Step 2 - Credit Reports. Check your credit report and write to the credit bureau to correct any errors.

It is very common to see multiple errors on credit reports. Once you are discharged your existing balances should be marked as "included in bankruptcy". 

Get a free credit report from Equifax  or Tran Union and correct any mistakes on them.

You should check your credit score every four months or so to measure how you are doing. When you check your own credit score it does not adversely affect your credit score. If you are making multiple credit applications and creditors are checking your credit score this will have a negative effect of your credit score.

Step 3 - Obtain New Credit.    

Re-establish your credit history- mortgages are much easier to obtain with re-established credit. It is new credit you gain after your discharge that increases your credit score and indicates to lenders that you are able to handle credit responsibly.

Secured Credit cards

The easiest way to do this is with a secured credit card. You deposit $1,000 with the credit card company, and they give you a credit card with a $1,000 limit. The credit card shows up on your credit report as a normal credit card; you have started to re-establish your credit.

RRSP and Auto Loans

Any new credit is good credit so long as the payment record and fact of the debt is reported to the credit bureau. Auto loans and RRSP loans are great ways to rebuild your credit.

Most insures will require at least two forms of re-established credit for 12 months after bankruptcy,

Step 4 - Accumulate your Down Payment. 

The minimum down payment is 5%

Step 5 – Time Line

To qualify for this mortgage you must have been discharged from bankruptcy for at least two years

Finally, to find out if you qualify for a mortgage after bankruptcy, contact an associate at MyMortgage.ca . He/she can also tell you how large a mortgage you can obtain. Good luck with your new house!

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